You’re wealthy and wired. You just read Become an Angel Investor: An HBS Framework and 2010: The Ultimate Buyers’ Market for Investor. You’re getting antsy. You’re ready to invest in a startup. You’re ready to tap into your Rolodex and pave the road to success for any startups that cross your desk. Whoa. Slow down! [...]
This is Part 3 of our quest to answer a reader’s question on dilution. The reader writes – How do you prevent being washed out as you keep pro-rata and the numbers get increasingly bigger? Suppose you invest $200k for 25%. The venture then raises $5m, so to keep pro rata you do $1.25m of [...]
A reader writes – How do you prevent being washed out as you keep pro-rata and the numbers get increasingly bigger? Suppose you invest $200k for 25%. The venture then raises $5m, so to keep pro rata you do $1.25m of that round. Then it raises $15m. Eventually it gets hard to follow you money [...]
With the economic climate being heavy on the minds of investors, it is important to remember that a time of recession is not always doom and gloom. A great number of successful companies got their first boost towards success during a recession. Companies such as Apple, Atari, and Oracle all began their steady climb to [...]
So you’ve heard about Y Combinator, LaunchBox, and TechStars. And you’re excited about the possibility of founding a famous incubation program. Before you go about starting one, check out these tips from Sandra Cochrane, an expert in the incubation industry. Cochrane is on the board of directors of both National Business Incubator Association (NBIA) and [...]
There are few throughout the global economy who have been able to escape the impact of the recession. Amidst the branch closings, market losses, cutbacks and reorganizations, one bright light is shining on the horizon – the revival of Silicon Valley. For angels seeking new investment opportunities, excitement just might be brewing. Hot Deals Emerging [...]
Last week, James D. Robinson told us how he became a VC and what prompted him to launch RRE Ventures, a New York and Silicon Valley based VC firm that manages US$850 million in investment assets and injects up to US$15 million in a single company over its lifetime. Today, Robinson gives his take on [...]
There was a day not long ago when a venture capitalist wouldn’t even look at a deal if all the entrepreneur was seeking was a minimal investment to get the company off the ground. Such investments were too small to consider and hardly worth their time. While this may have posed a problem for the [...]