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 to Get a Venture Capital Job
I am often asked how to get a job in venture capital. Is there an optimal path to a career venture capital? How much operating experience do I need? Should I get an MBA? Like most venture capitalists, I did not follow an obvious path into the industry. I studied Mechanical Engineering in college, worked […]
The Unfair Advantage
I’m often asked what I look for in a company when considering investing. There are a variety of factors that I consider, some of which I’ve written about in other blog posts, many of which other smart people have described eloquently. One important factor that doesn’t get as much attention is what I call the […]
The Meaning of Trust Between Management and Investors
This infographic summarizes a recent study on branding in venture capital by marketing consultancy DeSantis Breindel. For companies seeking venture capital and those of us in the industry, the infographic will probably mostly elicit head nodding, but there are a couple of somewhat interesting nuggets. It’s not surprising that entrepreneurs and venture capitalists believe that an entrepreneur-friendly […]
The VC Seed Bogeyman
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 […]