One man's opinion on Venture Capital Basics

The first time


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Why do entrepreneurs believe they will do everything perfectly with the first company? We generally don’t marry the first person we kiss, buy the first car we test drive, or buy the first house we view.

Value of Planning

Show you've been there before.


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In an earlier bit, I said, that if you're going to be asking for people to give you $5 mil, you're going to need to give them peace of mind that you'll do well with their money. And I stepped down from Partner, until associate/analyst.

Other reasons


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Time and time again, I’ve emphasized the monetary gain, IRR for investors.

The one thing wrong.

You can ask questions

But make sure you understand how, and who you're getting the financing from. It's easy, when you're a desperate company, to take any dollars that are waved your way. The hard part is going fundraising when you don't need the cash, and being able to discriminate among all the funds out there.

How to tell luck from skill

It's hard, actually, it's impossible given a single shot.

Growth of a PHB

Was talking with an old friend over dinner, and it was amusing to see him go from a techie with the 'gift', and grow into a PHB. Talk of budgets, management, projects, staffing. All the stuff that would have been poison to his system 5 years ago starting to creep into his thinking.

NDA's



They come up all the time, Non Disclosure Agreements. Most investors say "NO" to these if it comes up before they see an executive summary or business plan. For the rare people who can get an NDA before presenting a business plan, none of them are reading this blog.

Happiness

I focus a bit on happiness, because it is such a personal criteria, but one that is universally applied.
Commerce, at the very end of the day is:

Buy This …….. You’ll be happy.
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