Tag Archives: Venture Capital

Looking for the ‘Next Big Thing’? Ranking the Top 50 StartUps

Entrepreneurs and small business owners of-interest.

Excerpt:  Venture capitalists are still investing in flashy Internet start-ups, but the “Next Big Thing” is more likely to be a maker of humdrum Internet plumbing for businesses.

The Wall Street Journal’s third annual ranking of the top 50 venture capital-backed companies shows a crop of contenders that overall are focused less on online consumers than in years past.

Read full article via Looking for the ‘Next Big Thing’? Ranking the Top 50 Start-Ups – WSJ.com.

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Guarding Against the Angels | Wharton Magazine

This is a founder or CEO question that is foremost when seeking venture capital funding  ….  or if it is not, it should be.    Read advice and reality.   Entrepreneurs

 Excerpt:  There is a question that most founders ask when organizing their startup companies in preparation for fundraising with the angel and venture capital community:

“Should I protect myself against getting fired from my position with the company?  Maybe a severance payment clause or a clause accelerating the vesting of my stock if the VCs fire me without cause?”

Read full article via Guarding Against the Angels | Wharton Magazine.

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Practical Advice for Raising Early Stage Venture Capital – HBR

Good read on startup’s funding and venture capital — practical tips and advice.  All entrepreneur’s read recommendation.

Excerpt:  Most great businesspeople I’ve met would correctly advise an entrepreneur to avoid raising money if possible. Easy for them to say, right? But there are good reasons to bootstrap. First, you maintain control of the company. Second, maintaining control allows you to experiment and learn where the business is “naturally” going. Third, if you own the company, you can have a great exit at a low price. Fourth, if you’re able to build the company without significant outside capital that may mean your business has even more “real” legs.

But raising venture capital is sometimes a great idea. If your business has high velocity, high margins, and a huge market, venture may be a good road for you. There are some helpful resources out there on venture terms, good venture funds vs. bad ones, and questions you may want to ask a venture capitalist if you meet one.

The notes below are practical working tips on how to go about navigating venture capitalist conversations. Some of these might be surprising or seem hard to follow. But, in my experience, they’re good medicine.

Read full article via Practical Advice for Raising Early Stage Venture Capital – Michael Fertik – Harvard Business Review.

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Entrepreneurs and VCs: Bubble or Turning the Tables

Hey guys, here is good news!   Check out results of study — perhaps we are really just congratulating today’s entrepreneurs on becoming more savvy!

 Excerpt:  A new study from law firm Cooley finds that entrepreneurs may be gaining the upper hand in VC deals. Or that we’re in a bubble.

Is it a bubble, or is it just a darn good time to be seeking venture financing? Or are entrepreneurs getting savvier?

A new report from Silicon Valley law firm Cooley looks at the specifics of 82 venture capital deals the firm advised on in the second quarter of 2011. Some of Cooley’s findings could be interpreted as signs of a bubble in venture capital financing, but other nuggets suggest that entrepreneurs may be becoming better negotiators.

Here’s what Cooley found:

Read full article via Entrepreneurs and VCs: Turning the Tables | Inc.com.

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7 Reasons Why Venture Capitalists Will Hate Your Idea

Recommended read for all entrepreneurs.  Great information and the questions to ask of your idea and plans BEFORE you launch.

Excerpt: Having witnessed thousands of entrepreneurial pitches as a venture capitalist, I’ve seen the gamut from the good, the bad and the ugly. Of the pitches any VC sees, very few will actually receive funding; there are a lot of factors in that equation, so even for those companies that might be appealing, terms, location, market share, traction and other hurdles sometimes get in the way of signing a check. However, you’ve got no shot at funding if your potential venture capitalist flat-out hates your idea. If your “next great” idea has any of the following characteristics, there’s a solid chance a VC isn’t going to dig it.

Read full article via 7 Reasons Why Venture Capitalists Will Hate Your Idea – Forbes.

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Is Venture Capital Broken? – HBR

This is an interesting article…….  since the outcome of such thoughts can make a major difference in startup and small business funding…. what are your thoughts?

Excerpt……..It’s not hard to see the venture capital industry trifurcating. There will always be top-tier firms who give their seal of approval to a select group of startups. Expect to see continued growth among incubators that support fast-cycle iteration. And in between, look for a rise of companies that take the Google Ventures approach even further to approach the funding of startup companies scientifically. The rest? Well, Darwin has a way of working out such problems.

Read full article…….via Is Venture Capital Broken? – Scott Anthony – Harvard Business Review.

