Both Sides of the Table

DECEMBER 11, 2022

Starting in 2009 I began writing checks consistently, year-in and year-out. I admit that my writing style back then was a bit more carefree, provocative and opinionated. In a world when LPs benchmark VC performance on a 3-year time horizon from deploying one’s fund (is your 2019 fund in the top quartile!!??) billion fund.

Venture Capital 466

Venture Capital Startup Marketing Pricing 466

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Startup 354

Startup Pricing Equity Venture Capital 354

Both Sides of the Table

MAY 13, 2018

The most important advice I could give you before you set out in fund raising mode is to understand that fund-raising a sales & marketing process and needs to be managed. One of the most important aims of a fund-raising process is to keep similar firms at the same stage of your process. Why 8–10 and not just 3–4?

Venture Capital 332

Venture Capital Funding Startup Sales 332

TechCrunch LA

JULY 19, 2022

million in new funding for its predictive inventory recommendation platform, joining other similar companies, including Zippedi and Inventa. Ghost itself closed on a Series A equity round of $13 million, along with $7 million in debt, in June. The equity will go toward hiring more talent to join Ghost’s 25-person team.

Product 191

Product Funding Technical Review Equity 191

TechCrunch LA

JULY 21, 2020

The pay equity fights that the women’s team has led are still ongoing ( and suffered a setback earlier this year ), but Nortman and Portman saw an opportunity to chart a new course for the league with the combination of both of their support. Image Credits: Angel City. That non-profit is also a partner with Angel City. “In

Writing 171

Writing Los Angeles Equity Startup 171

Both Sides of the Table

SEPTEMBER 8, 2012

I would never as a VC fund a round and then expect somebody else to pay a higher price right after me. The trouble is, nobody has an incentive to agree to write the first check. There is simply no reason for the first angel to write you a check until you have the whole round secure, which is why people herd cats. why buy now?

Pricing 294

Pricing Venture Capital Writing Equity 294

SoCal CTO

MARCH 3, 2011

Or how are you funding the next few milestones? I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this. Do I have to write up the overview? Can you help me get funding? When do you need to have it done by? Are there specs?

CTO Hire 264

CTO Hire Startup Technical Review Development Team Review 264

Berkonomics

MAY 22, 2014

Bill Payne has been actively involved in angel investing since 1980, funding over 50 companies and mentoring over 100 more. The sale of equity in private companies is regulated by the Securities Act of 1933, which requires that the company either register with the SEC or meet one of several exemptions (Regulation D). By Bill Payne.

Writing 199

Writing Invest Entrepreneur Equity 199

SoCal CTO

MARCH 3, 2011

Or how are you funding the next few milestones? I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this. Do I have to write up the overview? Can you help me get funding? When do you need to have it done by? Are there specs?

CTO Hire 259

CTO Hire Startup Technical Review Development Team Review 259

Both Sides of the Table

SEPTEMBER 29, 2013

” And even the venerable Fred Wilson weighed in with how people “ leading vs. following ” in funding rounds play different roles and have different skills. If you know, VCs end up writing sizable checks into their own funds, which is important in better aligning interests. So there you have it. Up to a point.

Venture Capital 356

Venture Capital Invest Course Technical Review 356

Startup Professionals Musings

MARCH 22, 2020

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). That means writing down and signing the terms of the agreement, after making sure everyone understands them. Loans are a safer option than equity. Be professional about it.

Funding 123

Funding Startup Equity Venture Capital 123

Both Sides of the Table

MARCH 2, 2011

I’m sitting at my computer now at 9.00pm writing this – which is an hour earlier than I normally write (there are about 8 women at my kitchen table having a book club (aka excuse to drink wine & gossip so I’m locked in another room writing. Should entrepreneurs have convertible debt or priced equity?

Email 287

Email Blogging Venture Capital Writing 287

Berkonomics

MAY 8, 2014

I am chairman of a company that, as I write this, is twelve years old and has not yet taken a dollar of outside investment. The company has been funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all. Grant writing takes skill and immense amounts of time.

