Archives / July, 2007

Latest and Greatest on Stock Option Practices

Today’s great VC post actually comes from a lawyer (who represents VCs and VC-baked companies).  And he brings good news.  (Does that ever happen?). Mike Sullivan, a former colleague of mine and a partner at Howard Rice has a post about new flexible ways of considering stock option grants.

Raising Money From Venture Capitalists Versus Investment Banks.

Q: We’re a small startup with an innovative product in the social-networking / communications / UGC monetizing realm, at a pre-alpha stage of development. We have a number of potential deals on the table, the most attractive of which is to raise a large sum ($4mm) through a private placement with an investment bank. This…

Check Out Our Lijit Search!

We get quite a few repeat questions – ones that we’ve answered before.  Just to remind everyone, we have a search box on the right hand side of our blog. It’s simply the coolest search tool out there.  Brad has several posts on his blog, but here is one post in particular that explains what the…

How Much Should I Pay Lawyers To Complete My Financing?

Q:  I understand from your term sheet series that Venture Capitalists get their legal fees paid for by the company they are funding.  I have a term sheet with a legal fee cap, but now my VCs are trying to increase the amount saying their legals fees are running higher than expected.  What do you…

Sometimes VCs are Crazy

Well – maybe more often than sometimes.  Bill Burnham has the great VC post of the day up titled Understanding Why Your VC Is Acting Crazy.  Simultaneously, in a deeply rational post, Peter Rip has a Being John Malkovich moment and lets us inside his head with his post titled The Teqlo Adventure.

How Much Should You Raise in a Series A?

There have been lots of great posts about “how much should you raise” going around the blogosphere these days.  Dick Costolo of FeedBurner Google has an excellent one up this morning titled Series A Financing: How Much to Raise?  In addition to a great rambling essay on how much to raise, Dick also reminds all…

Good Fundraising Story and Perspective

I spent some time this afternoon hanging around with my friend Jonathan Weber who runs the online publication New West: The Voice of the Rocky Mountains.  He said he’d been asked about the story of starting New West so many times that he’d written a FAQ titled The New West FAQ for Online Community Journalism…

An Investment Bankers’ View On Brokers in Early Stage Fundraising

(Brad): I got an email from Donna Murdoch at The Keystone Equities Group in Philadelphia taking me to task for the post Jason wrote on 1/17/07 titled Are There Venture Capital Brokers?  Donna – who I do not know – didn’t like our perspective and suggested a different point of view.  I encouraged her to write…

When Should We Start Seeking Our Next Round of Funding?

Q: We received $150k from Friends and Family, and now we’re “on the board” – starting to show up on searches, getting a sale or two a day, and maintaining some growth. We have created a business model that is very scalable and now we’re doing everything we can to grow ourselves. We know that…

Is There A Distinction Between Seed and Early Stage

Question: When pitching a site, what are the distinctions between the seed and early stages of development? Any information about number of users, progress through product development, and progress developing executive team would be greatly appreciated. A (Brad): Not really.  Seed usually refers to the very earliest stages, although it’s hard to define a clear…