An Open Letter to Other VCs

8th April, 2016 No Comments Blog

To Whom It May Concern, As may already have happened, my firm, CoVenture, will occasionally send you investment opportunities.  When these companies are from our portfolio, we obviously know them well and are sending them to you because we feel they are, in some sense, ready for additional capital and the next phase of development.  […]

What Is Pre-Seed?

28th February, 2016 No Comments Startups , Venture Capital

I was talking with a group of accomplished technologists this week – academics, former entrepreneurs – discussing the fundraising strategy for a company that has raised some angel funding.  At one point, there was discussion of a “Series A” financing in the near-term future of the company.  The company was not ready for a Series […]

Principles of Good Projections

31st January, 2016 No Comments Startups , Venture Capital

This post was written for founders of relatively new businesses…   it started as an e-mail to one such founder about how to build an early financial model and, in particular, how to project revenue. I suggest you not try too hard (if at all) to make revenue projections until you start selling, or at […]

Valuing Startup Common Stock

23rd December, 2015 No Comments Recruiting , Venture Capital

Over the years, I have had many occasions to talk about company valuations with founders.  Whether negotiating the terms of an investment or discussing option grants at board meetings, the topic is central to the relationship between a company and its closest stakeholders – its shareholders.  But while much has been written about company valuations and the […]

How Much Capital Should You Raise?

24th November, 2015 No Comments Blog , Fundraising

Entrepreneurs embarking on a fundraising process struggle with this question.  Will you suffer too much dilution by raising too much?  Do you need to raise at least a certain amount to get the attention of certain investors?  What if you set your sights too high and fall short? I suggest that the answer is fairly simple, […]