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Marc Andreessen’s Advice for Entrepreneurs : AMEX

Here are insights and advice from a leading venture capitalist……. all entrepreneurs and small business owners need-to-know.  Funding

Excerpt…….”The number one reason that we pass on entrepreneurs we’d otherwise like to back is focusing on product to the exclusion of everything else,” Andreessen told Stanford University students earlier this month, noting that Silicon Valley tends to “cultivate and glorify this mentality.”

Read full article……via Marc Andreessen’s Advice for Entrepreneurs : The World :: American Express OPEN Forum.

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Why You Lose VCs at “Hello” : AMEX

Venture capitalist turned off within the first 8 words out of your mouth……. communications.  Funding

Excerpot……Allison Shapira, who teaches public speaking workshops in the Harvard Kennedy School’s Communications Program and consults with entrepreneurs, interviewed venture capitalists about the hundreds of startup pitches they hear.

“What’s important to you in a pitch?” she asked them.

“Within the first 8 words, I’ve decided whether or not to keep listening,” David Wells of Kleiner Perkins Caufield & Buyers told her.

Read full article…….via Why You Lose VCs at “Hello” : The World :: American Express OPEN Forum.

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The Disruption of Venture Capital – HBR

Venture capital …what has changed…… an important need-to-know for all entrepreneurs and small business owners….funding

Excerpt……….Over the years, venture capitalists have been some of the most ardent students of disruptive innovation. Large pools of capital have been funding risky ventures since antiquity (for example, when the wealthy Marcus Crassus backed an upstart Roman general named Julius Caesar). The industry was born in its current form, however, when the first venture capital firms were founded in the middle of the twentieth century. In a relatively short time, venture-backed companies have grown to account for over 20% of US GDP today. The best VCs have successfully identified major industry disruptions before they occur. Nevertheless, recent attention garnered by start-up accelerators, micro-VCs, and angel investors has led to a new debate: is there a wave of disruption in venture investing itself?

Read full article……..via The Disruption of Venture Capital – Eugene Chung and Maxwell Wessel – Harvard Business Review.

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S.B.A. Readying Program to Invest in Start-Ups

SBA is getting $1 Billion to fund via venture capitalists….. read full article…   Startups funding.

Excerpt……..Mr. Greene said that the S.B.A. hoped to solicit applications from investment companies in April and issue its first licenses by the end of September.

Read full article…….via S.B.A. Readying Program to Invest in Start-Ups – NYTimes.com.

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Small Business Law: Raising Money? Don’t Get Ripped Off

This is good advice for all entrepreneurs and small business owners…..take heed …funding legal 101

Excerpt…..Before you look for venture capital, you’d better have a great venture lawyer

Read full article……via Small Business Law: Raising Money? Don’t Get Ripped Off | Inc.com.

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Available Money and Billions of Internet Users Attract Venture Capitalists

Good read — a recap of the speaker’s and participant’s input……  small business and funding

Excerpt……The U.S. economy is still sluggish, but venture capitalists, who spoke to an audience of nearly 150 investors, students, and faculty at the Stanford Graduate School of Business on Dec. 6, said the outlook for early- and late-state investing is bullish.

Read rull article here……via Available Money and Billions of Internet Users Attract Venture Capitalists.  From Stanford GSB

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How to Pitch a VC: 11 Insider Secrets

The how-to from an expert who has been on both sides of the table…….funding pitches

.Excerpt…….Having been on both sides of the table—many times as an entrepreneur and now as a venture capitalist—I’ve been witness to hundreds of pitches. I’ve been inspired and bored; dazzled and disgusted. There are many articles focusing on how to craft your slide deck, but few that really give you the inside scoop on how to behave in your big meeting. I can tell you from 20 years of experience, if you follow these guidelines you will significantly improve your odds of getting funded.

Read full article……via How to Pitch a VC: 11 Insider Secrets | Inc.com.

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9 Tips for Raising Startup Funds on AngelList

The how-to steps of working with the AngelList for finding a venture capitalist and funding for your small business.

Excerpt……AngelList is an online community that matches startups with investors to streamline the fundraising process.

I’ve personally raised $1 million from AngelList for my startup, and have helped dozens of other startups raise $3 million more. I’ve referred more than 20 startups to AngelList, vouched for a dozen other investors and am ranked as one of the top connectors on the site.

Try a similar strategy by adhering to the following steps.

Read full article…..via 9 Tips for Raising Startup Funds on AngelList.  From Mashable

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A VC Dictionary: What to Say to Potential Investors

Cash management and funding….with venture capital?…. finance-speak is something you need to learn.

Excerpt…..They will consider terminology blunders as a warning sign that entrepreneurs are financially “unsophisticated” or don’t have the financial “bandwidth” to manage their money wisely or report financial results in an accurate way.

Read full article…..via A VC Dictionary: What to Say to Potential Investors | Fox Small Business Center.

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