LBAN would like to share with you some interesting texts which we update on a regurlar basis:
How to be an Angel Investor…and make money
Angel Investors are a special breed. They take on the riskiest investments at the earliest stage where VCs will not engage. That’s why they call them angels. For a struggling entrepreneur they are heaven sent.
Suggestions for angel investors
On the eve of the graduation of the TechStars Boston 2010 class, I thought I’d weigh in with some additional advice to anyone who either is or wants to be an angel investor
Raising Angel Money
This post is part of a series of posts called “Pitching a VC” that explains how to get access to VC’s, what to say when you get there and what will happen afterward.
Ten unconventional wisdoms for funding startups
Here’s a summary of Ravikant’s points about how entrepreneurs should approach fundings.
Ten Critical Steps to writing a Business Plan
Starting a business is a major commitment that will consume 24/7 of your life with no end in sight. It is always good to know what you are getting into before you take the plunge
Don’t Blow Your Pitch
While there’s no shortage of reading about “how to pitch for funding”, from what we can tell, a lot of what’s written isn’t soaking in too well. So we thought we’d try a more unconventional approach.
The Dance of Entrepreneurship
There are broadly three phases of entrepreneurship
1. The Beginning
2. The Journey
3. The New Beginning ( Yes, It’s Not the Destination )
Exit Outcomes: ACA’s John Huston
This is an interview with John Huston, the chairman of the Angel Capital Association. The topic is “Ever wanted to hear how angels think of the terms they offer and the returns they expect? And what will happen if the outcome is less than a complete success?”
Super Angels Shake Up Venture Capital
As large VC firms cut back, a hungry bunch of seed-stage investors are helping entrepreneurs get their ideas off the ground
The Post Mortem of a Venture-backed Start-up
Entrepreneurship is more about failure than success, both statistically and emotionally. Most start-ups fail. You can only succeed if you are prepared to fail along the way and the world’s best entrepreneurs have failed over and over en route to changing the world.
Communications Advice for Pitching Venture Capitalists
I reinforce that having a clear message is really important. If you get off on the wrong foot in a presentation and can’t clearly definite your value proposition, you risk losing the interest of the VC and never getting it back.
Start-Up’s Algorithm for Success
There’s no formula to make sure a sitcom, a magazine article or a movie will draw audiences, let alone ad dollars. Figuring out what to write or produce often comes down to a crapshoot.
Thinking about business models
A business model is the architecture of a business or project. It has four elements:
IAC Buys UrbanSpoon Based On Good Recommendations
UrbanSpoon, a restaurant recommendation service, started out with a simple plan. It was three former Jobster employees, Ethan Lowry, Adam Doppelt and Patrick O’Donnell who set out to see if they could build a company in today’s world without needing any traditional outside investments.
Keep It Simple, Stupid
K-I-S-S: Keep It Simple, Stupid. It’s a mantra that always pops into my head when I’m looking at new startups.
Free Online Term Sheet Generator
If I didn’t see it with my own eyes, I wouldn’t believe it, but Wilson, Sonsini, Goodrich, and Rosati, one of Silicon Valley’s dominant law firms (as in Apple, HP, etc), has created a free, online term sheet generator.
Reid Hoffman: My Rule of Three for Investing
As a serial investor, I’ve enjoyed backing some good Web 2.0 companies, and it’s helped me develop a shortlist of criteria to cut the wheat from the chaff. After five minutes of a pitch, I know if I’m not going to invest, and after 30 minutes to an hour, I generally know if I will.
VC-Fueled Startups See Bigger Deals, Fewer Funds
Despite the recession, venture firms with solid track records continue to secure sizable commitments, two industry groups find.
Find Your Business’s Profit
If you know where your company’s profits come from, you truly understand your business model—and that’s what gives your business the freedom to grow.
Are You Clear for Takeoff?
However, there’s also something else that gets evaluated..the first impression of those pitch materials. Are they clear, concise, and compelling?
Great Entrepreneurs’ Secret
Instead of DNA, great entrepreneurs are actually made up of SGL: smarts, guts, and luck.
Kleiner’s Laws
Eugene Kleiner created Kleiner Perkins, one of the most successful venture capital firms known for backing ventures like google, Sun Microsystems, Amazon and AOL. Kleiner was known for his business wisdom often referred to as “Kleiner’s Laws.”
