asterisk2a + openangelforum   5

Bad Notes on Venture Capital
Me: Yup. I see that all the time. I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. But most VCs don’t bother so many convertible note founders get screwed and never know it until they sell their companies. My colleague: Whoa. Me: Yup. The whole industry has strangely accepted this artificial structure for all the wrong reasons. There are a million ways to do quick, easy, low-cost rounds with prices. There are a bunch of ways to offer cheaper pricing to people who commit early without notes. But founders these days seem strangely unfocused on finance and on terms that could hurt them even though we fought to the death about these same terms 10 years ago. [...] I have never come across a sophisticated A, B or C round venture capitalist who thinks convertible notes are a smart move for entrepreneur or investor. // via
convertible  note  convertible  notes  seedround  seedfunding  openangelforum  angelinvestor  angelinvestors  Venture  Capital  Start-Up  advice  Start-Up  lesson  VC  Mark  Suster  funding 
september 2014 by asterisk2a
Is everything we know about what makes a good VC just wrong? | PandoDaily
Still, I’ve heard that idea — operational experience as the mark of a great investor — countless times in the past twelve months. As a founder, I resonate with everything everyone says about good and bad investors on an emotional level. I used to think entrepreneurs were too whiney about interfering board members and VCs. Guys, they gave you millions of dollars to build your dream with no obligation on the downside should you completely blow it and lose it all! You think they shouldn’t have a say in the company? But I get it now. I can’t tell you how times in the past two and a half years I’ve said the words “easier said than done.” The worst conversations are ones where investors say something like: “Have you thought about hiring a world class sales guy?” [...] THERE IS NO 'apply this' PLAYBOOK. [VC's & Co are in THE SERVICE BUSINESS. Entrepreneurs are their customers. LPs ar their shareholders.]
Start-Up  lesson  Start-Up  advice  Venture  Capital  angelinvestor  openangelforum  angel-list  angelinvestors  VC  seedround  seedfunding  execution  Silicon  Valley  Palo  Alto 
july 2014 by asterisk2a
- Venture Capital - This Week in Venture Capital - Mark Jeffrey, CEO of ThisWeekIn - YouTube
Brad Feld, Fred Wilson, Suster - - Blogs, + Quora, ... Mark Suster "execution tends to win." talking about copycats and me too start-ups, get an introduction from existing/past portfolio companies. Hustle. It's unacceptable not to be able to figure out how to get access other than in a straight line via email on persons homepage. || people now, with lower barrier of entry - MVP, - ppl wanna see product. + PLUS + financial models !!! business model / plan - the economics. - have a plan for the basics of the company ~2-3 quarters into the future while keeping the vision in mind.
Start-Up  lesson  Start-Up  advice  Deck  pitch-deck  pitch  elevator  pitch  pitching  pitch  execution  creativity  Hustle  authentic  Venture  Capital  seedround  seedfunding  angelinvestor  openangelforum  angel  list  open  angel  forum  TheFunded  sales  focus  focused  Chutzpah  MVP  Minimal  Viable  Product  business  model  businessplan  businessmodel  business  plan  businessmodels 
june 2014 by asterisk2a

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