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 ]
Content: Article | Author: Brad Feld | Source: Feld Thoughts | Subjects: Entrepreneurship, Venture Capital
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 ]
Content: Book | Authors: Mark Van Osnabrugge, Robert J. Robinson | Subjects: Entrepreneurship, Venture Capital
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 ]
Content: Article | Authors: Alexander Ljungqvist, Matthew Richardson | Source: NYU Stern School of Business | Subjects: Finance, Venture Capital
Feld Thoughts: Posts on Term Sheets
A series of blog posts by Brad Feld (a VC) explaining various aspects of term sheets to entrepreneurs.
Content: Online Resource | Author: Brad Feld | Source: Feld Thoughts | Subjects: Entrepreneurship, Venture Capital
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.
Content: Article | Author: Jim Lejeal | Source: Concrete Covina | Subjects: Entrepreneurship, Venture Capital
Fewer VCs & Fewer Startups (2003, 2004)
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 ]
Content: Online Resource | Source: Rare Ideas LLC | Subjects: Entrepreneurship, Venture Capital
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.
Content: Article | Author: Shannon Henry | Source: The Washington Post | Subjects: Industry Specific, Venture Capital
$53.6-Billion VC Overhang
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)
Content: Article | Authors: Lauren Barley, Mike Roberts | Source: Harvard Business School (HBS) Working Knowledge | Subjects: Entrepreneurship, Venture Capital
U.S. venture capital investment dollars (2004)
Startups Increase in Value
Guy Kawasaki
If you experience great difficulty in raising money, it’s not because VCs are idiots and cannot comprehend your curve-jumping, paradigm shifting, revolutionary product. It’s because you either have a piece of crap or you are not effectively communicating what you have. Both of these are your fault. End of discussion.
Content: Quotation | Source: Forbes | Subjects: Communication, Venture Capital
Offshore Drilling
Why foreign-based VCs are taking a closer look at U.S. firms.
Content: Article | Author: Michelle Leder | Source: Inc. Magazine | Subjects: Entrepreneurship, Venture Capital
Art of the Start
Former Apple marketing maven Guy Kawasaki has established quite a second career as start-up counselor and funder via his Garage Technology Ventures VC firm. We are big fans of his Forbes column, which offers straight-shooting advice from someone who has been there. His topics are as broad as the importance of taking chances to the right time to name a company, from the worth of … [ Read more ]
Content: Online Resource | Author: Guy Kawasaki | Source: Forbes | Subjects: Entrepreneurship, Venture Capital
A New Strategy for Venture Investors: Hedge
It’s the venture capital investor’s rule of thumb: Nine of every 10 investments will not make money. If all goes well, the 10th will make enough money to exceed all the losses. Given these odds, investors are always looking for ways to increase returns from their winner. Bill Hilliard and Charles Baden-Fuller, visiting scholars at Wharton’s Sol C. Snider Entrepreneurial Research Center, believe they have … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subjects: Industry Specific, Venture Capital
U.S. VC Investments Q12004
VC in Asia: Exit strategy in a “no exit” land
With all that money pouring into China, the question is, How can you get it out?
Content: Article | Source: Red Herring | Subjects: International – China, Venture Capital
What Do Entrepreneurs Pay for Venture Capital Affiliation?
A software services company looking for an early-stage round of investment from venture capital funds gets four offers. Two of them value the company at $10 million, one at $12.5 million and one at $20 million. Any of the offers would net the software company approximately $8 million in cash inflows. It would seem to be a no-brainer. Accept the investment at the highest so-called … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subjects: Entrepreneurship, Venture Capital