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VC approach and process (finance)

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Begging and Choosing a VC http://blog.redfin.com/blog/2009/04/begging_and_choosing.html I still read tweets and blogs about how to make a VC moan with pleasure or lose his mind or do whatever he is supposed to do, but a VC relationship is more of a marriage than a one-night stand. Yes, you need a mission statement that fits on the back of a business card, a snapshot of your financials and the blue-bottle magic of an insanely great demo — which I have to admit should have the intensity, the lack of antecedent, the awkardness and brevity of teenage sex. But after that it seems obvious that you just want to have a conversation about the business.

Comparing the demo with teenage sex, and the VC relationship with marriage...so how would he characterize an IPO? ;) by PED Sep 28

The Arrogant VC: A View From the Trenches (full length version) http://www.freddestin.com/blog/2009/12/the-arrogant-vc-a-view-from-the-trenches-full-length-version.html Many investors appear to be " vague on their decision and engagement process , which tends to be liquid".

In the past I’ve written on the topic of “ Raising Venture Capital ” but today I’m starting a new series called “ Understanding VC’s .” http://www.bothsidesofthetable.com/2010/04/01/understanding-vcs-where-are-you-in-their-flightpath/ Understanding VCs – Where Are You on the Flightpath?

SEOmoz's Venture Capital Process - via BigStartups.com The requested URL /n/172 was not found on this server. http://www.bigstartups.com/n/172

http://www.feld.com/wp/archives/2009/10/its-not-my-company.html So – to all my friends out there in VC-land – let’s try to change the language. Some of the VCs I respect the most – like Fred Wilson – diligently refer to investments they make as “portfolio companies” (as in “our portfolio company X"). I often refer to them as “our investment” or “our portfolio company”. It’'s NOT the VC's company, never forget

http://www.entrepreneur.com/article/200708 This is especially annoying when he actually hasn't done much of anything except go to business school and manage to land a job at a VC firm. If you find yourself working with this type, quickly enlist a great venture capitalist, either within the same firm or through one of the co-investors, to help you out. Spot the good from the bad VC

A fair view of how the relationship between VC and entrepreneur should be by wallen Apr 24

http://dondodge.typepad.com/the_next_big_thing/2005/12/the_vc_funding_.html Overview of process I get lots of questions about the VC funding process, how to be successful, why it takes so long, what to expect, etc.

"saving the demo for the end" for the first meeting? Isn't the product at the core of everything? by PED Sep 28

Short overview of overall process by wallen Mar 1

http://ricksegal.typepad.com/pmv/2005/12/inside_the_proc.html Detailed process One question that comes up is about the VC process and what to expect, timing, process, etc. I’ve put together this long entry in an attempt to give you our process in the hopes it can help with your expectations.

Details from the previous pearl. You can skip it if you don't want to know the details by wallen Apr 24

If a VC partner can sit on (tops) 8 boards and all the deals were like this, we’re talking about less than $20MM invested per partner. How much to raise? http://altgate.com/blog/2008/08/deciding-how-mu.html

Ah yes and it's a type of convertible by wallen Sep 29

PED when you have diificulties raising a full round or timing is not good, your current VC's will do a "bridge loan" to give you a few months cash. Usually the valuation of this bridge loan is set on the valuation of the next round... and often founders get washed out in the process by wallen Sep 29

Unsure about what a bridge loan is (obligation convertible?) by PED Sep 28

http://www.avc.com/a_vc/2006/12/web_20_is_a_gif.html Social web funding "curve" Much of that story has changed in the past six years. The bubble burst and it was the best thing that could ever have happened.

http://www.startable.com/2008/07/23/valuation-creation-milestones-key-to-success-for-venture-funded-startups/ To achieve what ? So, I’m still a young VC, and there are likely other things that can and do happen that I just haven’t seen yet.

Think through what you can achive with that money and iterate back to the amount if the answer is not satisfactory by wallen Mar 18

http://www.startable.com/2008/10/06/financial-models-not-as-attractive-as-fashion-models-but-still-useful/ Models help surface tradeoffs In other words, venture capitalists want and need to make investments in promising technology companies… but when the market keeps falling by 300+ points day after day even the most risk loving investors can have dangerous conservative thoughts. You, as an entrepreneur seeking venture capital funding, can combat this by signaling to the VC that you will be a respectful steward of their investment. One of the best signaling factors you can create is through a realistic financial plan.

You need to fit in VC strategy But both thematic investing and thesis driven investing are better than a generalist approach because they both promote domain expertise which is critical to building a sustainable investment advantage. I think "generalist" or "opportunistic" investing is likely to underperform domain expert driven investing in all but the most turbulent markets. http://www.avc.com/a_vc/2009/11/thematic-vs-thesis-driven-investing.html

Why is your team uniquely qualified to win? http://www.garage.com/resources/writingexecsum.shtml Sell, Sell, Sell !!! Exec summary to start

http://venturehacks.com/articles/elevator-pitch Before Ning, I started Netscape (acquired by AOL for $4.2B) and Opsware (acquired by HP for $1.6B). Elevator Pitch

What should I send investors? Part 2: Deck - Venture Hacks

VCs and exec summaries - a VC view

Another view on exec summaries by wallen Mar 18

A CFO recipee on exec summary

And another one in a powerpoint format (vs. word for the others) by wallen Mar 18

2nd selling point: 1st meeting pitch

Another view on meeting pitch

How to Change the World: The 10/20/30 Rule of PowerPoint

Who Should Attend Your VC Pitch?

When to go and see VCs?

Funding seasons?

Not really

WTF is Traction? A 6-Step Relationship Guide to VC | Both Sides of the Table

Fred Destin: Three things you should never tell a VC when fundra

Another view

Retro: My Favorite Blog Post on Raising VC

Some typical VC objections

Practical tips for the pitch

And some others

Interesting but tends to treat the VC as the "king" in this process. Whereas it's a 2-way street. by wallen Mar 18

Banned VCs by The Funded

Careful with VC seed programs

Actually I don't see any value-add to this programs. An entrepreneur can get seed money from other sources and by doing so keep options opened. by wallen Nov 3

So A Blogger Walks Into A Bar…

Super Angel collusion

Angel collusion

Another selection

Obviously less pratical than in a pearltree... by wallen Nov 10

4 topics coverred: 1) an overview of the overall process, 2) the key question - how much money to raise for what ?, 3) pitch documents and 4) some practical tips by wallen Mar 18