Archives / October, 2007

How Good Angel Groups Work

David Cohen – the ringleader of TechStars – has a good post up titled Thoughts from the west out east, and vice versa.  Last week David was a guest speaker at the Northeast Regional Investor Conference held in Portsmouth, NH.  In addition to running TechStars, David is an active angel investor in Colorado and had a…

Eek – A Competitor Just Raised $50 Million – Now What?

Today’s great post(s) come from Ken Gaebler and are titled My Competitor Raised $50 Million – Great! and conversely My Competitor Raised $50 Million – Yikes!  Ken did a nice job of being both an optimist and a pessimist around the issue – and addresses a bunch of the opportunities and concerns that ensue.

Places to Find Developers in Exchange for Sweat Equity

Question: I am in the process of getting my startup venture off the ground and have run into a slight road block.  I have developed the business case, and fleshed out the product requirements, but need a strong developer to the product.  Problem is, I have not gotten any funding yet, therefore cannot pay someone…

How Much Equity Should an Early Stage COO/CFO Get?

Q: We are a virtual company that will operate very lean. I am hiring a COO/CFO at the moment, and am wondering what share grant would be appropriate. I have seen CEOs recruited into startups receive something like 5%. Are there rules of thumb? A (Brad): We’ve got plenty of posts around this general topic…

The Next 20 Hires

I love it when Dick Costolo fires up his virtual pen and lets the words flow.  Today’s post titled Too Many Chiefs of Too Many Indians (a total of 1,218 words) is an excellent treatise on who to hire early in the life of your company.  More specifically, it answers the questions “should I hire…

The Role of an Early Stage Board of Directors

I have 57 unanswered questions in my “AsktheVC” folder.  There are 77 days left in 2007.  That’s less than one a day.  I should be able to get the folder to 0 by the end of 2007.  Nothing like a little goal.  Of course, that assumes no new questions which you – fair reader –…

How Can An Entrepreneur Fundraise Without Getting In Trouble With the SEC?

Q:  If an entrepreneur is out meeting with people in order to find investors in a round of financing, is this “soliciting” investments in the eyes of the SEC?  It is my understanding that the SEC doesn’t permit solicitations” unless there is a pre-existing relationship.  Therefore, if the entrepreneur doesn’t have a pre-existing relationship before he starts making…

Getting To No – Quickly

Don Dodge has today’s great post up titled Failing Fast It’s a good thing.  Don’s a smart guy, an experienced entrepreneur, and has become a good friend.  His blog – Don Dodge on The Next Big Thing – is required reading for entrepreneurs, especially if you have any interactions with Microsoft.

When A VC Says “I Need 20% Of The Company”

Today’s great post is from Fred Wilson titled The Fiction of 20%.  If you’ve ever negotiated with a VC, you’ve likely heard something like “I need at least 20% of the company to make the deal work.”  Fred has a great rant on why this is – is in his words – rubbish. 

Great Book on Legal Issues Affecting Entrepreneurs

We get a ton of legal questions on this site.  We can’t answer them because if we act as your lawyers, you can sue us.  That would not be fun.  However, fear not, there is a GREAT book on most all of the issues that affect the entrepreneur.  The Entrepreneurs Guide to Business Law.  The book’s co-author…