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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? Me: At what price? Him: It wasn’t priced. So you did raise with a price. It’s just a maximum price. Him: But when I raised my first round we didn’t know how to price the company. How will you price the next round?

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VC investors: Don’t be greedy even if you can.

Berkonomics

Especially when outside investors, venture capitalists or angels have put in substantial money, and the sales price is not enough to give them a reasonable return for the time and money invested, these investors can be – in a word – greedy. The post VC investors: Don’t be greedy even if you can. first appeared on BERKONOMICS.

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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.

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The Changing Venture Landscape

Both Sides of the Table

how on Earth could the venture capital market stand still? One of the most common questions I’m asked by people intrigued by but also scared by venture capital and technology markets is some variant of, “Aren’t technology markets way overvalued? With the enormous changes to our economies and financial markets?—?how

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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened?

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Need money? Read this!

Berkonomics

You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors. But few businesses grow into the sweet spot of $20 million to $30 million in worth to an ultimate buyer without the injection of outside capital.

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TrueCar Prices IPO

socalTECH

Santa Monica-based TrueCar has priced its IPO, saying last night that it will sell 7.8 The pricing was below the company''s earlier, estimated IPO range of $12.00 The company offers up online pricing of news cars as well as powers affiliate car buying programs. million shares of its stock at $9 per share. in the IPO offering.

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