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]
Content: Online Resource | Source: Cooley Godward | Subjects: Entrepreneurship, Venture Capital
Multiples vs IRR
Matt McCall blogs about why pitching to VCs in terms of IRR rather than multiples is a mistake.
Content: Article | Author: Matt McCall | Source: VC Confidential | Subjects: Entrepreneurship, Venture Capital
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 ]
Content: Article | Source: Kearney | Subjects: Industry Specific, Venture Capital
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.
Content: Article | Author: Paul Kedrosky | Source: Infectious Greed | Subjects: Entrepreneurship, Venture Capital
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 ]
Content: Article | Source: Working Group on Director Accountabilitiy and Board Effectiveness | Subjects: Corporate Governance, Entrepreneurship, Venture Capital
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 ]
Content: Article | Authors: Antonio Dávila, Chris Armstrong, George Foster | Source: IESE Insight | Subjects: Entrepreneurship, Finance, Venture Capital
Charles H. Ferguson
Anyone who tends toward arrogance should be sentenced to a term of VC fund-raising during a tight market.
Content: Quotation | Source: Fast Company | Subjects: Entrepreneurship, Venture Capital
American Venture Capital Syndication from 1960 to 2004
Venture capital is a crucial part of enterprise and job creation, but it also represents a market in itself. Does the venture capital sector behave like other markets, or does it have features that mark it as different? By identifying the characteristic features of the venture capital market, this paper from Bruce Kogut, Pietro Urso and Gordon Walker, provides valuable information for policy makers looking … [ Read more ]
Content: Article | Authors: Bruce Kogut, Gordon Walker, Pietro Urso | Source: INSEAD Knowledge | Subjects: Finance, Venture Capital
The Top Ten Lies of Venture Capitalists
To foster greater understanding among the entrepreneurs and VCs, Guy Kawasaki presents an exposé of the top ten lies of venture capitalists.
Editor’s Note: I love the definition of a blogger on his site: “someone with nothing to say writing for someone with nothing to do.”
Content: Article | Author: Guy Kawasaki | Subjects: Entrepreneurship, Venture Capital
VentureWiki
VentureWiki is intended to be a resource for entrepreneurs to capitalize on the collective experience, opinions, and judgement of the venture capital community.
Editor’s Note: the site says it’s a work in progress and it appears that way – some good information already exists, but it is sparse; not sure if it will get popular or whither away but I list it with hope of … [ Read more ]
Content: Online Resource | Source: Woodside Fund | Subjects: Entrepreneurship, Venture Capital
Why Some Private Equity Firms Do Better Than Others
Private equity firms score their biggest wins by helping the companies in their portfolios to outperform industry peers. Our research shows that these firms do so by governing their companies actively, offering focused incentives, investing lots of time during the first 100 days, developing plans to create value, and changing management teams early when necessary.
Content: Article | Authors: Conor Kehoe, Joachim Heel | Source: McKinsey Quarterly | Subjects: Finance, Venture Capital
Done Deals: Venture Capitalists Tell Their Stories
“Until a few years ago,” notes journalist-consultant Udayan Gupta, “venture capitalists were hardly on anyone’s radar screen.” That’s not the case these days, as financiers who used to work behind the scenes now regularly set markets afire with their public support of high-profile technology and Internet stocks. In Done Deals, Gupta allows 35 of the brightest stars in what has become a $30-billion-a-year business to … [ Read more ]
Content: Book | Author: Udayan Gupta | Subjects: Entrepreneurship, Venture Capital
Feld Thoughts: Posts on Letters of Intent
Following up on the Term Sheet series, the Feld Thoughts blog offer a series on the Letter of Intent. As stated in the first post, “Deals have to start somewhere, and often the first real ‘document’ that gets negotiated after the foreplay turns serious is the infamous letter of intent…This sometimes delightful and usually non-binding document (except for things like a no shop agreement) is … [ Read more ]
Content: Online Resource | Authors: Brad Feld, Jason Mendelson | Source: Feld Thoughts | Subjects: Entrepreneurship, Legal, Venture Capital
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.
Content: Thought Leader | Author: Patrick Mannion | Source: EE Times | Subjects: Management, Venture Capital
Declining Seed Investments
Venture Valuations
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.
Content: Article | Author: Jim Melloan | Source: Inc. Magazine | Subjects: Entrepreneurship, Venture Capital
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.
Content: Article | Author: Brad Feld | Source: Feld Thoughts | Subjects: Industry Specific, Venture Capital
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 ]
Content: Online Resource | Source: UNC Kenan-Flagler Business School | Subjects: MBA Related, Venture Capital
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”
Content: Article | Author: Brad Feld | Source: Feld Thoughts | Subjects: Entrepreneurship, Venture Capital
