The game has changed. In April, venture capitalist Bill Gurley wrote an essay crystallizing what many VCs had been talking about for months.
The game has changed. In April, venture capitalist Bill Gurley wrote an essay crystallizing what many VCs had been talking about for months.
Even in Silicon Valley, the home of the ever-present origin story, Chamath Palihapitiya has a pretty incredible narrative. The Sri Lankan immigrant escaped a civil war in his homeland before eventually landing a job at a new company called Facebook.
This post is all about the only thing that matters for a new startup. If you look at a broad cross-section of startups -- say, 30 or 40 or more; enough to screen out the pure flukes and look for patterns -- two obvious facts will jump out at you.
Every startup I see invariably puts up a competitive analysis slide that plots performance on a X/Y graph with their company in the top right. The slide is a holdover from when existing companies launched products into crowded markets.
Few investors can match the track record of investing performance that Warren Buffett has achieved, and longtime shareholders of Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) know firsthand how successful long-term investing can result in life-changing wealth.
Which 20 venture capitalists — the investors who unearth the tiny start-ups that turn into tomorrow’s behemoths — are on the winningest streaks? To identify today’s top venture investors, CB Insights, a research firm that follows the venture capital industry, produced a data-driven list.
Who is the man behind some of the most innovative companies in the world, including Tesla, SpaceX, Planet, D-Wave, and Synthetic Genomics? His name is Steve Jurvetson, and if you’re a tech enthusiast, then you’re intimately familiar with his daring venture capital work.
Chris Sacca's signature cowboy shirts make the trip to his new Montana home. (Credit: Jamel Toppin for Forbes) Alex Konrad , Forbes Staff Covering venture capital, software and startups This story appears in the April 13, 2015 issue of Forbes.
I started angel investing almost by accident, which sounds strange to say. Who “accidentally” invests tens of thousands of dollars into highly speculative ventures? Well, I did. A friend introduced me to Clayton Christopher, who was raising money for his new liquor company Deep Eddy.
Editor’s note: Manish Goyal is the senior manager and Bharat Ramnani is head of business of valuation and advisory services at Aranca. Do we have a ticking time bomb on hand? The debate over whether Silicon Valley is sitting on another tech bubble rages on.
I remember my first meeting with the chairman when I arrived at Leicester City this summer. He sat down with me and said, “Claudio, this is a very important year for the club. It is very important for us to stay in the Premier League. We have to stay safe.” My reply was, “Okay, sure.
A few months ago, my friend Tim took a new sales job at a Series C tech company that had raised over $60 million from A-list investors. He’s one of the best salespeople I know, but soon after starting, he emailed me to say he was struggling.
It was the middle of the night when the jangle of his cellphone woke Sanjay Khajuria from a deep sleep.
On June 26, 2008, our friend Michael Seibel introduced us to 7 prominent investors in Silicon Valley. We were attempting to raise $150,000 at a $1.5M valuation. That means for $150,000 you could have bought 10% of Airbnb. Below you will see 5 rejections. The other 2 did not reply.
Venture capital isn’t a monolith, but startup investors are compared to lemmings for a reason. Once a trend gets hot, every firm needs to make a play, or come up with a good excuse for missing out.
Consciously or not, founders’ attitudes toward money play an enormous role in how they run their startups. These attitudes shape whether to bet on a new line of business, how much to charge a customer, how to handle investor capital, even how to talk to employees about pay.
You’ve probably been told the “golden rule” at some point in your life, but it’s not always ideal for those times you want to ooze charisma. That’s where the “platinum rule” comes in. It may seem like some people are born likable, but everyone is capable of developing charisma.
If you haven’t yet heard of venture-builders — also called tech studios, startup factories, or venture production studios — let me introduce them to you: They’re organizations that build companies using their own ideas and resources.
SAN FRANCISCO — For the last few years, the spotlight in start-up investing has largely shone on those who poured money into a company when it was already well along on a growth path. It turns out that spotlight may have been misdirected.
Let’s just get this one out of the way. The seductive narrative of Silicon Valley stars a genius-hero who goes on a journey, overcomes myriad obstacles, has a flash of insight and is rewarded by wise and benevolent investors with Series A funding.
