BLOG STARTUPS, VENTURE AND THE TECH BUSINESS

Posts Tagged ‘Fundraising’

October 14 2011
by Todd Hixon

How Entrepreneurs Can Survive and Prosper In The Political Crisis

We’re in the midst of a political crisis that has been a century in the making:  in the U.S. and Europe the bill has come due for a welfare state that demographic trends and escalating health costs make unaffordable, which has been financed with debt and future promises.  The political system is mostly seeking ways to ...

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September 14 2011
by Todd Hixon

What the Downgrade Means for Entrepreneurs: Part 1, What’s Happening

A downgrade of the U.S. sovereign credit rating has never happened before, so it’s worth examining what it means for entrepreneurs.  This is the first of three posts, focused on what’s happening.  Part 2 will look at the impact on entrepreneurs and the venture market, and Part 3 will suggest how entrepreneurs can survive and ...

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May 31 2011
by Scott Johnson

Way Too Early – On Market Timing

Market timing is a necessary (but not sufficient) condition for venture success.  Obvious, right?  The problem is that timing is obvious only in retrospect.  Predicting how markets will evolve is an art, and probably is the single most important job of a venture firm.  Boiled down to its essence, our role is to help companies ...

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May 20 2011
by Todd Hixon

The More Things Stay The Same

… the more they will soon change.  This inversion of the famous saying applies very well to venture capital.  The VC business has long, strong cycles.  Everything goes in one direction for a few years, and the momentum seems inevitable, until it sharply reverses. 2011 is a time of extremes in VC.  The industry has ...

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April 27 2011
by Scott Johnson

Color, Valuations, and the Winner’s Curse

My friend Kevin Lewis is a professor at Duke Business school and he sends out a feed of interesting abstracts describing recent research that I sift through every  day or so.  Today I found this one: The Bidder’s Curse Ulrike Malmendier & Young Han Lee, American Economic Review, April 2011, Pages 749-787 Abstract: We employ ...

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January 21 2011
by John Backus

There’s a Slide For That!

The purpose of this blog post is to help entrepreneurs avoid looking “canned” when they pitch VCs.  Every entrepreneur is passionate about their business, and a pitch to a VC is an important moment in the life of most startups.  I hope that this post helps entrepreneurs see their pitches through our eyes – and ...

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October 12 2010
by Scott Johnson

Why I Invested in Fashion Playtes (Again)

Fashion Playtes recently announced an oversubscribed up round led by our friends at Fairhaven Capital.   The company has a platform enabling custom clothing design by tween girls (ages 6-12). It is a simple concept really.  Girls can go on the web and choose different embellishments to be sewn onto dresses, shirts, pants, bags, etc. ...

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July 14 2010
by Scott Johnson

The Six Step Venture Capital Investment Process

Every venture firm has pretty much the same six step process. It is not hard to understand, and every firm puts their own spin on it. But you can pretty much count on these six steps occurring in sequence before you will see any cash in your bank account.

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June 11 2010
by Todd Hixon

The View From The Dark Side #2: Participating Preferred

Entrepreneurs often dislike participating preferred stock.  It can be a contentious term at investment time, and I often sense resentment at exit time when investors “get $XX million off the top”. “Participating preferred” refers to convertible preferred stock with a special liquidation right: preferred stock holders receive return of their investment, and then they share ...

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May 19 2010
by Todd Hixon

Venture Lite

The “Cloud” and other forces have slashed the cost of starting an IT company  and produced a surge in seed investing.  We discussed this in a segment of our annual meeting last week, which was attended by professional limited partners (“LPs”), individual LPs, and entrepreneurs, as well as the NAV partners.  There was strong energy ...

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