Viele Gründerteams sind stümperhaft zusammengesetzt
Im Interview erklärt er, was Gründer zwingend beachten sollten, berichtet von den Besonderheiten des deutschen Marktes und sagt, warum er seinen Studenten empfiehlt, ihre berufliche Karriere nicht in den großen Konzernen, sondern im Mittelstand zu starten.
Stimulus 2.0: It’s The Startups, Stupid.
Reid has some strong opinions about how startups can help right the economy, and he offers some suggestions below.
Crash Course on Venture Capital
I’ve received some requests to see the materials from the presentation last week. Video should be arriving at a later date, but for now, here are the slides.
The Art of Execution
When a man tells you that he got rich through hard work, ask him: “Whose?”—Don Marquis
Getting Attention from VCs and Angel Investors If You Are Young
If you are in college or a recent graduate, you are starting a company, and are looking to raise money, this is a helpful article.
Everything I Need to Know About Entrepreneurship
I Learned From My Comrades in Moscow.
Valuing Startups
Today’s best post is from my partner Jason Mendelson and is titled What’s The Value Of My Startup? In it, Jason covers many of the inputs that go into a VC’s mind when coming up with the valuation for a startup.
Flat Is NOT The New Up
Yes, it’s a really bad macro-economic environment — the worst most of us have ever seen in our lifetimes. Yes, it is really hard to raise money.
The Art of Bootstrapping
In early childhood you may lay the foundation of poverty or riches, industry or idleness, good or evil, by the habits to which you train your children. Teach them right habits then, and their future life is safe.—Lydia Sigourney
A Scary Line Has Been Crossed For VCs
At a recent presentation at Harvard Business School, Adeo Ressi argued that the VC model is broken. That is nothing new for Ressi, who is the founder of the VC-rating site theFunded.
What To Do When You Are In A Circular Discussion With A VC
Q: I am part of a tech start-up that’s in a slight conundrum. In order to place our product in its market, we’ve had to provide it to customers free of charge.
LearnVC - A Web Resource About Venture Capital for Entrepreneurs and Investors
Early this year Jeff Boardman approached me and Jason about a new web site he was working on called LearnVC.
Brad’s VC Rules on ‘No’
What’s worse than getting rejected? It’s being rejected by the same investor, over and over and over again.
Through a Realistic Lense
Fred has a fantastic blog up titled Capital Efficiency Finds It’s Moment. It - combined with his posts My Thoughts On “Startup Depression” - are full of suggestions that entrepreneurs should be thinking about and taking action on right now. They are both completely consistent with my post Ok Entrepreneurs, Time to Step Up.
Angel Investors Fly Steady
Signs of global economic distress notwithstanding, U.S. angel investors kept a steady pace in funding startup companies in 2008’s first half, a new study says.
SGN Founder’s Rambling, Jetlagged, Semi-Lucid and Beautiful Email On Entrepreneurism
SGN founder Shervin Pishevar, jetlagged and sleep deprived on a “secret mision” trip to Eastern Europe, wrote a long and partially lucid email to friends last night. I reprint it here because it captures much of the entrepreneurial spirit that drives so many of the men and women who we write about.
Angel Group Financing Guide, Part 2
In part 1, Don Jones introduced you to the world of angel investors. In part 2, he details how to approach angel groups and prepare your executive summary and business plan. Insight into how angel groups evaluate deals will help you prepare and present your material for the best chance at closing a deal.
Taking a hit like a man: Morten Lund on Nyhedsavisen’s death
“Call me stupid - not trustworthy - whatever - it’s OK - I fucked up. I take all responsibility. It was MY MONEY (and all I had and had access too) - and it will be 18-24 months in hell from here - but I will start and invest with my knowledge and build companies for life - and I’m scared but not stopping - Im just back to ventures without money. Sorry.”
Angel Group Financing Guide, Part 1
Are Angel Groups Right For You?
The first question to ask yourself as an entrepreneur is whether angel groups are right for you and your company. To gain insight into that question, you should understand where angel groups fit into the “funding chain.”
How About a Plan B for Fund Raising?