Early on a summer morning in Manhattan’s Upper East Side, dozens of mostly young, svelte women file into a quiet, candlelit studio where they mount gleaming stationary bikes. Soft clicks can be heard as they fasten their shoes to the pedals.
Why Raise Money – When to Raise Money – How Much to Raise? – Financing Options – Convertible Debt – Safe – Equity – Valuation – Investors Startup companies need to purchase equipment, rent offices, and hire staff. More importantly, they need to grow.
Most investors are trying to get a handle on initial coin offerings, which have begun racing through the tech ecosystem like a fire, veering off in multiple directions and causing excitement and confusion and some degree of terror as they grow in number.
Most entrepreneurs focus on the hard economics of the deal when they negotiate with investors: percentage ownership, valuation, preferences and other terms. Those things are all important — but so is the soft stuff, especially in today’s volatile market.
Highly addictive, horribly debilitating, unfortunately pervasive, and freaking delicious. If I had to point to ONE culprit to our country’s expanding waistlines and rapidly deteriorating health, it would be sugar.
FreeBSD is a fast, secure, modern Unix-like operating system with a fantastic community, great documentation, and powerful technologies like ZFS and LLVM. It’s my operating system of choice for everything from my i7-2600k desktop to my home router to my ARM plug computer jukebox.
Taking a short break from forex, we bring the story of Chris Sacca and how he went from a $4 million negative balance trading stocks, to hustling his way to pay back his debt, to working at Google and eventually becoming an early investor in Twitter.
When people hurt themselves lifting heavy things, it's usually because they try to lift with their back. The right way to lift heavy things is to let your legs do the work. Inexperienced founders make the same mistake when trying to convince investors. They try to convince with their pitch.
My previous post was titled Venture Capital Firms Are Too Big. That post provides one important piece of data necessary to answer the really important question of why the size of venture capital funds matters to angel investors and entrepreneurs. This post describes the second key element.
Joe Bower and Lynn Paine “had me at hello” (to quote Jerry Maguire) with their new HBR article, “The Error at the Heart of Corporate Leadership.” Laying out their data, they find that long-term oriented companies create more financial value and more jobs.
Great startups don’t fund themselves. Raising money from investors for your startup is challenging at any stage and requires a great pitch, even for experienced founders with significant traction in their company.
Editor’s note: Andy Rachleff is President and CEO of Wealthfront, an SEC-registered online financial advisor.
A recent article in The Economist noted that fintech is “arguably the hottest spot in a bubbly funding environment for startups.” For the last few years, investors have dumped remarkable amounts of money into fintech startups.
As Rodgers explained via phone, it can only be a good thing if venture capitalists reset their expectations. As he points out, digital health still lacks a success story of Google or Apple proportions.
Figure out what you're going to report each month - this should probably be your growth (in revenue or users), your cash/burn, what you need from investors and a qualitative measure of how things are going. As your business matures, these metrics may grow and shift, but stay consistent.
The world of investors is a foreign one to most hackers—partly because investors are so unlike hackers, and partly because they tend to operate in secret. I've been dealing with this world for many years, both as a founder and an investor, and I still don't fully understand it.
Every entrepreneur knows that investors want to see a business plan before they invest money in a startup. Unfortunately, many entrepreneurs wrongly believe the primary purpose of the business plan is to document how you plan to grow.
Geoff Ralston, Y Combinator Partner, on preparing for and pitching at Demo Day. For weekly recaps of The Macro, sign up here. In 2005 Y Combinator held its first Demo Day. Eight companies showed off their products and sold their vision to an audience of about 15 investors.
Shortly after presenting her start-up to potential investors at a conference, Nancy Hua was bombarded by eager suitors. A little more than 48 hours later, the Silicon Valley entrepreneur had amassed about $2 million from wealthy individuals known as angel investors.
Preparing for an investor presentation can be a pretty daunting task. Whether it’s your first time sending a pitch deck to investors or you’re presenting at Techcrunch Disrupt in front of 5.000 people, a solid structure is fundamental for a coherent and commanding presentation.
Everything you write should serve one of two purposes: help you or inform the investors so they trust you and can help you in the future. These people are not your bosses. Start the email by reminding people what you do. Many angels and VCs get a ton of email and work with a lot of people.
