I was recently asked by a new entrepreneur for thoughts on “fair terms” for a preferred equity financing. I have been through the negotiating process for a new round, as the new investor and as a company representative, many times, but admit I had never written down how I think about what is “fair” concerning […]
Startup Valuations
Valuation – the monetary value of a company – is the source of much worry on the part of the typical entrepreneur. But it need not be such a tremendous stressor. Certainly, valuation matters, but, for early-stage startups, it is much less a reflection of intrinsic value or accomplishment and much more a product of […]
Making the Most of Startup Advisors
As an investor in startups, I get a lot of questions about advisors. Should we bring on this advisor or that one? How do we compensate advisors? What should I expect an advisor to do? I’ll try to answer these and other questions in this post; I’ll direct my comments to the leaders of startups […]
How Much Capital Should You Raise?
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, […]
Event Best Practices
Some people naturally make a good impression at a cocktail party, fundraiser or conference. Charisma and enthusiasm help, but a few practical habits go a long way as well: Introduce yourself to anyone you don’t see regularly (e.g less than weekly). Many people have trouble remembering names and doing this will put them at ease. […]