The Series A Crunch Survivor's Guide. Got a ton of feedback on my email from Christmas Day titled 'There is no Series A crunch.' If headlines, and people's attention spans for them, allowed for completer arguments, the headline could have been expanded to:
Can Public Media Organizations Succeed Seeding Silicon Valley Startups? New Fund to Find Out. Matter Ventures CEO Corey Ford and KQED President John Boland Three media nonprofits — Knight Foundation, Public Radio Exchange (PRX), and KQED (you’re on it, bub, no link required) have announced they’re creating a $2.5 million accelerator fund for selected media startups — of the for-profit variety — to tap.
It’s called Matter Ventures, based in San Francisco’s SoMa district. Prospective candidates will be able to apply at the web site, which went live today. KQED and Knight Foundation are kicking in $1.25 million each to fund the initiative over two years, potentially taking an equity stake in businesses that develop within the program. PRX will help run the project. For A Stranger In Silicon Valley, Success Isn’t Only About Who You Know. Editor’s note: Cherian Thomas is founder and CEO of Cucumbertown, a recipe-publishing platform.
Follow him on his blog and Twitter. For entrepreneurs, it is now both easier and harder to raise capital: easier because of powerful platforms like AngelList; harder if you’re not part of an accelerator or don’t have a strong network. Silicon Valley has more startups than ever before. Black Swan Farming. September 2012 I've done several types of work over the years but I don't know another as counterintuitive as startup investing.
The two most important things to understand about startup investing, as a business, are (1) that effectively all the returns are concentrated in a few big winners, and (2) that the best ideas look initially like bad ideas. What Raising Money Means To Me. What follows is based on my own personal experiences, views and opinions about the world of startup financing.
I’m sharing today because I believe in the educational value of other people’s failures. Here are mine. An Introduction I started mophie over seven years ago. It began very simply: The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand. This article initially appeared on TechCrunch – with a minor update highlighted in red below.
Ah. Convertible Debt. Back in the summer of 2010, I wrote a post outlining why I don't like convertible debt investments.
USV does a fair bit of seed investing and we have never done a convertible debt deal (although we have done bridge loans for our existing portfolio companies). My wife, aka Gotham Gal, does a fair bit of seed investing and she has done her share of convertible debt investments, always with a reasonable cap, but she also prefers a priced equity round. Convertible debt is being discussed again, I suspect because valuations are coming down and that is causing some problems, but also because there are folks suggesting improvements on the structure of these deals.
My view on this is fairly simple: All Revenue is Not Created Equal: The Keys to the 10X Revenue Club. May 24, 2011: May 24, 2011: [Follow Me on Twitter]
Former Piper Jaffray executives launch early-stage investment firm - Minneapolis / St. Paul Business Journal. DotMN — ‘Less TechCrunch & more reality,’ says local angel investor. Nearly two months ago, AMP Partners was introduced to Minnesota’s tech entrepreneurs.
FundersClub. Moneyball: A Quantitative Approach to Angel Investing (Austin, TX -... Why Are B2B Social Media Firms So Hot? Publications VivaKi's Tobaccowala Debugs Mystery Of Agency Survival: 'We Are Cockroaches' 06/14. VivaKi Chief Strategy & Innovation Officer Rishad Tobaccowala channeled his inner Kafka Wednesday, explaining to a gathering of clients, agency executives, entrepreneurs, VCs, and a couple of journalists why ad agencies have managed to survive, and maybe even thrive, despite incessant proclamations that agencies were dying during his 30 years in the business: “The truth is, agencies are cockroaches.”
Tobaccowala, who is known to strike striking metaphors to make a point, likened agencies to roaches, because like the insect, they have proven themselves to adapt and persevere regardless of what is thrown at them. Tobaccowala said his point about agencies’ ability to survive was that they “cannot do it alone,” and must rely on outside “third parties” to help them adapt and develop new business models and services to help their clients evolve their businesses.
A preacher, 500 startups, and a dream to change it all. Dave McClure speaking at the US Embassy in Mexico City.
