article thumbnail

How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It goes something like this … VC: “How much money are you raising?” Founder: “$8–10 million” VC: “What’s your current burn rate?” A VC is looking for reasonableness.

article thumbnail

Venture Capital is About Human Capital

Both Sides of the Table

Gregg Johnson, CEO of Invoca For the first 5 years or so after I became a VC I didn’t talk much about what I thought a VC should be excellent at since frankly I wasn’t sure. It’s easy to think the role of a VC is to have strong opinions about markets, trends, tech dynamics and so forth. The role of VC is sparring partner.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How To Find Support Resources For Your Startup Stage

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Don’t waste your resources on the wrong ones.

Resource 171
article thumbnail

How Many Investors Should You Talk to in a VC Fund Raise? And How Do You Prioritize?

Both Sides of the Table

The typical VC process is as follows: They say there are three rules in property: Location, location, location. The surest sign a fund-raising process has stalled is when you aren’t getting follow-up meetings or hearing from the VC or hearing from friends that they got a phone call or email asking about you. Same with VC.

article thumbnail

6 Funding Resources For Ideas Needing More Validation

Startup Professionals Musings

Funding for commercial product prototypes is still R&D in the eyes of venture capital investors, but in business areas with large opportunities, this activity will catch the eyes of specialized angel investors. Thus the best entrepreneur strategy for funding is to build solutions, not technology. Marty Zwilling

Resource 102
article thumbnail

5 Reasons For Monetizing The Idle Resources Of Others

Startup Professionals Musings

The pervasive ability and need to communicate constantly and globally through the Internet and smartphones is incenting everyone to get more out of their own assets and time, and capitalize on the idle resources of others. With crowdfunding, entrepreneurs and artists no longer need to wait for family money or venture capital.

Resource 126
article thumbnail

8 Potential Entrepreneur Assists From Your Alma Mater

Startup Professionals Musings

Most aspiring entrepreneurs look to their alma mater, or any university, as a source of classes that can help them, but neglect to think outside the box or take advantage of all the other resources to be found there. Get help with grant funding and incubator resources. Access to entrepreneurs-in-residence, business mentors.