QUESTION:
Is it better to contact a potential (a former boss of mine who is an investor) next week in the semi-holiday zone when fewer people may be approaching him – or the the first week in January which is psychology a new year, a better year?
ANSWER:
QUESTION:
One of our founders asked, “Is it okay to contact venture capitalists directly or do you need an introduction? I’ve heard you have to get an intro.”
ANSWER:
Mark Greenough
I was having a great dinner recently with a CFO friend of mine as she was lamenting the lack of potential for a liquidity event for her and her company. I couldn’t believe my ears or perhaps it was the excellent brunello that got me a bit riled up. According to Thomson Reuters/National Venture Capital Association, there were 211 exits of venture backed companies in the U.S. via acquisition in the 1st half of 2010. This is on pace to be the largest number in recent memory (2008 and 2009 had 335 and 262 respectively for the entire year). The market has finally opened up; the time to sell has not been this good in a decade.
Mark Greenough
I can’t tell you how many pitch sessions I have sat through where the entrepreneurs show some incredible “hockey stick” revenue increase in years 3-5 in their business plan. Nobody in the room believes the numbers including the entrepreneurs. So why do it?
QUESTION:
I don’t want to waste time on angels who aren’t actively investing. Who are the most active angels and super angels? What’s the best way to find out this type of information?
ANSWER:
QUESTION:
I’m talking to angels about raising a seed round. How long should a seed round typically last? Six months? A year? What do investors expect?
ANSWER:
QUESTION:
I have all these VCs interested in my startup, but none of them will write us a check. They’re all sitting on the fence waiting for someone else to take the lead. It’s so frustrating! What’s the best strategy for closing VC funding?
ANSWER:
QUESTION:
How do I get debt financing and how does it work? I’m thinking along the lines of Silicon Valley Bank and others who debt finance startup ventures.
ANSWER:
QUESTION:
I hear it’s far better to take angel money than VC money. VCs tend to want to kick the founders out and bring in new CEOs. They also have terrible terms and liquidation preferences. Should I simply avoid VCs altogether?
ANSWER:
QUESTION:
I heard VCs and other investors typically require regular audits of the company’s finances. This can be expensive — around $20k to $50k. Is this true and what should a startup do about it when negotiating with an investor?
ANSWER:
© 2024 Founders Space
Privacy Policy | Terms of Use
