From the Trenches: Equities Iniquity

Article takes a look at the underlying problems with today’s investment banks’ research analysts.

The Smart VC: Down But Not Out

It’s a battle that will never end. Entrepreneurs complain that venture capitalists are ripping them off when they do follow-on rounds at reduced valuations. VCs say they’re doing the entrepreneurs a favor just by doing the round, because the alternative is for the startup to go belly-up. You’ve heard a lot from VCs in this column explaining how they make sure that the management of … [ Read more ]

VC P.S.: The smart entrepreneur

Alan Warms, founder and CEO of Participate.com offers the following rules of the VC game for would-be entrepreneurs:
– GET BRANDED
– THINK LONG TERM
– BE PREPARED
– USE YOUR VC
– TRUST YOUR VC
– BE AN ANTIBIOTIC
– KEEP IT SIMPLE

The Art of the Tie-In

From late 1998 through the summer of 2000, Wall Street was an out-of-control beast, and IPOs were its sustenance. The Securities and Exchange Commission is reportedly investigating a host of questionable issues, including whether investment banks unfairly allotted pre-IPO shares in return for a variety of kickbacks. It is the practice of tie-ins, more than anything else, that has attracted most of the … [ Read more ]

Surprise – your finances are now public!

Spring so far has been full of surprises, not the least of which is the SEC’s relief for private companies with at least 500 option holders that, under Section 12(g) of the Securities Exchange Act of 1934, might have had to fulfill public company disclosure requirements, such as 10-Qs and 10-Ks. It could be extremely harmful for a private company to have to expose its … [ Read more ]

Various Venture Capitalists

comb through the archives of Red Herring’s VC P.S. column to find a large number of VCs profiled and interviewed (usually in two parts)

The ten commandments

Venture capitalist Mike Frank gives his “Ten Commandments of Fundraising” in an attempt to provide a primer for inexperienced entrepreneurs, and a helpful recap for seasoned entrepreneurs who want to go over the basics of the VC game.
1. Thou shalt focus, focus, focus thy plan.
2. Thou shalt weave a story.
3. Thou shalt understand thy audience.
4. Thou … [ Read more ]

Poison pills are no shareholder panacea

Article examines stockholder rights plans, also called poison pills.

Investors all choked up over collars

One of the most popular ways to gauge a company’s health is to mind what corporate insiders are doing. If they’re jumping ship or dumping shares, there’s good reason to worry. But it’s not as easy to track insider bearishness as you might think, thanks to a hedging tactic called the zero-cost collar, a tool that’s saved insiders a boatload of cash while individual investors … [ Read more ]

Vinod Khosla

Famous Kleiner Perkins Caufield & Byers partner and serial entrepreneur

Herringtown

This new service from the online technology magazine _Red Herring_ is a database of start-up companies. The database is browseable by company name, name of a person, industry, or funding stage, as well as being keyword-searchable. Information on each company in Herringtown is presented in several layers. The first offers general information such as company contact information, year founded, and number of employees. The second … [ Read more ]

Entrepreneurs join the VC team

Entrepreneurs often say they’re looking for smart money. So it should come as no surprise that more of them are shunning old-school venture capitalists in favor of savvy tech veterans who have started their own investment funds…