Uncategorized

What is Venture Capital?

For the foreseeable future the  capital markets are almost entirely closed while investors triage their existing investments and wait to see what happens with the proposed fiscal policy.    You will see alot about how the best companies were built in downturns, how private investors have alot of dry powder and are still actively investing. 

After ten years of rising US equities prices, many investors are selling (albeit off the highs) but with large capital gains. This sell-off gives investors a chance to rethink their allocation and potentially focus on private investments in earlier stage companies as a long-term hedge. Anecdotally, I met with hundreds investors over the past 24

In a downtown Austin incubator, on a warm Texas summer morning, five tech entrepreneurs swapped horror stories about venture capital firms. One of them proclaimed, ‘even the coffeeshop we’re meeting at has gotten venture capital.’ They were all searching for money sources, but none of them could fathom taking on an investment from a venture

When it comes to pitching investors, it’s vitally important to know how, what, and when, to pitch. Venture Capitalists, or VC’s, are some of the most savvy investors on the planet. This group of highly educated investors looks for top-tier companies to invest their money into, typically reaping a handsome reward at some point during

Starting in the 1990’s raising capital for tech startups became ubiquitous in the venture capital community. The early Internet ventures, some of which led to the Dot Com Bubble, raised money at a fever pitch. The high failure rate started a movement to a more accurate investment model by VC Firms. The earlier approach of

Intellectual property (IP) is the primary asset that investors will be agreeing to invest and should be managed as such. An IP capital strategy is simply a plan—consistent with the company’s capital strategy and product development plan—to acquire IP assets and leverage the most value from existing IP assets. Investors will require an extensive understanding

Following up with private investors (new shareholders, or members) is key to continued success. It’s also a great way to keep them from calling once a week to check on company progress.

According to Reg D rules, Issuers (companies raising capital) are responsible for verifying investor suitability. This process establishes whether they’re a qualified investor as an accredited investor, as described in Rule 501 of Reg D. We have used the following method for verifying accredited investors, since most of our staff started working with Reg D in 1998. It

Along with specific risk factors, disclosing ‘dilution’ is one of the most important sections of a PPM (what’s a PPM?). It’s one of the first sections investors review when reviewing a potential investment.