Over at the American Express Open Forum blog, I’ve posted a description of “Plan B” for fund raising. Plan B is 180 degrees from the usual venture-capital path. Check it out by clicking here. If you go with the usual Plan A, don’t say I didn’t warn you.
Five most important lessons I’ve learned as an entrepreneur.
This is my last posting for my friends at Sun Microsystems, and I’d like to leave you with something that to remember me by: a list of the five most important lessons I’ve learned as an entrepreneur.
Is Dilution Considered When Talking About Equity Ranges?
Q: When we talk about the equity percentage numbers for those directors and other early participants, are these numbers based on the total number of shares prior to a funding event or does the base share number include those allocated for investors as well?
How Should I Approach a VC I Don’t Know?
Every entrepreneur who has raised venture capital has heard it a thousand times—the best way to approach a venture capitalist is via a warm introduction.
The Art of Visual Thinking
In the venture capital business, many people think that a short pitch is thirty slides and a short business plan is fifty pages.
Imagine a Bigger Market and You’ll See a Bigger Market
Scientists in two studies at the University of Virginia discovered that softball players and golfers who had good days perceived balls and golf holes as larger than the players who had bad days.
Should I Pay My Lawyer A Success Fee For Venture Capital Intros?
Q: My lawyer is asking for a “success fee” for a referral to a potential investor in my business.
Strategic Entrepreneurism in the New Economy
Designing a startup for acquisition means software entrepreneurs must follow a new path to success.
I’ve Got Angels Who Want To Invest But Not Lead - Now What?
Q: I have several angels that say the want to invest but non of them wants to lead. In your experience: 1) Is this a “call option” strategy rather than a serious investment intent? 2) any thoughts on how to turn “co investors” into lead? or should I try to get a lead of this “co investors” pack?
A VC’s View on Why Startups Fail
An entrepreneur recently asked me why startups fail. Startups fail because they run out of money. You’re probably thinking, “Tell me something I don’t already know!” Read on and you’ll see that statement is deceptive in its simplicity
How Did We Get Our Idea For Our Startup?
Q: We just started looking for venture funding and I have a question. Why do VC’s ask us how our idea came about?
How to be an Angel Investor…and make money
Angel Investors are a special breed. They take on the riskiest investments at the earliest stage where VCs will not engage. That’s why they call them angels. For a struggling entrepreneur they are heaven sent.
Suggestions for angel investors
On the eve of the graduation of the TechStars Boston 2010 class, I thought I’d weigh in with some additional advice to anyone who either is or wants to be an angel investor
Raising Angel Money
This post is part of a series of posts called “Pitching a VC” that explains how to get access to VC’s, what to say when you get there and what will happen afterward.
Ten unconventional wisdoms for funding startups
Here’s a summary of Ravikant’s points about how entrepreneurs should approach fundings.
Ten Critical Steps to writing a Business Plan
Starting a business is a major commitment that will consume 24/7 of your life with no end in sight. It is always good to know what you are getting into before you take the plunge
Don’t Blow Your Pitch
While there’s no shortage of reading about “how to pitch for funding”, from what we can tell, a lot of what’s written isn’t soaking in too well. So we thought we’d try a more unconventional approach.
The Dance of Entrepreneurship
There are broadly three phases of entrepreneurship
1. The Beginning
2. The Journey
3. The New Beginning ( Yes, It’s Not the Destination )
Exit Outcomes: ACA’s John Huston
This is an interview with John Huston, the chairman of the Angel Capital Association. The topic is “Ever wanted to hear how angels think of the terms they offer and the returns they expect? And what will happen if the outcome is less than a complete success?”
Super Angels Shake Up Venture Capital
As large VC firms cut back, a hungry bunch of seed-stage investors are helping entrepreneurs get their ideas off the ground
The Post Mortem of a Venture-backed Start-up
Entrepreneurship is more about failure than success, both statistically and emotionally. Most start-ups fail. You can only succeed if you are prepared to fail along the way and the world’s best entrepreneurs have failed over and over en route to changing the world.
Communications Advice for Pitching Venture Capitalists
I reinforce that having a clear message is really important. If you get off on the wrong foot in a presentation and can’t clearly definite your value proposition, you risk losing the interest of the VC and never getting it back.
