Overview Of Fundraising Stages

Typically a company raises numerous rounds of capital through its lifetime. While there are not rigid rules about the fundraising stages, I have attempted to characterize these stages below. Note that these stages reflect the IT space and can differ greatly in other sectors.

Implications Of How A VC Is Funded: Diverse LPs

In my post, How A VC Is Funded, I listed four way in which VCs obtain capital to invest in startups. Each of these four sources of capital has slightly different implications for entrepreneurs.

What To Name Your Company

It is getting more and more difficult to find good names for companies. The URLs for most common words are privately owned and often carry a hefty price tag. As a result, many entrepreneurs are now in the business of creating words. This can work really well for startups, but only…

VCs Are Setup To Be Bad Guys

There is a lot of animosity towards VCs, even the good ones.

The industry is designed in such a way that forces them to be portrayed as bad guys more often that not. In order to do their jobs well, most VCs are forced to fund less than 1% of the…

High Valuations Can Put Entrepreneurs At Risk

People always want to get the best deal they can. For entrepreneurs this typically means getting the highest valuation when raising money. The higher the valuation, the less of the company that the entrepreneur will sell to VCs when taking an…

A Quick Note

Expect posts on Monday, Wednesday on Friday as usual.

I’m heading off to India tonight for a little adventure. While I’m gone posts that I have already written will be automatically posted. Since I won’t have access to the Internet, the new posts won’t be integrated into table of…

Take Seed From VCs To Get Them Hooked

Entrepreneurs sometimes don’t position themselves to take seed money from VCs. Some don’t think to reach out to VCs that do seed investments and others avoid VCs at this stage.