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]

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 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 ]

Charles H. Ferguson

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

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 ]

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.”

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 ]

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.

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 ]

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 ]

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.

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.

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”