Data and creativity can work really well together. Don’t believe me? On February 1, 2013, a TV series called House of Cards debuted on the video streaming service Netflix. It proved an immediate hit. Two years later, it has a nine out of 10 rating from more than 275,000 reviewers.
I have financed nearly 50 early-stage companies and the question of proper valuation comes up in every financing. There is the obvious tension: Generally speaking, the existing shareholders would like the highest valuation possible, while the new investors would prefer the lowest valuation.
Angels, venture capitalists, private equity firms and mutual funds all evaluate investments on the same four basic criteria. At the various stages of a company's evolution from brilliant-insight baby to billion-dollar behemoth, those investors will weigh your attributes differently.
You’re excited to start a business. Maybe you have an idea, or you’re just fascinated with the idea of launching and growing your own enterprise. You’re willing to take some risks, like leaving your current job or going without personal revenue for a while.
Last Thursday, hundreds of Facebook shareholders at the company’s annual meeting in Menlo Park, California listened politely as top executives discussed the social media giant’s performance metrics and goals–until Natasha Lamb got up out of her chair and stood to face the board.
Lecture Transcript: http://genius.com/Tyler-bosmeny-lectu...Three segments in this lecture:Tyler Bosmeny, founder and CEO of Clever, starts off today's lecture with an overview of the Sales Funnel, and how to get to your first $1 Million.Michael Seibel, founder of Justin.tv and Socialcam and Partner
TL;DR:When thinking about the optimal $ number for your next financing round, keep in mind that investors typically expect the valuation to be ~3–4x of the new funds raised, that your round should be ~5x more than the previous one and that you need to get ~15 months runway from the new investment.
Of all the advice I have given founders over the years, one of the most important ones is to make sure they do reference checks on their prospective investors. When founders do their homework on investors, they make informed choices about who they will be working with for many many years to come.
This article is by Paul Arnold, an angel investor and startup advisor. We scribble notes on an already crowded whiteboard, surrounded by the buzz and hustle of one of San Francisco's popular co-working spaces.
Turning 30 just got a lot scarier. So says the research arm of McKinsey & Co. in a new report that argues that investors of all ages need to resign themselves to diminished gains.
Most entrepreneurs would kill for two minutes with Chris Sacca. The guy has an investing record that rivals Warren Buffett's--he's invested in winners such as Twitter, Kickstarter, and Uber--and he can tell within minutes if a startup has potential.
How an extreme libertarian tract predicting the collapse of liberal democracies – written by Jacob Rees-Mogg’s father – inspired the likes of Peter Thiel to buy up property across the Pacific by If you’re interested in the end of the world, you’re interested in New Zealand.
I started angel investing almost by accident, which sounds strange to say. Who “accidentally” invests tens of thousands of dollars into highly speculative ventures? Well, I did. A friend introduced me to Clayton Christopher who was raising money for his new liquor company Deep Eddy.
Are you ready to present your business idea to the wealthy investors on the Shark Tank? Just remember that the five successful Sharks sitting across from you (or Dragons in the UK, Lions in Finland, or the original Tigers in Japan) were once in your shoes, and have al
I obviously don’t speak for all investors. But in my experience as an entrepreneur and now spending my time amongst investors I can generalize that almost all VC investments in early stage technology & Internet investments come down to just four key factors.
One of the most frequent questions I get from founders, and one I had myself when I was founding companies, is “When should I approach investors?” [ Click to Tweet (can edit before sending): http://ctt.
Despite the click-baity title, I mean it. I believe that in 2 years, no investor is going to be explicitly looking to fund AI-powered startups.
I have a great idea but need money to make it happen. How do I network with angel investors? Where do I make the connection? And what's the best way to reach out?In a new series from This Week in Startups, Jason Calacanis tackles common questions in Startup Basics, brought to you by WSGR. As a seria
Entrepreneurs need to be prepared when pitching their startup companies to angel investors by anticipating the questions they will receive. The failure to have thoughtful and reasonable answers to these questions will decrease the likelihood of the entrepreneur’s company getting funded.
Register for “How to Work with Your Advisors, Board Members, and Investors” on November 12 at 6:00 pm at 1871 to learn more about this and other topics on our blog. As an entrepreneur raising capital, you have many options on what type of round to pursue: equity, safe, or even convertible debt.