Photo by David E. Weekly It’s around 8:30 on a warm Friday night in Mexico City, and we’re all milling around a podium set up in the lobby of the private residence of the U.S. Ambassador to Mexico, Earl Anthony Wayne. Dozens of Mexico’s tech entrepreneurs and investing elite are mingling with more than 40 members of Geeks on a Plane, a traveling tech-revue of sorts organized by the Silicon Valley investment group, 500 Startups. Airbnb's first pitch deck. 8 Hard-Earned Insights Into Raising Startup Capital. Approaching investors for the first time is a daunting exercise for any startup. Regardless of whether you’re raising venture capital, approaching angels or still trying to figure out where to get started, it’s critical to stay level-headed about what you’re really pitching - and what it’s actually worth.
The best way to do that is to leverage the hard-won experience of real-world startup. So we asked a panel of eight successful young entrepreneurs from the Young Entrepreneur Council (YEC) about their startup funding successes (and failures) and the lessons they learned. Turns out that while every startup is unique, they share some common difficulties in trying to find just the right strategies and tactics for funding their companies: Fred Wilson: what crowdfunding means for the VC business. For the past couple of decades, venture capitalists have had the upper hand. They’ve had the funding and, traditionally, they’ve held most of the power in the startup ecosystem. But, Fred Wilson, managing partner of Union Square Ventures (and beloved blogger), believes that balance of power is shifting (As noted in Stacey’s take on a similar notion advanced by the Kauffman Foundation earlier Tuesday.) And as it does, venture capitalists themselves must rethink their role.
Speaking to a crowd of entrepreneurs at the Grind work space in New York this morning, Wilson said that since the mid-1990s institutional investors have poured $30 billion into the venture capitalist business every year, but venture capitalists have only been able to figure out how to generate good returns on half of it. (Actually, venture capitalists haven’t seen that much money flowing in since 2007, according to the National Venture Capital Association, which notes the recession dramatically lowered investment.) How to make a cap table. Summary: A cap table lists who owns what in a startup. It calculates how the option pool shuffle and seed debt lower the Series A share price. This post includes a fill-in-the-blank spreadsheet you can purchase to create your own cap table.
DotMN — Dear Minnesota Angel Investor. Sequoia Confirms Existence of “Stealth” Scout Program. Who’s Next? By Sarah Lacy On May 4, 2012 On Wednesday we uncovered a potentially worrying trend of VCs investing in very early stage companies by giving money to network rich, cash poor entrepreneurs — or “scouts.” Ostensibly, the trend has a lot of advantages for the investors involved. Crowdfunding: How Indiegogo Connects Concepts With Cash. Name: Indiegogo. Indiegogo. Startup says what? - Entrepreneur. Startup says what? [Excerpt] Fundraising: From $1,000 To $1,000,000. 500 Startups Raising New $50M Fund, Names 4 New Partners, With 250+ Investments To Date. It’s a big day for 500 Startups — you know, the seed-stage accelerator and capital fund founded by rabble rouser and geek on a plane, Dave McClure.
Back in July 2010, McClure filed for the accelerator’s first fund, raising $30 million to begin officially investing in startups under the new venture capital fund. Aileen Lee Launches Kleiner-Backed Seed Fund - Kara Swisher. Why The JOBS Act Is Good for Startups - and for America. The JOBS Act, passed with overwhelming bipartisan support in the Senate and House and signed this afternoon by President Obama in a Rose Garden ceremony at the White House, is important for entrepreneurs and for the nation overall. Crowdfunding Law Will Turn the Start-Up World Upside Down - Tim Rowe - Voices.
Online-Services Firms Catering to Businesses Look Good Again to Venture Investors. Tide Shifts on Web Start-Ups - Ben Worthen. Calling Bullshit On The Series A Crunch. Editor’s note: Guest contributor Paul Lee is a Partner at Lightbank Capital. Accel forms $100M fund to feed big data apps — Cloud Computing News. So, is venture money drying up or blowing up?