The 411 On Startups (tm)

What to Expect When You’re Expecting Venture Capital Returns

Jul

2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. Just about every analyst who looks at fund investing has built one. You incorporate expected company returns, mortality rates, and fee structures to try to ...

The Pre-money vs. Post-money Confusion With Convertible Notes – Feld Thoughts

Jul

2015

The other day, Mark Suster wrote a critically important post titled One Simple Paragraph Every Entrepreneur Should Add to Their Convertible Notes. Go read it – I’ll wait. Or, if you just want the paragraph, it’s: “If this note converts at a price higher than the cap that you have been given you agree that in the ...

Concerns of a note holder | Vincent Jacobs

Jul

2015

What angels may worry about when investing in convertible notes Much has been written about the advantages and disadvantages of raising funding using convertible notes versus equity, both for startups and for investors. At Kima Ventures, we often choose to invest using convertible notes due to the speed, simplicity and cost of the transaction but, ...

Business Name Mistakes That Investors Hate to See

Jul

2015

Just as with names of people, there isn’t any ultimate right or wrong, and every name has unique implications in different cultures, economies and markets. Names can imply strength, value, connection or friendliness, or they can set opposite tones. As you search for that perfect name, it pays to avoid the key mistakes that we investors and ...

The Advantages Of Belonging To An Angel Group – Forbes

Jul

2015

Angel investing as an asset class is continuing to grow and many accredited investors want to learn how they can best get involved. When I’m asked that question I have one simple answer—start with a local angel group. There is no better way to simplify the complexities of angel investing than by working alongside like-minded ...

Regulation A+ Explained

Jul

2015

Though some may quibble over the details, June 19, 2015, was an historic day in U.S. regulatory history, at least as far as raising capital for small businesses is concerned – the first day that Regulation A+ became operable. Ever since 1933, the only lawful way a company could sell a piece of the action ...

Why every entrepreneur should consider a Mini-IPO

Jul

2015

Title IV of the 2012 JOBS Act kicked in today. Now, the fastest growing private companies in America can conduct Mini-IPOs and raise up to $50 million from anyone. Historically, investing in startups and small businesses was reserved for just accredited investors, or just the wealthiest 2 percent of America. Now, after three years of ...

Mini IPOs — Regulation A

Jul

2015

Growing companies seeking to raise up to $50 million have a new financing option, starting Friday: a process that will open some private businesses to a wide pool of new investors. More than three years in the making, the regulatory change, an expanded version of a rule known as Regulation A, is intended to let ...

5 Secrets to a Successful Equity Crowdfunding Campaign

Jun

2015

Funding your startup or growth company through equity crowdfunding platforms has the potential to raise money faster and more efficiently than other venues. The beauty of going down this route is that it makes the fundraising process seamless from the initial contact through closing the deal. Here are five strategies that will increase your likelihood ...

Bill Gross: The single biggest reason why startups succeed | Talk Video | TED.com

Jun

2015

Bill Gross has founded a lot of startups, and incubated many others — and he got curious about why some succeeded and others failed. So he gathered data from hundreds of companies, his own and other people’s, and ranked each company on five key factors. He found one factor that stands out from the others ...