Start-Up’s Algorithm for Success
There’s no formula to make sure a sitcom, a magazine article or a movie will draw audiences, let alone ad dollars. Figuring out what to write or produce often comes down to a crapshoot.
Thinking about business models
A business model is the architecture of a business or project. It has four elements:
IAC Buys UrbanSpoon Based On Good Recommendations
UrbanSpoon, a restaurant recommendation service, started out with a simple plan. It was three former Jobster employees, Ethan Lowry, Adam Doppelt and Patrick O’Donnell who set out to see if they could build a company in today’s world without needing any traditional outside investments.
Keep It Simple, Stupid
K-I-S-S: Keep It Simple, Stupid. It’s a mantra that always pops into my head when I’m looking at new startups.
Free Online Term Sheet Generator
If I didn’t see it with my own eyes, I wouldn’t believe it, but Wilson, Sonsini, Goodrich, and Rosati, one of Silicon Valley’s dominant law firms (as in Apple, HP, etc), has created a free, online term sheet generator.
Reid Hoffman: My Rule of Three for Investing
As a serial investor, I’ve enjoyed backing some good Web 2.0 companies, and it’s helped me develop a shortlist of criteria to cut the wheat from the chaff. After five minutes of a pitch, I know if I’m not going to invest, and after 30 minutes to an hour, I generally know if I will.
VC-Fueled Startups See Bigger Deals, Fewer Funds
Despite the recession, venture firms with solid track records continue to secure sizable commitments, two industry groups find.
Find Your Business’s Profit
If you know where your company’s profits come from, you truly understand your business model—and that’s what gives your business the freedom to grow.
Are You Clear for Takeoff?
However, there’s also something else that gets evaluated..the first impression of those pitch materials. Are they clear, concise, and compelling?
Great Entrepreneurs’ Secret
Instead of DNA, great entrepreneurs are actually made up of SGL: smarts, guts, and luck.
Kleiner’s Laws
Eugene Kleiner created Kleiner Perkins, one of the most successful venture capital firms known for backing ventures like google, Sun Microsystems, Amazon and AOL. Kleiner was known for his business wisdom often referred to as “Kleiner’s Laws.”
Viele Gründerteams sind stümperhaft zusammengesetzt
Im Interview erklärt er, was Gründer zwingend beachten sollten, berichtet von den Besonderheiten des deutschen Marktes und sagt, warum er seinen Studenten empfiehlt, ihre berufliche Karriere nicht in den großen Konzernen, sondern im Mittelstand zu starten.
Stimulus 2.0: It’s The Startups, Stupid.
Reid has some strong opinions about how startups can help right the economy, and he offers some suggestions below.
Crash Course on Venture Capital
I’ve received some requests to see the materials from the presentation last week. Video should be arriving at a later date, but for now, here are the slides.
The Art of Execution
When a man tells you that he got rich through hard work, ask him: “Whose?”—Don Marquis
Getting Attention from VCs and Angel Investors If You Are Young
If you are in college or a recent graduate, you are starting a company, and are looking to raise money, this is a helpful article.
Everything I Need to Know About Entrepreneurship
I Learned From My Comrades in Moscow.
Valuing Startups
Today’s best post is from my partner Jason Mendelson and is titled What’s The Value Of My Startup? In it, Jason covers many of the inputs that go into a VC’s mind when coming up with the valuation for a startup.
Flat Is NOT The New Up
Yes, it’s a really bad macro-economic environment — the worst most of us have ever seen in our lifetimes. Yes, it is really hard to raise money.
The Art of Bootstrapping
In early childhood you may lay the foundation of poverty or riches, industry or idleness, good or evil, by the habits to which you train your children. Teach them right habits then, and their future life is safe.—Lydia Sigourney
A Scary Line Has Been Crossed For VCs
At a recent presentation at Harvard Business School, Adeo Ressi argued that the VC model is broken. That is nothing new for Ressi, who is the founder of the VC-rating site theFunded.
What To Do When You Are In A Circular Discussion With A VC
Q: I am part of a tech start-up that’s in a slight conundrum. In order to place our product in its market, we’ve had to provide it to customers free of charge.
