General QandA

Who Are Stock Certificates Issued To and When?

Q: We are a Delaware C Corp registered as a Foreign Entity in Colorado our home state and we need to figure out the answers to the following questions with regards to stock certificates. 1. Who gets stock certificates issued and when?              My assumptions are that cash investments DO get certificates,…

Ask the VC Live (Update) and Start Up Drinks

As previous posted, I’m presenting at the University of Colorado a 1.5 hour "crash course" lecture on the VC industry. There are two updates: 1. The program is February 24th (not 25th, as originally posted) at 5:15 at the CU law school.  You can find more information here.  2. Several folks are getting together and…

Ask the VC Live (Update) and Start Up Drinks

As previous posted, I’m presenting at the University of Colorado a 1.5 hour "crash course" lecture on the VC industry. There are two updates: 1. The program is February 24th (not 25th, as originally posted) at 5:15 at the CU law school.  You can find more information here.  2. Several folks are getting together and…

Ask The VC – Live

For those of you in the Boulder/Denver area, I’m giving a 1.5 hour "crash course" lecture on the VC industry.  The program is February 24th at 5:15 at the CU law school.  You can find more information here.  The topics will include everything from what makes VCs tick, who are our bosses, what are things…

Are Eyeballs Good Enough?

Q: In the era of "free" software, would a mobile software startup be committing short-sighted suicide by attempting to price their product at all? These days, it seems that "eyeballs" are considerably more valued than short-term monetization.  Facebook being a prime example:  they avg a mere $3.00 in gross revs per active user annually, but…

Do All Venture Capitalists Come From Harvard or Stanford?

Q: I am wondering why is it that the vast majority of all VC partners either come from Harvard or Stanford? A: (Jason)  I’ll tell you as a University of Michigan guy, it certainly seems like a lot of VCs have pedigrees from Harvard or Stanford, but plenty of folks have degrees from other places…

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…

Do Credit Market Problems Affect the Venture Capital Industry?

Q: How do/will market corrections like we’ve seen in the US affect venture funds and venture funding, even if concerns are supposedly only about the housing credit market? A: (Jason). No one can say for sure, but some folks think the credit crunch will be helpful to VC fund raising. The idea is that with…

Why Are Venture Capitalists So Hard To Deal With?

One of the questions that we get most often is “why are VCs such jerks?” or some sort of derivation thereof. Specifically, people complain about: – VCs not returning calls / being unresponsive – VCs not understanding how good of an investment my company is – VCs stringing along entrepreneurs when they know they aren’t…