Roger Ehrenberg from IA Ventures has today’s VC post of the day titled Financing your start-up. He covers some very relevant ground talking about what he thinks are the key variables an entrepreneur should consider with regard to her financing strategy: (1) Founder objectives and mind-set; (2) Business potential; (3) and Interpersonal dynamics. As with many things in life, Roger states something that we strongly believe: “But at the end of the day, interpersonal dynamics plan a vital role in any financing plan for a business of any size.”
Posts Tagged ‘vc post of the day’
The theme of the VC post of the day today is “better board meetings.” We noticed two VC’s blogging about this so we thought we’d highlight both of them.
The first is from Robert Siegel of X/Seed Capital titled A Thought on Board Meetings. In addition to saying nice words about previous posts from Brad on board meetings, he builds around the idea that “In the end, a Board really does one thing: Hire and fire the CEO.” He strongly suggests that “Therefore, no matter how much one likes his or her Board, and no matter how much one’s Board likes the team, management always needs to come prepared to Board meetings – one simply cannot “wing it” – even if things are going well for the company.”
Brad’s been on a quest to reinvent board meetings and has started with his portfolio. While it’s rumored that he is making good progress, these posts are solid suggestions for improving traditional board meetings.
Today’s VC post of the day is from Mark Suster titled Don’t Cede Control: Why You Need to Cut out Middle Men in Negotiations. Mark has an outstanding blog, speaks from the experience of being both a two-time entrepreneur as well as a VC, and loves to write detailed, thoughtful, and very useful long form blog posts full of examples, anecdotes, and wisdom.
This one is no exception. If you are an entrepreneur, you’ll understand why you should take responsibility for the negotiation. If you a VC, Mark will remind you to be a big boy or girl and actually do the work, rather than try to pawn it off on someone else. And, the next time you think about some government negotiation, just remember that everyone is DC is actually a middle man for the people who elected them.
The runner up post today is Roger Ehrenberg’s titled Why investors matter. Roger is also an entrepreneur turned VC after a tour as an angel investor so he covers things from both the entrepreneur and VC perspective.
Our new motto over here at Ask the VC is “we read all the VC blog posts so you don’t have to.” We’ll give you the best one of the day with a quick summary and – if there are runner ups, include them also. Of course, we are never entirely sure what day it is so these might be from yesterday, today, or even tomorrow when we are really ahead of our game.
Today’s post of the day is from Charlie O’Donnell at First Round Capital titled Live in the problem, not in the solution: How customer development has gone awry. Charlie acknowledges up front that he’s not a Lean Startup zealot, although he thinks there are a lot of positives to the Lean Startup approach. He then goes on to talk about the challenge of applying the customer development approach to a domain you know nothing aboutl
“What’s lacking is an innate understanding of the customers problems before they go through the ideation phase. I find that some of the most sound entrepreneurial efforts are one where the founder has lived the problem uniquely in some way. Either they actually were the customer (and by customer I mean someone who pays for this kind of service) or they’ve literally spent years thinking about it–as an enthusiast or insider. “
We’d add a small comment to this – it’s really hard to be an entrepreneur around something you aren’t passionate about. This is tightly linked to Charlie’s point, as it’s hard to know a lot about something you aren’t passionate about.
Today’s runner up is Fred Wilson’s MBA Monday post on Financing Options: Preferred Stock. We cover this extensively in Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, but Fred does a nice job of introducing the concept.
It wasn’t supposed to be out for another week, but real copies of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist have started showing up in people’s hands. It feels great to have the thing finally ship.
Several of our friends have already put up reviews on their blogs. Take a look at what Fred Wilson and Matt Blumberg have to say. In addition to a nice review, Matt played an important role in the book as he took on “The Entrepreneurs Perspective” and wrote a bunch of sidebars which give the entrepreneurs view on the perspective that we had on various issues.
You’ll start to see regular posts again on this blog. Over the next few weeks we’ll give you a summary of each chapter along with some special bonus material. We’ve also started up a VC Blog Post of the Day – now that there are 9,415 VC bloggers, we’ll read all the posts and pick out the best one each day – so you don’t have to. Of course, if you are a VC and don’t think we are reading your posts (everyone we read is listed in the right sidebar under VC Bloggers), drop Brad an email and he’ll add you to the list.