BLOG STARTUPS, VENTURE AND THE TECH BUSINESS
Posts Tagged ‘Fundraising’
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.
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 ...
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 ...
April 23 2010
by Todd Hixon
The View From The Dark Side: #1, Why VCs Are Greedy
[This is the first of a series of posts that attempt to explain how the venture capital business looks from the VC side.] VCs are often characterized as greedy, eg: “vulture capitalists” or (the more contemporary phrase) “not founder friendly”. Like any broad characterization, there is truth and untruth here, and good and bad reasons ...
April 1 2010
by John Backus
Virginia to Entrepreneurs: Start Your Business Here – And Pay No Capital Gains Tax!
Capital Gains taxes on high-tech entrepreneurial startups are going away in Virginia – at least for three years. Founders, Angel Investors, Venture Capital Fund Investors, Corporate Investors to benefit. On Tuesday, March 30th, newly elected Republican Governor Bob McDonnell signed into law House Bill 523 (Senate Bill 428), which provides a 100% capital gains tax ...
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March 16 2010
by Scott Johnson
Top 5 Presentation Mistakes
The presentations I see, for the most part, get a B. Not failing, but noticeably short of excellent. Only once in a blue moon do I encounter an A. It is surprising to me that I don’t see more “A” presentations because: The presenters are high achievers who got A’s in engineering classes at prestigious ...
February 25 2010
by John Backus
VC Tips for Entrepreneurs: Thoughts About Raising Money
Most entrepreneurs raise money to help their businesses get off the ground. Whether from angels or venture capitalists, I see most entrepreneurs making the same mistake. They raise money when they “have to.” There is a better way. With some advance planning, you can raise money, easier, at certain moments in time. Take advantage of ...
February 12 2010
by Todd Hixon
Pay to Pitch?
Should entrepreneurs pay third parties to help raise money? This is a perennial question in the venture world. It comes down to two things: Will the investment in outside help pay off? Will investors see paying for help as a negative factor? There are different kinds of fund-raising help. The main ones are: “investment bankers”, ...
February 9 2010
by Todd Hixon
The Seduction of Venture Debt
Summon up your picture of a VC: insouciant air, expensive casual clothes, youthful with a touch of gray for gravitas, cruising the 101 in a Porsche, thinking about moving up to a Tesla. Does this guy have a sub-prime mortgage? No way, you think! But probably he does, not on his house but on his ...
January 11 2010
by Scott Johnson
Follow-on Capital
I see seed stage investing happening all around me. Angels appear to me to be very active as individuals although I have nothing but anecdotal data to support that. Dedicated funds doing seed investing are gaining traction with LPs who want their piece of the next super-deal. We at NAV do the occasional seed deal, ...
