fundraising

What Costs Are Considered Reimbursable To The Founders Of A Startup Company?

Q: What costs are considered reimbursable to the founder of a start-up company?  More specifically, if the founder has been boot-strapping his company since inception, and he agrees to a series a term sheet with a VC firm, are the operational costs incurred by the founder between this time and the closing of the round…

Brisbourne: The Math Behind Anti-Dilution (With Examples)

Well – I fell off that particular horse. That would be the “I’ll blog daily about the best VC blog post of the past 24 hours.” I could make some snarky comment about how there weren’t any for the last few weeks, but that wouldn’t be true. I just fell of the horse. But yesterday,…

Do You Need To Be A Corporation To Raise VC Funding?

Question: Does one need to switch an LLC to a corporation to raise VC funding? Would you recommend starting out as a corporation pre-money or as an LLC? The short answer is yes, you have to be a corporation to raise VC funding VCs will want you to be a C-Corp for a few specific…

What Should You Do When An Investor Asks You For A Business Plan?

Dan Shapiro has an excellent post up titled What to do when an investor asks you for your business plan. In it he addresses something we missed in Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist. In the section where we discuss business plans, we say: “We haven’t read a business plan in…

If An Entrepreneur Has Children, Does It Impact Funding Decisions?

Question: What is your take on entrepreneurs who have young children or otherwise active family lives?  Is this a factor in funding decisions?  I try to live with a family-first mentality but find it hard to compete with young unattached entrepreneurs who can put startup-first. My answer is simple – this shouldn’t be a factor…

Roberts: You Can Never Size a Market in Excel

Bryce Roberts (OATV) totally nails it in his post titled You Can Never Size a Market in Excel. The punch line is: “In every single case that I’ve seen this question (“how big can it get”) persist over more than 2 meetings, it has NEVER been resolved. NEVER.” There’s plenty of great stuff in the post…

Wilson: Pricing A Follow-On Venture Investment

It’s Monday and that means – yup – that Fred Wilson (USV) once again claims the VC Post of the Day due to his excellent MBA Mondays series titled Pricing A Follow-On Venture Investment. In it, Fred walks through an example, with real numbers, of how USV thinks about valuing an inside-led round for a…

When Financings Fall Apart

Rand Fishkin, the CEO & co-founder of SEOmoz, has an long, thorough, and incredibly detailed blog post up about The $24 Million Moz Almost Raised. Rand does an awesome job of providing extensive details while maintaining confidentiality of the participants. The story covers the full lifecycle of the VC fundraising process, beginning with Rand and his…

Levine: Should The Current Market Environment Change Your Fundraising Strategy?

Today’s VC Post of the Day is from my partner Seth Levine (Foundry Group) and is titled Should the current market environment change your fundraising strategy? I think it’s right on the money and captures / synthesizes much of the valid advice flying around from VCs and pundits about how entrepreneurs should think about fundraising right now. Do yourself…

Wegner: If You Need To Raise Money, Get Your Financing Done ASAP

Albert Wegner (Union Square Ventures) has today’s VC Post of the day titled If You Need To Raise Money, Get Your Financing Done ASAP. In it, Albert expresses his belief that given the current macro economic environment, companies should focus on getting their money raised quickly – as in right now. He’s conveying global / macro…