LearnVC - A Web Resource About Venture Capital for Entrepreneurs and Investors
Early this year Jeff Boardman approached me and Jason about a new web site he was working on called LearnVC.
Brad’s VC Rules on ‘No’
What’s worse than getting rejected? It’s being rejected by the same investor, over and over and over again.
Through a Realistic Lense
Fred has a fantastic blog up titled Capital Efficiency Finds It’s Moment. It - combined with his posts My Thoughts On “Startup Depression” - are full of suggestions that entrepreneurs should be thinking about and taking action on right now. They are both completely consistent with my post Ok Entrepreneurs, Time to Step Up.
Angel Investors Fly Steady
Signs of global economic distress notwithstanding, U.S. angel investors kept a steady pace in funding startup companies in 2008’s first half, a new study says.
SGN Founder’s Rambling, Jetlagged, Semi-Lucid and Beautiful Email On Entrepreneurism
SGN founder Shervin Pishevar, jetlagged and sleep deprived on a “secret mision” trip to Eastern Europe, wrote a long and partially lucid email to friends last night. I reprint it here because it captures much of the entrepreneurial spirit that drives so many of the men and women who we write about.
Angel Group Financing Guide, Part 2
In part 1, Don Jones introduced you to the world of angel investors. In part 2, he details how to approach angel groups and prepare your executive summary and business plan. Insight into how angel groups evaluate deals will help you prepare and present your material for the best chance at closing a deal.
Taking a hit like a man: Morten Lund on Nyhedsavisen’s death
“Call me stupid - not trustworthy - whatever - it’s OK - I fucked up. I take all responsibility. It was MY MONEY (and all I had and had access too) - and it will be 18-24 months in hell from here - but I will start and invest with my knowledge and build companies for life - and I’m scared but not stopping - Im just back to ventures without money. Sorry.”
Angel Group Financing Guide, Part 1
Are Angel Groups Right For You?
The first question to ask yourself as an entrepreneur is whether angel groups are right for you and your company. To gain insight into that question, you should understand where angel groups fit into the “funding chain.”
How About a Plan B for Fund Raising?
Over at the American Express Open Forum blog, I’ve posted a description of “Plan B” for fund raising. Plan B is 180 degrees from the usual venture-capital path. Check it out by clicking here. If you go with the usual Plan A, don’t say I didn’t warn you.
Five most important lessons I’ve learned as an entrepreneur.
This is my last posting for my friends at Sun Microsystems, and I’d like to leave you with something that to remember me by: a list of the five most important lessons I’ve learned as an entrepreneur.
Is Dilution Considered When Talking About Equity Ranges?
Q: When we talk about the equity percentage numbers for those directors and other early participants, are these numbers based on the total number of shares prior to a funding event or does the base share number include those allocated for investors as well?
How Should I Approach a VC I Don’t Know?
Every entrepreneur who has raised venture capital has heard it a thousand times—the best way to approach a venture capitalist is via a warm introduction.
The Art of Visual Thinking
In the venture capital business, many people think that a short pitch is thirty slides and a short business plan is fifty pages.
Imagine a Bigger Market and You’ll See a Bigger Market
Scientists in two studies at the University of Virginia discovered that softball players and golfers who had good days perceived balls and golf holes as larger than the players who had bad days.
Should I Pay My Lawyer A Success Fee For Venture Capital Intros?
Q: My lawyer is asking for a “success fee” for a referral to a potential investor in my business.
Strategic Entrepreneurism in the New Economy
Designing a startup for acquisition means software entrepreneurs must follow a new path to success.
I’ve Got Angels Who Want To Invest But Not Lead - Now What?
Q: I have several angels that say the want to invest but non of them wants to lead. In your experience: 1) Is this a “call option” strategy rather than a serious investment intent? 2) any thoughts on how to turn “co investors” into lead? or should I try to get a lead of this “co investors” pack?
A VC’s View on Why Startups Fail
An entrepreneur recently asked me why startups fail. Startups fail because they run out of money. You’re probably thinking, “Tell me something I don’t already know!” Read on and you’ll see that statement is deceptive in its simplicity
How Did We Get Our Idea For Our Startup?
Q: We just started looking for venture funding and I have a question. Why do VC’s ask us how our idea came about?
