Isolating Causality: Bad Market or Bad Company

When a company is behind plan, an investor must ask is it the market or is it the company? A frequent challenge for an investor is to isolate causality in a given investment. Isolating market (exogenous) or company (endogenous) causality is vital with respect to the appropriate remedial action. If it is the market, there is little chance that more money or new management will … [ Read more ]

Private Company Financings Update

Cooley Godward regularly present findings on private company financings. These reports provide a summary of data, reflecting their experience in venture capital financing terms and trends. If you are an entrepreneur looking to raise money or just someone interested in venture capital, check it out. [hat tip to Ask the VC]

When (Organizational) Change Hurts: Startups Need to “Think Employees” from the Get-Go

A decade-long study of Silicon Valley (California) technology startups finds that companies were three times more likely to fail if at some point they altered the founder’s blueprint for employee relations than if they maintained their original model.

Multiples vs IRR

Matt McCall blogs about why pitching to VCs in terms of IRR rather than multiples is a mistake.

Creating New Jobs and Value With Private Equity

Forget what you might have heard about Private Equity (PE). Contrary to popular belief, there is no evidence that PE destroys companies and employment. In fact, the latest statistics reveal that PE accelerates the growth of jobs and generates value (to the tune of one million over the past four years in Europe and 600,000 in the United States). Is it time for traditional firms … [ Read more ]

Four Unusual Questions You Should Ask in Raising Venture Money

Okay, you have decided to raise venture money. You have had a few meetings with a VC, presented to some partners, and you are in the pre-termsheet pipeline with a venture firm that you’re interested in. Okay, but that is a much more perilous place than most entrepreneurs understand, so here are four questions you need to get answered right away.

A Simple Guide to the Basic Responsibilities of VC-Backed Company Directors

This report is the result of nine months of collaborative effort by 22 leading VC professionals, including CEO’s, attorneys, independent directors, and VCs. It represents the first practical guide to the basic responsibilities of board service in venture capital backed companies. This guide should also be useful to non-directors who are senior managers in VC-backed companies and to anyone associated with a VC-backed company who … [ Read more ]

How to Buy a Business

Ken Hendricks buys companies more often than most people buy toothpaste. He claims his ability to size up the numbers is innate. More ordinary, five-sensed entrepreneurs may need a little help dissecting the financials. But they can still learn from Hendricks’s five rules for a successful acquisition.

You, Inc.

Got guts-and 15 other must-haves-to start up your own shop?

FormNet

FormNet® is designed to save you the time and expense of creating business documents from scratch. You can download and customize various business forms according to your needs, and immediately put them to work in your business–all for free.

A Methodology and Model for Assessing Entrepreneurial Ventures

Evidence suggests that small firms benefit from business planning as new ventures are assessed and started. Yet relatively few make use of business planning, or go about such planning in an inconsistent way that invites errors and omissions. This paper presents a systemized web-based venture planning model that provides opportunities for entrepreneurs to collect the appropriate information and assess their ventures. This model is based … [ Read more ]

The Impostor Syndrome

Why do so many successful entrepreneurs feel like fakes?

The Bootstrapper’s Bible

Seth Godin’s advice on starting a business with no money.

How Private Equity Investors Value Entrepreneurial Ventures

Private equities are an important and growing part of the worldwide capital markets, and include early stage investments, often backed by venture capital. In the article “Venture-Backed Private Equity Valuation and Financial Statement Information,” Professors Antonio Dávila of IESE, and George Foster and Chris Armstrong of Stanford analyze how financial statement information impacts the valuation of firms by private equity investors in the U.S. market. … [ Read more ]

Putting a Leash on Your Real Estate Lease: Leasing Tips

Leasing new space is an event that can have major implications for any business. If a company leases space that ultimately turns out to be unsuitable for all its operations, or if the lease does not allow for expansion, the growth of the company can be unduly hindered. If too much space is leased, the company will end up wasting limited cash resources. … [ Read more ]

Gary Heavin Is On a Mission From God

His goal: To single-handedly save the world’s women from obesity. With Curves, he seems to be pulling it off. And he’s built a billion-dollar business along the way.

Charles H. Ferguson

Anyone who tends toward arrogance should be sentenced to a term of VC fund-raising during a tight market.

Mastering Unforeseeable Uncertainty in Startup Companies: an Empirical Study

Even the unforeseeable can be prepared for if you have the right tools. Start-ups are often faced with the unknown, when traditional methods cannot help them. But there are two options for managers of young companies such situations. So how to choose which method is most appropriate? Authors Sommer, Loch and Dong look at a sample of 62 start-up companies in Shanghai to shed light … [ Read more ]

The Technology Entrepreneur’s Guidebook

A business guide for entrepreneurs. Contents include:
– Entrepreneurship
– A Sensible Approach to Writing a Good Business Plan
– Raising Venture Capital
– Accounting Policies and Procedures for Early Stage Companies
– Legal Issues for Early Stage Entrepreneurs
– Managing Explosive Growth in Technology Companies
– Choosing an Exit Strategy

Editor’s Note: some info is basic, some is quite thorough; the accounting info … [ Read more ]