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 ]

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 ]