Company 166

Company Companies Writing Education 166

Startup Professionals Musings

JULY 5, 2023

It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective. The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services.

Startup 122

Startup Funding Organization Incubator 122

Both Sides of the Table

MARCH 3, 2013

This is why I am such a big fan of General Assembly both because they’re teaching more tangible skills but also because they’re working directly with employers to fund classes as well as to onboard the more successful GA students directly. We spoke about the disruption of VC through crowd funding. I don’t believe it.

Venture Capital 403

Venture Capital Education Offshore Outsource Development 403

Both Sides of the Table

JANUARY 21, 2010

When to get a lawyer - If you plan to be a venture or angel backed technology company (what I mostly write about) the best time to start meeting and getting to know lawyers is long before you ever start your company. I write about some of the lessons in my post on Startup Mistakes. Many people start companies arse backwards.

Startup 318

Startup IP Southern California Entrepreneur 318

Both Sides of the Table

JULY 15, 2010

We started this week’s show with a Q&A session where I answered viewer questions about fund raising and the VC industry. Heck, stick around and watch me discuss the seed funding debate that is going on right now and what is happening in the VC industry overall.

Venture Capital 210

Venture Capital Seed Funding Pricing Southern California 210

SoCal CTO

JANUARY 5, 2011

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.

Startup 378

Startup Venture Capital Blogging CTO Coach 378

Startup Professionals Musings

SEPTEMBER 30, 2013

Every investor expects to see some business traction, both before and after a funding event. If you have neither, and choose to approach an investor, you will get no attention, and probably never again get a shot at funding with that investor. Now investors will pay attention, since scale-up funding is less risky and has a time frame.

Funding 112

Funding Entrepreneur Startup CTO Hire 112

SoCal CTO

MARCH 12, 2012

I promised I would write this post with some thoughts and ideas on the topic. Here are a few perspectives on the topic of finding technical cofounders: In Building a sweat equity team , Joel on Software tells us: You simply need to network. Here's an example of that kind of email. Go to user groups. Refine your elevator pitch.

CTO Hire 211

CTO Hire CTO Coach Startup Equity 211

Startup Professionals Musings

OCTOBER 10, 2014

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). That means writing down and signing the terms of the agreement, after making sure everyone understands them. Loans are a safer option than equity. Be professional about it.

Funding 101

Funding Startup Equity Entrepreneur 101

Both Sides of the Table

AUGUST 14, 2017

And of course we help with business development introductions and with fund raising events. Boards are not appointed to be founder-friendly lapdogs for the 1–3 founders who start companies and usually own the largest equity positions in the company. Often we are asked to get involved in executive-level recruiting.

Startup 217

Startup Technical Review Equity Report 217

Both Sides of the Table

MAY 15, 2010

We’re staring to get the hang of how to divide the show up into talking about deals but also talking about issues for entrepreneurs during funding. Next Wednesday we’ll have Dana Settle of Greycroft Partners, a New York / LA early-stage venture capital fund. short answer: very, very rarely. But it does happen.

Venture Capital 285

Venture Capital Startup Advertising Redpoint 285

Startup Professionals Musings

JUNE 15, 2013

It’s helpful to think of startups as proceeding through several stages, which I have defined before from a funding perspective. The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services. Marty Zwilling.

Entrepreneur 102

Entrepreneur Funding Incubator Startup 102

Both Sides of the Table

MAY 27, 2013

Understanding where your VC partner sits in their respective fund and where their fund is in the cycle of its investment lifecycle will help you understand your VCs behavior. He did it yesterday, “Mark, I’m going to write a blog post following on from your VC’s aren’t dumb. Rob does it. On steroids.

