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01 Apr 09

Colorado Venture Capital Firms

www.concentric.net/vc.html - Preview

vc denver investor

Colorado Venture Capital Firms:

29 Oct 08

Information Arbitrage: Climate Update: Early Stage Investing

www.informationarbitrage.com/...forecast-for-ea.html - Preview

venture vc crash

larger funds ($100 million+) I know and work with are pulling in their horns
doesn't appear to be much of an appetite to do new early stage deals.
14 more annotations...
- IPO market is closed and times to exit could be extended from 3-5 years to 8-10 years and beyond.
- Smaller funds,
- plenty of dry powder (both financially and managerially) to both support existing companies and to deploy in new deals and are seeing more deal flow than ever. So while they are clearly raising the bar for investment and competition for VC capital is intensifying, many view the current malaise as a chance to invest in great businesses at attractive prices
- All VCs, whether large or small, are saying that current cash should be husbanded, with the goal that it should be sufficient to support the business until cash flow breakeven
- "In the end you will succeed because of what you DO spend your money on."
  Surely time is right.
- LIQUIDITY CREATES OPTIONALITY. That means having the chance to accelerate growth in the face of weakened competitors, to step up advertising and promotion when others can't afford such expenditures and to hire key talent at better prices to shorten release cycles or to sell more aggressively.
- angels who "dabble," e.g., aren't professional angels or "super angels" as I've referred to them in the past, are generally shell-shocked and backing away.
- this means for the entrepreneur is that it will surely be harder to put together those "friends and family" rounds, as the dad next door who was willing to toss in $50k in April is licking his wounds from his equity portfolio dropping by 30%. But while the competitive environment for capital has intensified the money is there, it just happens to be in fewer, more concentrated hands
- Be in the jet stream; don't be at the edge. Get in the middle of "directional optimism."
  What David was saying is to avoid being a feature, an add-on. Be right in the middle, be relevant. Be something that squarely addresses a client problem. Don't be afraid to go for it. Because if you don't, you will not succeed.
- Get your product into customers hands ASAP - NO SCIENCE PROJECTS - and with total transparency.
  In essence, don't be afraid to look stupid, don't be afraid if it breaks. Be honest with a client as to where you are and what you are trying to accomplish. Take their feedback seriously. Rapidly iterate on the product. And get it back out in front of them. Use rapid iteration to FIND THAT CUSTOMER.
- Overcommunicate with your team in times of turmoil.
- Those that did share a lot often found that team members came up with solutions better than the CEO, and were "pre-socialized," helping to allay a CEOs fear of having to fire people, cut salaries, etc.
- Listen to customers and data. They are the two keys.
  While David acknowledged the value of his Board and other smart people in his orbit, at the end of the day the ultimate guideposts of progress are customer feedback and data around usage. Little else matters.
- Be and "AND" culture
  In short, always be raising money until you never have to raise it again, and build product at the same time. Those who say raising money is a distraction to building product just don't get it. You have to do both AND do them well. It's all about the AND.

19 Oct 08

YouNoodle | Welcome to YouNoodle!

younoodle.com - Preview

startup valuation prediction vc funding

YouNoodle is a place to discover and support the hottest early-stage companies and university innovation.
We provide business competition, events, and mailing list features for real-world startup communities.
What will your startup be worth in 3 years?

07 Nov 07

Noam Wasserman's "Founder Frustrations" blog: Golden Handcuffs and Vesting: Early Analyses

founderresearch.blogspot.com/...ndcuffs-and-vesting-early.html - Preview

vc venture

Anything less than three years of vesting in front of anyone on the team on an early stage deal starts to get very risky. I've never done a 1 year vest thus far.
In the case where an individual is brought in as CEO 3-4 years into a company's existence, we are often stuck with giving him/her full vesting on the unvested shares on a double trigger. Reason being that a strong CEO, who has been through the fire before, knows the game and will make this a centerpiece of negotiation.

24 Sep 07

Innovation Investment Fund (Round One and Two)- Interim Evaluation - Fact Sheet

www.ausindustry.gov.au/...content.cfm - Preview

funding iif nicta vc

support the provision of early stage capital, including seed, start-up and early expansion stages, to new technology based firms; to facilitate the creation of a self-sustaining, early stage technology based venture capital market; to develop experienced early stage venture capital fund managers; and to establish a revolving or self-funding program.
IIF is providing $358.4 million to achieve these objectives, of which the Australian Government is contributing $220.7 million and the private sector $137.7 million
2 more annotations...
- delivered through nine private sector venture capital funds
- one very successful exit from the internet search company, LookSmart.

31 Jul 07

Redeye VC: Bridge Loans vs. Preferred Equity

redeye.firstround.com/...bridge_loans_vs_1.html - Preview

bridge convertible vc

typical convertible note allows an investor to convert from
debt into equity at some discount to the Series A price (typically 20-40%)
venture round will close within the next 60 days.
3 more annotations...
- the
  discount (or warrant) coverage increases over time
- prevent
  the company from pre-paying the note without the approval of the noteholders
  (otherwise I could get redeemed for interest only without converting into the next
  round); (2) provide a pre-specified
  payment in the event of a change of control prior to a venture round (so if a company
  gets acquired before the note converts, the note holders get a return of X);
  (3) put a cap on the amount of additional debt a company can take (so you don't
  end up with a company that raises millions of dollars via bridge loans); and
  (4) provide basic protective provisions.
- In addition, if I'm leading the seed-round, I
  also ask for a maximum conversion valuation -- so that I'm protected if the
  Series A valuation is dramatically higher than I expected.

Startup Company Lawyer

www.startupcompanylawyer.com/...3 - Preview

bridge funding terms vc

I think that if there is a bridge loan after a Series A financing, the investors should receive the same level of representations and warranties that the previous Series A investors received.

15 May 07

Charles River Ventures’ Angel Experiment: First Nine Investments

www.techcrunch.com/...eriment-first-nine-investments - Preview

early stage funding vc venture

When Charles River Ventures announced its Quick Start program last year to provide a few hundred thousand dollars to startups on an expedited basis, it caused minor ripples in the Angel funding market.
CRV is doing very well overall. They say their 2000 fund will return 2-3x to limited partners, an excellent return by any measure, particularly given the 4 year nuclear investment winter from 2000-2004.

Early Stage VC Investing

www.pehub.com/wordpress - Preview

early stage funding vc

Early-stage investors are moving down the road and investing more and more of their funds in later-stage companies.
In 1996, 42% of all venture dollars were invested in Series A. Ten years later, that figure is down to 20%. Meanwhile, the percentage of money invested in Series B or later has risen from 56% in 1996 to 73% in 2006 (note that seven percent of capital deployed in the first half of 2006 went to restart financings – another post in itself but also a clear sign that the aftermath of the bubble is still with us). Later-stage investments alone have risen over the last 10 years from 33% of venture dollars invested to 49%.
3 more annotations...
- time-to-exit has lengthened considerably over the past decade, and not everyone has the ability to be patient and wait for the liquidity event to occur.
- given the large size of many venture funds, it’s just not a viable model for them to invest $2 million in a first-round financing and commit 10-15% or more of a partner’s time working with that company over the five-to-seven years it may take to reach a liquidity event.
- The average acquisition price is $92M.

14 May 07

Ask The VC - What Are Standard Terms and Valuations?

www.askthevc.com/..._are_standard_terms_and_va.php - Preview

funding term sheet vc

“what are standard VC deal terms?”

12 May 07

TheFunded.com: The Resource for Entrepreneurs.

www.thefunded.com - Preview

funding vc

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