Archives / March, 2007

Boulder Open Coffee Club Open for Business

We’ve decided to start the Boulder version of the OpenCoffee Club.  The club is quickly becoming an internation club that has local franchises.  Saul Klein was the brains behind developing a forum where entrepreneurs, developers and investors organize real-world informal meetups to chat, network and grow.  In other words, people in the venture capital world get…

How Do VCs Discount For Lack Of Marketability of Stock?

Question: While valuing a private company and arriving at a valuation do VCs take into consideration a discount for lack of marketability. If at all, how do they objectively arrive at a figure for such discounts? All of our deals have a lack of marketability in their securities. Startup companies, by definition, don’t have a…

Location, Location, Location

Q: What tips do you have for startups who aren’t in any of the usual vc hotspots like the Valley, NYC, or Boston? Some people believe that the real estate adage “location, location, location” is sacrosanct when starting a company.  While there is no doubt that it is easier to find your way in a…

Should An Angel Investor Invest in Friends?

Question: I’ve done angel investing for the past 8 years.  I most often invest with people I don’t know or am referred to.  I have invested a few times with friends and it has always been hard to be tough on them as a shareholder, so I’ve stopped which is too bad since I have…

What Should I Consider With Management Carve Out Plans?

Question: We are considering selling our VC-backed company. It may not be the optimum time so valuation is a question. My board has asked me to proposed a management carve out plan as a retention tool. What do I need to consider in formulating this proposal? While management carve out plans were rarely used before the…

Okay, I Got A Job At A Venture Firm: What Do I Do Now?

Today, our partner Chris Wand is our guest blogger of the day.  Question: I am a VC, what do I do now? When I left university I got lucky & landed a job working as an analyst for a VC firm. Fast forward a few years & now I’m left wondering what to do. There…

Are Advisory Boards Helpful?

Question: Does a Board of Advisors provide much value to a startup company? Would having a Board of Advisors have any impact, negative or positive, on angel or venture capital funding? It’s a lame answer, but “it depends.” We’ve seen the effectiveness of these boards skew all over the map. We’ve seen some that are…

How to Fill Early Board Positions In A Pre-Seed Company

Question: Under what conditions would it make sense for a pre-seed stage CEO to give a board seat to his co-founder CTO/VP Engineering? What might be the positives/negatives? Especially if the CTO/VPE has more experience with dealing with VCs than the CEO? If you think your co-founder would make a good fellow director, then put…

New VC Blogger – Todd Jaquez-Fissori

The FeedBurner Venture Capital Network has expanded to 71 bloggers (with a reach over over 200,000 daily subscribers) by the addition of Todd Jacquez-Fissori.  I’ve known Todd since he lived in Boulder and worked at Boulder Ventures – he’s now at Siemens Venture Capital and has started a new blog titled The Outright VC.  Welcome…

How Do You Plan for M&A?

Once again we have a guest blog from Will Price at Hummer Winblad.  We appreciate Will’s efforts in both writing a post on planning for M&A as well as introducing some MBA-speak into AsktheVC (hint: BATNA). Question: How do you plan for M&A? Trying to build our company, thus far we went the regular path…