Tips 365

Tips Email Venture Capital CTO Coach 365

Both Sides of the Table

MARCH 11, 2010

But there are also problems / risks: - the funding environment might change dramatically – there may never be a next round (see: March 2000, September 11, 2001 and September 2008). - there may be major competitive changes in the market that makes your next funding round hard (e.g. How does your brother-in-law feel about that?

Startup 319

Startup Venture Capital Capital Competition 319

Both Sides of the Table

SEPTEMBER 29, 2009

When venture capitalists scale back investing activities it can be very swift and leave many companies that are in the process of fund raising hung out to dry. Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. Why did the VC markets freeze so quickly?

Venture Capital 263

Venture Capital Startup Invest Funding 263

Both Sides of the Table

APRIL 14, 2012

…” I’ll write soon on my views of why I believe Instagram took off as a social network and what I think comes next. You’ve found yourself in a super hot category and – let’s face it – it’s still a very frothy venture capital funding market so you may have loads of VCs chasing you.

Venture Capital 316

Venture Capital Pricing Social Network Acquisition 316

Startup Professionals Musings

DECEMBER 30, 2013

I suggest that there are several important questions before assuming that funding is the gate to your success. Here are some key questions to ask yourself, before asking others for money: Do you really need investor funding to make this work? business entrepreneur focus funding startup' Do you have a viable plan? Marty Zwilling.

Entrepreneur 101

Entrepreneur Funding Training Startup 101

InfoChachkie

JUNE 11, 2012

Facebook had to resolve expensive and time-consuming litigation related to promising early hires senior positions and substantial equity stakes. Steve Jobs – “So we went to Atari and said, ‘Hey, we’ve got this amazing thing, even built with some of your parts, and what do you think about funding us?

Tips 279

Tips Startup Education Entrepreneur 279

Both Sides of the Table

OCTOBER 17, 2019

The first check I wrote was just over 10 years ago into a company called Invoca who just announced a new $56 million in funding led by Scott Hilleboe at HIG Growth Partners. We not only have our Series A funds that can write $500k?—?$15 15 million first checks but we also have three growth funds.

Venture Capital 223

Venture Capital IP Startup Google 223

Startup Professionals Musings

DECEMBER 28, 2018

It’s helpful to think of startups as proceeding through several stages, which I have defined some time ago from a funding perspective. The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services.

Funding 94

Funding Startup Organization Incubator 94

Both Sides of the Table

MARCH 6, 2010

The upside for entrepreneurs is the equity in their business. If you have a $100 million fund you don’t get paid your carry until you return the initial money to your investors and then you typically get 20% of the profits above this threshold. I’ll write about that in a couple of weeks.

Venture Capital 312

Venture Capital Technical Review Startup Entrepreneur 312

Startup Professionals Musings

OCTOBER 12, 2020

It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective. The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services.

Resource 171

Resource Startup Organization Incubator 171

Both Sides of the Table

MARCH 6, 2011

Jody didn’t exactly have an easy time fund raising because he’s not one of the prototypical Silicon Valley funded entrepreneurs. Jody self-funded the company and worked from his spare bedroom in February 2009. EcoMom Makes a Breakthrough in its Search for Funding. EcoMom originally started as SproutBaby.

Startup 292

Startup Venture Capital Blogging Summary 292

Both Sides of the Table

FEBRUARY 24, 2019

When an entrepreneur takes on investors who take equity (i.e. The board is where large equity investors get their representation. I really like it when independent directors write a check into the company. That way somebody who writes $25,000 gets $50,000 worth of stock plus warrants. obviously make an exception.

Startup 187

Startup Writing Venture Capital Oracle 187

InfoChachkie

MAY 16, 2011

5) Allow Partners To Write Your Agreements. Thus, I will let my Big Dumb Company (BDC) partner write our agreement. Ask them to accept equity in exchange for all or a portion of their overall compensation. In Beware The Consultant , I describe how you can structure such equity-based relationships. Fallacy: Yes.

Startup 242

Startup Outsource Development Outsource Sales 242