The Entrepreneur’s Guide to Business Law

Bagley and Dauchy take the would-be entrepreneur from the decision to go it alone through the growth of the new venture to the initial public offering — anticipating and explaining legal concerns throughout the process. There are chapters on deciding whether to incorporate, raising capital, and forming a board, as well as discussions of contracts, product liability, intellectual property, and human resources.

“There is a need … [ Read more ]

The Sales Learning Curve: Optimizing the Path to Positive Cash Flow

There’s an old saying about rolling out a successful new product: “It always takes longer and costs more.” Many company executives are resigned to this state of affairs, determined to ride out the tough phase of the new product cycle on the path to positive cash flow.

But it doesn’t have to be that way. By learning from the mistakes of the past, start-ups can build … [ Read more ]

Beware of fishing expeditions

Fielding calls from strategic buyers expressing an interest in acquisition can be great news. However, as an entrepreneur you have to be skeptical as many of these calls end up as just another fishing expedition from the strategic buyer. In fact, you have to recognize and assume that many of these initial calls are just fishing expeditions where a strategic buyer is just trying to … [ Read more ]

Wanted: A Company to Call Their Own

For those entrepreneurial types who aren’t keen on starting a company from scratch, creating a search fund to buy an existing business may be the way to go.

Bob Metcalfe

Engineer-scientist, early Internet developer, and now venture capitalist: Bob Metcalfe has seen it all in 40 years on the front lines of technology. In this far-ranging interview, he waxes eloquent on the future of the Internet, the rise of the blogosphere, the demise of print media, why engineers should not become venture capitalists, and how to solve the energy crisis.

Angels With Angles

Angel investors are changing. Here’s what they’re looking for, how they operate, and (because the devil is in the exit strategy) what they expect for their money.

The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything

What does it take to turn ideas into action? What are the elements of a perfect pitch? How do you win the war for talent? How do you establish a brand without bucks? These are some of the issues everyone faces when starting or revitalizing any undertaking, and Guy Kawasaki, former marketing maven of Apple Computer, provides the answers.

The Art of the Start will give … [ Read more ]

To Participate or Not (Participating Preferences)

VC Brad Feld tries to explain the notion of participating preferred (a maligned and typically hotly negotiated issue in many venture capital investments), how it works, and its financial and emotional impact on a deal.

After the Term Sheet: How Venture Boards Influence The Success Or Failure Of Technology Companies

This white paper discusses the proper corporate governance role a Board should play in a start-up venture capital-backed organization. It is a best practices document designed to facilitate trust between CEOs and venture Board Members while keeping clear the unique and valuable role each plays in the life of a start-up.

J. Gregory Dees

Markets do not work as well for social entrepreneurs. In particular, markets do not do a good job of valuing social improvements, public goods and harms, and benefits for people who cannot afford to pay. These elements are often essential to social entrepreneurship. That is what makes it social entrepreneurship. As a result, it is much harder to determine whether a social entrepreneur is creating … [ Read more ]

Venture Capital Investment Competition (VCIC®)

The VCIC® is the nation’s premiere strategy competition for venture-minded and entrepreneurial MBA students. This one-of-a-kind competition gives students from top business schools a real-world venture capitalist experience – student teams interact with real entrepreneurs from real companies with real business plans. Unlike other competitions where teams lock themselves away to mull over theoretical or historical scenarios, the VCIC® experience exposes students to a variety … [ Read more ]

Do 58% of VCs Think Angel Involvement Is Unattractive – Nope!

“Yesterday, I received an interview request for an Inc. Magazine article concerning angel investing. The article is being driven by a recent survey by George Washington University that found 58% of venture capitalist respondents said that angel involvement ‘sometimes’ or ‘mostly’ makes a company unattractive.

…During the interview, I was asked three specific questions. The questions and my answers follow”

When Are 350 Million Shares No Different Than 35 Million?

VC Brad Feld answers the following question:

“At my company, we’re looking at recapitalizing from 3.5 million shares to 35 million (and contemplating 350 million). The reason is pretty straightforward (although we might be way off base here): we want to create “more shares” so that as we roll out our stock option plan there is some enhanced psychological value in “getting more shares,” for … [ Read more ]

Angel Investing: Matching Startup Funds with Startup Companies – A Guide for Entrepreneurs, Individual Investors, and Ventur

According to Robert J. Robinson and Mark van Osnabrugge, so-called business angels–those generally unheralded private investors who usually specialize in high-growth fields and often involve themselves directly in the endeavors they fund–now provide 30 to 40 times more financing each year than their more famous counterparts, venture capitalists. In Angel Investing, Robinson and Van Osnabrugge use personal interviews, anecdotal evidence, and more than 300 research … [ Read more ]

Styles of Thinking Impact on Financial Performance

Ground-breaking research from Cranfield School of Management has revealed that cognitive psychology can help explain financial performance in entrepreneurial businesses. The findings support the established view that risk-takers are likely to achieve the highest sales growth. The real news, however, is that they also demonstrate that owner-managers’ over-confidence in their own ability or judgment correlates with poor profit performance in their businesses. Conversely, owner-managers who … [ Read more ]

The Cash Flow, Return & Risk Characteristics of Private Equity

*** Abstract ***
Using a unique dataset of private equity funds over the last two decades, this paper analyzes the cash flow, return, and risk characteristics of private equity. Unlike previous studies, we have detailed cash flow data for each fund, rather than aggregate or accounting returns. We also know the exact timing of investments and capital returns to investors and the number and types … [ Read more ]