Incredible number of companies funded in the web 2.0 space. See this link 0
Instep Gartner Trends
Alok talked of out of step entrepreneurs. It is easy sitting in India to be instep. Towards that some technology trends mentioned by Gartner 1. Commoditization & consumerisation – makes tech more affordable 2. Virtualization & Tera Architechtures – Granular components that find each other and self assemble into a computing resource 3. Software Delivery […]
Next Big Thing/Bubble ?
In Silicon Valley there are some that believe that 1998 is back and worry again about a bubble building up. They point to a large number of startups being funded pursuing the same ideas. Oopen source etc. reduce barriers to entry . Their argument is that it is a bad time to start a company […]
Company Board
Running/Leading a Board is a big challenge which often becomes worse when a VC joins the board. Entrepreneurs should put in the disciplines ahead of time Some tips from “Venturing Forward” 1. Successful board meetings are ones with no surprises – making decisions not trading information 2. Fiduciary responsibility is paramount 3. Controlled meeting 4. […]
Term Sheets
The biggest negotiation is the Term sheet 1. Abbreviated v/s Industry Standard 2. Used to negotiate full deal structure with legal advice 3. Question of exclusivity 4. Key terms to negotiate (besides price) a. Participating preferred b. Full ratchet anti dilution c. Large liquidation preference d. Veto/controls Some links to industry standard term sheets NVCA […]
Venturing Forward – Valuation
A VC serves two masters. Investors in the VC fund and entrpereneurs. Normally the way VC’s get paid is 2 and twenty. 2% of committed capital as a management fee and 20% of profits. 80% goes back to investors. Valuation must be managed through multiple dependent rounds of financing while considering 1. Ability to attract […]
Venturing Forward – Mistakes
Common mistakes while raising venture capital 1.Lack of focus on People People People 2. Insufficient Time 3. Failing to Generate Investor Competition 4. Staying Domestic 5. Price as the only criteria 0
Venturing Forward – VC Myth
Myth : VC’s are risk takers Reality : VC’s are in the business of identifying and mitigating risk through due diligence, valuation, term sheet – economic provisions, control provisions. The VC process is slow deliberative and based on lots of information 0
Venturing Forward -Amazon
I received a presentation on “Raising Venture Capital” by Diane Mulcahy author of Venturing Forward a guide to Raising Equity Capital in Ireland. I have not read the book but the presentation was excellent. It gave some data on how Amazon got started. Entrepreneur : Q3 94 – Founder Jeff Bezos got started investing $10k […]
Microsoft Imagine Cup 2006
The finals of this global competition are being held in Delhi. See link. When I was in Citibank in India ( 1981-1989) I remember a couple of firms that are quite big to day getting started because Citibank agreed to be their first customers. Building on this thought it may be possible for the Band […]
Getting Started
I keep getting approached by entrepreneurs who have not done the basic steps before trying to raise angel funding. I thought it may be useful to put down a basic checklist. My checklist follows. 1. Incorporate the company that is seeking funding 2. Get a good law firm and have basic documentation in place 3. […]
Just in Time
Do most entrepreneurs in India prefer just in time capital raising and spending ? In my experience in Silicon Valley keeping a large capital cushion was considered quite important and after the initial proving stage, spending on say office space , key talent etc was done rapidly. The just in time approach minimizes dilution. I […]