5 VC Fund Mechanics That Decide Which Startups Get Backed
I recently hosted a panel at Austin Tech Week on a topic that rarely comes up in Founder circles: how Venture Capital funds actually work. Before the panel, I delivered…
Startup Fundraising
22 posts
Startup Valuation: How Venture Capitalists Value Early-Stage Companies
Startup valuation, often seen as more art than science—and sometimes even as black magic—is a process fraught with ambiguity. Unlike mature businesses with years of historical data and steady cash…
Why Series A Graduation Is So Hard: Lessons from Paul Graham
Securing a Series A round has always been a major hurdle for startups, but recent data highlights just how difficult this milestone has become. Historically, roughly one in four startups…
Speed vs. Perfection: How Top Entrepreneurs Dominate Winner-Takes-All Markets
Operating with diligence is often a decisive factor in startups’ successes. In some industries, the first to market wins. In others, it’s the company that innovates most consistently or serves…
How Liquidation Preference Fuels Conflicts in Venture Capital
Liquidation preference has long been a staple in Venture Capital funding, serving as a financial safeguard for Investors. While it addresses real challenges around risk and financial returns, it’s far…
The 7 Secret Evaluation Criteria Venture Capitalists Use To Make Investment Decisions
Venture Capitalists are vocal about what they look for in startups they invest in: stellar team, large market, scalability, exit routes, etc. What about the evaluation criteria they don’t discuss…
How VCs Help Founders Optimize Seed & Series A Funding Rounds
Most startup funding roadshows fail because Founders don’t ask for a coherent amount of money from potential Investors. How should you determine how much to raise? This post and the accompanying video training help you size your equity raise correctly.
The Problem With SAFEs In Venture Capital
In recent years, Simple Agreements for Future Equity (SAFEs) have skyrocketed in popularity, becoming the de facto instrument for early-stage startup investing. While they offer undeniable advantages, such as speed…
How Experienced Venture Capitalists Analyze Startup Financials
Creating startup financials is, despite claims to the contrary, an essential part of the fundraising process. Solid financial projections based on verifiable data serve both entrepreneurs and Venture Capitalists analyzing…
The 3 Investment Criteria Venture Capitalists Use to Screen Deal Flow
Venture Capitalists must use decisive investment criteria when they evaluate deal flow to determine which opportunities to pursue. Making swift go/no-go decisions allows VCs to allocate more time to the…
Anti-Dilution Ratchets in VC Term Sheets: Should Venture Capitalists Enforce Them?
A recent post by a former entrepreneur-turned-VC reminded me of a basic VC term sheet truth: Everything is negotiable. In particular, clauses that don’t work as intended because they target…
How Venture Capitalists Evaluate Successful Startup Founders
Venture Capitalists always stress that their most important investment criterion is the quality of the startup’s Founding team. What are the characteristics and personality traits Investors are looking for? More…
Love At First Click: The Product-Market Fit Metrics VCs Fall For
When legal tech startup Atrium declared bankruptcy after raising $65 million from prestigious Venture Capital firms, including a16z, co-Founder Justin Kan went public with the lessons he learned from the…
ESOP & RSU: How Employee Stock Ownership Plans Should Be Implemented
Employee ownership plans (ESOW) are a cornerstone of motivation and compensation, yet their complexity often presents a significant challenge. Two forms co-exist: Employee Stock Option Plans (ESOP) and Restricted Stock…
“Owning 51% Gives Founders An Illusion Of Control.” – Guy Kawasaki
Guy Kawasaki is one of the most beloved and recognized figures in the startup world. A former Macintosh “evangelist” and Steve Jobs’s right-hand man, he tried his hand at Venture…
28 Questions VCs Ask Founders Before Investing
Venture Capitalists receive hundreds of investment opportunities annually, making performing quick and effective exploratory due diligence crucial. They need to identify promising startups while swiftly avoiding potential pitfalls. However, data…
The Optimal VC Pitch Deck Structure And Why It Matters
Despite the abundance of resources on the startup pitch deck structure and how to create a compelling presentation for Venture Capitalists, many entrepreneurs underestimate its significance. Simple errors, like omitting…
How Elite VCs Read Startup Pitch Decks In 3 Minutes
Venture Capital is a high-velocity asset class requiring quick go/no-go decisions multiple times daily. Data reveals that Venture Capitalists typically spend just a few minutes on startup pitch decks, either…
Startup Funding: How To Find Investors
One of the main roadblocks to the startup funding process is how to find investors. Most Founders complain that they don’t know any Angels or VCs or can’t find people…
7 Startup Funding Mistakes You Should Avoid
Despite what press clips and social media posts may convey, raising Venture Capital funding is a long and arduous process. Startup funding roadshows often derail because Founders make one of…
How To Connect With Investors on LinkedIn for VC Jobs or To Raise Funds
With close to 900 million users worldwide, of which 40% are active daily, LinkedIn has become the platform of choice for generating business leads. If you’re a startup Founder, chances…
TAM SAM SOM Explained From The Investor’s Point Of View
Calculating TAM SAM SOM correctly will decide whether Venture Capitalists look at your startup’s funding round or move to the next opportunity.