The Start-up Guru

Paul Graham’s business school and investment fund, Y Combinator, has launched 145 companies — for a lot less money than you would think.

A VC’s Advice On How To Pitch VCs

Raj Kapoor gives entreprenuers advice on how to pitch VCs. Kapoor knows both sides of the equation. For the past five years, he’s been a VC at the Mayfield Fund. Before that he founded the photo site Snapfish, which he sold to Hewlett-Packard.

Thoughts on Taking Venture Money

Roger Ehrenberg attempts to answer a fundamental question for entrepreneurs: whether or not to take venture money, and if so, from whom?

The Small Business Management Knowledge Base

This reference guide is designed to serve as a comprehensive small business management manual. It contains numerous topics that cover most aspects of small business management. You will find here hundreds of guides, worksheets and tips that will give you solutions to almost every problem or situation you can possibly encounter in the course of operating your business.

TechStars Model Seed Funding Documents

David Cohen, founder of TechStars, and Brad Feld worked closely with Cooley Godward Kronish, LLP to put together a set of “Model Seed Funding Documents” that anyone can use. There are five primary documents in the set:
* Term Sheet
* Articles of Incorporation
* Bylaws
* Subscription Agreement
* Election Consent

Of course, these are just example documents so all legal disclaimers about usage apply … [ Read more ]

WSGR Term Sheet Generator

This tool will generate a venture financing term sheet based on your responses to an online questionnaire. It also has an informational component, with basic tutorials and annotations on financing terms. This term sheet generator is a modified version of a tool that we use internally, which comprises one part of a suite of document automation tools that we use to generate start-up and venture … [ Read more ]

The Funded Publishes Ideal First Round Term Sheet

TechCrunch gives an overview of and link to a new basic term sheet for use by investors and founders, authored by Adeo Ressi, founder of The Funded, a site where people rate venture capitalists .

Startup 101: ReadWriteStart’s Serialized “How to Build a Startup” Book

“Startup 101” is a serialized book about the thrills and spills of starting a Web technology venture. Startup 101 is for first-time entrepreneurs who want to go through the whole startup life cycle – including raising money, building a valuable business, and making a lot of money by selling the venture or taking it public.

This series is designed for Web technology startups. But if you … [ Read more ]

Startups in 13 Sentences

Paul Graham offers startups 13 pieces of advice.

Clusters of Entrepreneurship

Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise entrepreneurial returns, thereby increasing net returns and attracting entrepreneurs. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. … [ Read more ]

Good Question! The Eight Best Questions We Got While Raising Venture Capital

VCs are good at asking questions. They are unimplicated in your dumb decisions, unmoved by your original sense of mission and far less concerned than you that a blunder could bankrupt you. They re-imagine your business in terms of all the other businesses they’ve seen, pulling the arms off one doll and the head off another to create a perfect money-making Frankenstein. And since the … [ Read more ]

New Private Equity Fellowship For Minority MBA Graduates Launched

The Carlyle Group and the Robert Toigo Foundation will launch a private equity MBA fellowship intended to attract minority MBA candidates to the sector.

25 Excellent Social Media Sites for Entrepreneurs

Are you an entrepreneur who has been seduced by social media tools such as Twitter, LinkedIn or Facebook? If so, you may realize the benefits of displaying your resume, finding and staying in touch with business partners, employers and customers, and learning new information through these basic tools.

If you don’t use a variety of basic social media tools for networking, then you’ll learn a few … [ Read more ]

Rita Gunther McGrath

One of the biggest differences between a core business and an entrepreneurial one is what colleagues and I have termed the difference in the Assumption:Knowledge ratio. Businesses with a low ratio – such as your core – can be managed conventionally. In such situations, the measure of a good plan is how close results came to expectations, and failure rates should be low. In a … [ Read more ]

In VC deals, Price Doesn’t Matter – But The “Promote” Does

VCs have an unfair advantage when it comes to financings. They simply have more experience doing deals.

One area that has always struck me where this asymmetrical relationship comes into sharp focus is when there’s a discussion around the price of the deal. Entrepreneurs often mistakenly focus solely on the pre-money valuation while VCs look at multiple knobs in the negotiation to drive … [ Read more ]

Key Steps Before Talking to Venture Capitalists

Some entrepreneurs may not be familiar with raising institutional capital to grow their businesses. Expansion plans beyond common organic growth are typically dependent on personal investments from company founders, friends, family, and occasionally from banks or the government.

Even in regions where it was once scarce, venture capital (VC) is becoming a more important option to raise new money – especially in high … [ Read more ]

Best Practices for Conducting a Search: Panel Discussion

Search fund entrepreneurs and investors discuss how to conduct a search to maximize the probability of finding and closing an attractive acquisition. Panelists are Rafael Somoza (MBA ’96), Robert Befidi, Jim Southern and Rich Kelley (MBA ’89). Moderated by David Dodson (MBA ’87), Lecturer for Entrepreneurship Through Acquisition.

Randy Komisar

Entrepreneurial leaders need to be a little bit deaf and a little bit blind. By definition they’re trying to do something that defies the common view. They have to be inured to skeptics. They have to believe that their vision is true and they can make it happen. But if they are too deaf and too blind they won’t learn from the market or their … [ Read more ]