The VC Seed Bogeyman

22nd November, 2012 No Comments Blog , Fundraising , Venture Capital

There is a popular discussion, which occasionally becomes a debate, about the risks inherent in taking seed financing from a venture capital firm (as opposed to taking it exclusively from angel investors).  The most commonly-cited “risk” is that of signaling:  if the VC firm does not invest in the company’s subsequent (Series A) financing, no […]

Why Founders Should Vest

24th October, 2012 No Comments Blog , Venture Capital

My experience has been that most founders have not thought about vesting their own shares before raising outside capital for the first time.  I think they should, in most cases, vest their shares of their own accord, even before talking to an outside investor. Vesting, for those unfamiliar with the term, refers to earning equity […]

Financing as a Means to an End

3rd September, 2012 No Comments Blog , Fundraising , Venture Capital

All too often, I read or hear about a company receiving angel or venture capital financing as if the new funding were an end in itself – an accomplishment indicating success.  Stories in the popular press and casual observers might remark that a company has been “funded,” as though its future is thereby secure.  To […]