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Advice from the Kleiner Perkins Legend

RedHerring's views on the leading sectors of investment opportunity: legacy integrators, linux, content providers, email mgmt, new breed of mutual funds, auctions, and networking

Alan Taetle explores the dynamics of how VCs interact

since high-tech companies frequently fail, it's useful to study and understand how and why they fail -- learning from the failures that surround us becomes the critical evolutionary behavior (slow fail, chasm trap, tornado dive, dead zone)

gives overview & history, stats, A-Z guide, trends, profiles, etc.

Editor's Note: probably quite dated by now...

describes Offroad Capital, a pioneer in online private equity placements

discusses VC statistics for 1999 and also the rivalry between VC research firms Venture Economics and Venture One

Venture capitalists do more than write big checks to entrepreneurs. Sometimes, they go out of their way to defend their investments from rival startups.

Note: Business 2.0 is now part of CNNmoney and some older articles are no longer available

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In the Internet Economy, the right B-plan isn't a B-plan at all, but a great 8-point startup story (inc. business case, customer, solution, alternatives, accomplishments, background, company details and basic financials)

To understand venture capitalists - and get them to open their wallets for you - is as simple as understanding greed and fear, says Sanchez Capital Partners' Gene Lowenthal.

How to hire management who attract venture capital

incl. Too Much Info, Hiding Weaknesses, Distribution Channels, Competitive Analysis, Legal Entanglements, Assessment of Risks, and Financial Projections

part of Red Herring's 10 Trends 2000 special, this article talks about the increasing competition among VCs to fund a limited supply of good ideas and teamsand the associated implications and strategies

third part of a section highlighting VCs and Hi-Tech; discusses what VC's want, first round financing, structuring, second round financing and IPO;

Guy Kawasaki (head of Garage.com) gives 10 tips on how to seek money (e.g. look for value, not valuation).

short article talks about typical structure for venture funding

article highlights Dot Edu, a new VC firm with its roots in the academic world. Also discusses Information Technology University (ITU) and UniversityAngels.com

Bill Reichert offers a top ten list of myths and realities that are guaranteed to raise someone's ire.

(find part II at http://www.herring.com/index.asp?layout=story&channel=40000004&doc_id=900014290)

This .pdf BRIE working paper provides a basic history, overview and expanded discussion about venture capital.

Recently, three different research groups that track venture investing came up with as many different conclusions about the industry. Why? Yes, methodologies differ. But more importantly, each firm defines venture capital differently.

Red Herring looks at business incubators in light of the Aberdeen Group's ongoing study of the crowded field and its prospects (they say only 30% will succeed).

Article talks about how VCs are treating their admin staff members in wake of the talent crunch.

Article focuses on the early (angel) stage investing when traditional valuation methods are of limited value. Discusses the idea of a bridge loan with convertible warrants based on a Series A round.

Find a wide selection of interviews with business luminaries in our Interviews Section

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No, it's not the person behind Benchmark's $2.5 billion payoff with eBay. Try Kleiner Perkins' Vinod Kholsa, who parlayed a less than $5 million investment into Juniper Networks into shares worth more than $8 billion.

As the biggest technology vendors increasingly act as venture capitalists, what are they getting in return?

VCs are supposed to earn their substantial keep by identifying promising opportunities and turning them into profitable businesses. Following the pack would seem to undermine the very principle of venture investing. Yet VCs have largely mirrored the public markets, first pouring irrational sums into Net retailing plays, and then moving on to b-to-b, and then to infrastructure, and then to wireless, and then to fiber optics.

Editor's Note: the original site is out of business so I am linking to the archive.org archive of the article - it can be quite slow at times...

NCOE looks at the latest development in the VC industry - Community Development Venture Capital (CDVC). CDVCs seek to tap the proven approach of traditional venture capital, but, for a different purpose: they aim to bring new investment to regions and sectors not participating in the current economic boom.

Editor's Note: see related article, "Community Development Venture Capital: A Double-Bottom Line Approach to Poverty Alleviation" at:
http://unepfi.net/venture/CVCbackground.pdf

Entrepreneurs often say they're looking for smart money. So it should come as no surprise that more of them are shunning old-school venture capitalists in favor of savvy tech veterans who have started their own investment funds...

Big firms thought VCs could help them get rich and build online businesses. Now they're thinking again.

Valuation advisor Phil McGuigan, of Gordon & Glickson, discusses how to determine a valuation of an early-stage company seeking investors. In sharing examples, he highlights the recipe for investment and the necessary ingredients, such as a management team and a business plan.