Entrepreneurs often ask, “when is the right time to raise capital?” Generally, they are asking about the best timing for approaching venture capitalists and/or professional angel investors for a new equity financing. I think there are really only three answers to this question, though there are nuances to each answer: To accelerate growth: You are […]
Smart Data, the Next Big [Data] Thing
Sailthru, a current Gotham Ventures portfolio company, just announced a $19 million Series B investment led by Benchmark Capital. Gotham participated in the funding, having led the seed round for Sailthru in 2010 and participated in the A round last year. Prior co-investors RRE and AOL Ventures also participated. I’m excited about the funding and […]
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 […]
Financing as a Means to an End
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 […]