Archives / April, 2008

I Cut The Wrong Deal With An Advisor – Should I Kill It?

Q: I am the co-founder of a startup that is currently in the process of trying to raise an early stage venture round. We recently brought on an advisor who has been incredibly successful in our space and has made introductions to dozens of potential partners and VC firms where he is an investor. He…

VC Perspective on Intellectual Property

So today’s "great post" comes from er… me.  :)  Okay, so my partner Ryan and I did a podcast last week with Larry Nelson of W3W3 and our conversation covered both the intellectual property and patent issues we’ve faced as investors in high-technology companies. We definitely have a love/hate (ok, mostly hate) relationship with patents,…

How Do Startups Find Early Hires?

Q: What I haven’t seen among the blogs, and what I’m hoping you can shed some light on, is how early stage companies go about finding and attracting the right talent. It’d be interesting to hear from you (probably in blog form, I’d reckon) about how the companies you invest in find their talent. Do…

After The Term Sheet

Bill Burnham has today’s best VC blog of the day titled 4 Things to Do After You Get Your First Term Sheet.  As a special bonus, the second best VC blog of the day is Fred Wilson’s post titled From Messes To Successes.  Fred had a post in him titled "From Moths to Butterflies" but…

Do I Need a Team To Raise Venture Capital?

Q: How important is having a partner?  As a sole entrepreneur that’s investigating venture capital, is having a partner typically required? What are the justifications to requiring a partner? If I pursue a venture capital firm without a partner or team, is that a show-stopper?  Can I explain that finding a partner is difficult, or…

Does Having a H1B-Visa Founder Preclude Venture Investment?

Q:  Does having an H1B founder (among other non-H1B founders) inherently prevent a startup from being funded? For example, what if a U.S. citizen creates the company which receives funding, and then applies for the H1B founder to join as a regular employee and then issue a founder-sized portion of the company stock? One possible…

Do I Pick A Venture Capitalist Based On Money or Guidance?

Q:  I self-financed and run a profitable Internet based start-up with more customers than I can handle. I can take the business to where it needs to be without outside funding. However, it will take much longer to grow organically. I’ve considered working with financiers for guidance and capital. What is the best route to…

Tranched Financings

Q: What type of structure have you seen where the VC agrees to fund over some time period 18-24 months and up to some level. A: (Brad): These are commonly called "Tranched Financings."  The typical approach is that a VC commits to fund a specific amount in multiple "tranches" based on the company achieving some…

What’s The Best Material for the Pre-Pitch Introduction to a VC

Q: What do you expect to see from an entrepreneur whom you don’t know or have a casual introduction to before scheduling time to listen to a pitch? A one-pager? A complete powerpoint? A classic business plan or a casual one? A: (Brad) While everyone is a little different, I’m pretty simple.  Optimally, I’d like…