The average venture capital firm screens 350 companies and makes only four investments in any given year. A recent study from the Journal of Financial Economics surveyed 885 institutional venture capitalists and 681 firms on how they make their investment decisions. The results showed that when selecting investments, VCs focus more on the management...
Many people view venture capital (VC) financing as an avenue to turn an idea into a business. In reality, your idea will have already turned into a business and hit several benchmarks before you can raise venture capital.
You need to develop a business model to sell your...
Back in the olden days (1978), a theater term was applied to finance, and angel investing was born. As far as I can tell, this is the one and only time that theater and finance have merged, at least outside of one semester of college when I took an acting class…
Business owners are often on the lookout for investors. From small and agile startups to more mature cash cows, most businesses can take advantage of new money from smart investors.
The most popular sources of investment funds are from private equity and venture capital firms. Let’s take a look at the two fund types and how…
As an entrepreneur, you may be familiar with limited liability companies (LLCs). They allow you to protect your personal assets from potential legal liabilities in your business. Once you try to raise venture capital for your business, you may hear the term limited partnership (LP).
Limited partnerships are often used by private equity and venture capital…
Finance is almost as good as the government at coming up with needlessly hard to understand words for relatively easy to understand concepts. As a subset of finance, venture capital (VC) is no stranger to this phenomenon.
We recently published an article defining terms like option pool and liquidity preference. And pre-money and post-money valuation are the black…