Archives / August, 2007

How Will the New Tax Laws on Carry Affect Venture Capitalists?

Q: What’s going on with the changing tax situation on the “carry” relating to VC funds? Is it finalized? And how will this affect the VC market, if at all? A: (Jason). Sandy Levin (from the great state of Michigan) introduced a bill recently to tax carried interests (“carry” or profit) as ordinary income, versus…

Does My Company Have to Exist to Get Funding?

Q: Does your company have to exist in order to get VC funding? I have an idea for a Web 2.0 company for which I have a business plan and a mockup, but I have not launched it to the public. Do VC firms even consider funding businesses that have not actually gone live? A:…

Why Doesn’t My Question Get Answered on Your Website?

One question we’ve started getting lately is “why haven’t you answered my question yet?  How do you decide which questions get answered?”  First of all, we apologize for any tardiness we have in answering your questions.  We’ve been very pleasantly surprised by all of the interest and great questions asked from the blogosphere.  The downside is…

What’s the Climate for Venture Fundings In China?

Q: How difficult is it to get venture financing in China? What is the general climate? A: (Jason) Seemingly after “everyone” setting up a China office / strategy and investing overseas, according to one report by NVCA and Deloitte and Touche, it’s not as easy as one thought. Certainly, it’s more common for foreign start…

Creating a Board of Directors During an Angel Round

Q: We are in the process of raising early financing. Should the board be built after money is raised to meet the needs of the company and investors or should the board be used as a method to recruit angel investors? A: (Brad) I view the creation of a board and the raising of an…

Quick Overview of Preferred Stock

Matt McCall of Portage Ventures has the VC post of the day up titled Term Sheet 101: Preferences.  It looks like Matt is working on a Term Sheet 101 series which would go nicely with the Term Sheet series that Jason and I wrote a while ago on Feld Thoughts.

Can You Conduct A Confidential Venture Capital Job Search?

Q:  I am part of the founding management team of a start-up. We are backed by a few well known VC’s. While I think the prospects of the company are good, I am entertaining the thought of moving into venture capital. I have a number of contacts in the venture capital community from grad school…