Feld Thoughts: Posts on Term Sheets

A series of blog posts by Brad Feld (a VC) explaining various aspects of term sheets to entrepreneurs.

Expectations and the First Chicago Method

Informative blog entry on how many VC firms calculate estimated IRR during due diligence to decide whether to make an investment or not.

VC Experts

VC Experts serves the needs of the private equity and venture capital communities with its anchor product, The Encyclopedia of Private Equity and Venture Capital by combining substantive commentary on the private equity and venture capital industries with online learning courses. The VCExperts.com site includes current industry news, weekly commentary, and the online University and 4,000 page Encyclopedia of Private Equity and Venture Capital.

The Encyclopedia … [ Read more ]

Venture Capital’s Transparency Trouble

There is a new and growing challenge to the closeted culture of venture capital. Recent court rulings have forced public institutions that invest in venture capital funds to disclose information about the funds through the Freedom of Information Act. Public investors, such as state pension funds, need to turn over the information, while private groups such as family endowments do not.

Compensation for Board Members

VC Brad Feld offers a set of simple rules for board member compensation in young private companies.

Why Size Matters

When you outgrow smaller rivals and must compete with big corporations for the first time, you’re entering a tricky stage of growth called No Man’s Land.

Four VCs on Evaluating Opportunities

Four venture capitalists explain to Harvard Business School professor Mike Roberts and senior research associate Lauren Barley how they evaluate potential investments.

The four:
– Russell Siegelman (Partner, Kleiner Perkins Caufield & Byers)
– Sonja L. Hoel (Managing Director, Menlo Ventures)
– Fred Wang (General Partner, Trinity Ventures)
– Robert Simon (Director, Alta Partners)

How to Change the World: Social Entrepreneurs and the Power of New Ideas

Journalist Bornstein (The Price of a Dream: The Story of the Grameen Bank) profiles nine indomitable champions of social change who developed innovative ways to address needs they saw around them in places as distinct as Bombay, India; Rio de Janeiro, Brazil; and inner-city Washington, D.C. As these nine grew influential when their ingenious ideas proved ever more widely successful, they came to the attention … [ Read more ]

Joe Kraus

Very early on, the founders of startups make an important choice. Do they want success or control? Neither is bad so long as the choice is explicit. I’ve picked success. And success implies giving up control — hiring people who are much better than you, or being willing to be the janitor if that’s what’s required.

Netpreneur Exchange Funding & Finance

Great resources about funding your entrepreneurial venture including the following PDF downloads:
– Ernst & Young Outline for a Business Plan – A Proven Approach for Entrepreneurs Only
– Venture Capital — An Overview of the Basic Issues and Challenges for Entrepreneurs
– Anatomy of a Term Sheet
– An Entrepreneur’s Guide to Raising Private Capital

Also be sure … [ Read more ]

Helping nonprofits do business

Business plan competitions are a powerful way to help nonprofits turn ideas into sustainable commercial ventures.

Pricing and Positioning for Entrepreneurial Marketers

According to Wharton marketing professor Leonard M. Lodish, “positioning and pricing are the most important entrepreneurial marketing decisions that you can make … Before you go out and raise a lot of money, before you invest in research and development, before you start spending serious money, you must find out if there is a demand for your product and whether or not you can price … [ Read more ]

Birth of New Firms: Knowledge is Key

Ever since Ronald Coase posed the question in 1937 -“Why do firms exist?”-, all the answers given have explained the genesis of firms o­nly in terms of the need to economize o­n costs, such as transaction costs, agency costs, and supervision and monitoring costs. In their paper “Dispersed Knowledge and an Entrepreneurial Theory of the Firm”, Nicholas Dew of the Naval Postgraduate School, S. Ramakrishna … [ Read more ]

Josh Kopelman

I think there are too many people who try to change consumer behavior. That’s really expensive. When an entrepreneur tells me he or she wants to educate the market, I run the other way.

Business Plans Kit for Dummies (With CD-ROM)

While Business Plans For Dummies covers the strategy of putting a business plan together, Business Plans Kit For Dummies covers how to put a business plan to work! This kit covers business plans for every stage (and every type) of business: e-business, sole proprietorships, small businesses, service companies, high-tech companies, non-profits — even business plans for middle managers and restructuring a company. It emphasizes methods … [ Read more ]

Taking the Trouble to Research Your Market

As a MOOT CORP judge, Rob Adams sees too many business plans written with the ink of wishful thinking. A clipboard and some astute questions are always more useful.