Venture Deals [review]

I recently finished Brad Feld’s and Jason Mendelson’s fantastic book on venture capital deals. The book is based on series of blog posts from the blog at Foundry Group. It takes much of what has been written there over the years and pulls it all together in to an easy to comprehend format that will most likely stay within easy reach for some time to come. The book starts off explaining the basic parts of the VC deal process, but really hits it’s stride when Brad and Jason breaks down the various aspects of each part of the deal in to what the investor expects and what the entrepreneur expects. Having both sides of the deal presented helps put in to perspective what is important to who and why. As with most deals, what is important to you is very...

Angels and Entrepreneurs

I was recently asked to take part in a round robin interview with Rand Fishkin (@randfish) of SEOMOZ and Nova Spivak (@novaspivak) of NovaSpivak.Com and hosted by Sheldon Campbell (@docsheldon). The three part interview revolved around the the problems and pitfalls that an entrepreneur can meet while searching for investment capital from venture capitalists or angel investors. I enjoyed to interview and learned quite a lot from the other participants since we come from different points with Rand being a successful fund raiser, Nova being an Angel investor and me being in the early stages of investigating raising investment capital. I just wanted to take a minute to thank Doc for inviting me to participate and spread the word here. You can find the separate parts...

the difference between pre-money and post-money valuation

Recently I was working with a few people on a new project we are collaborating on (all hush hush right now) and one of the topics was determining how to place a valuation on the company. While it’s not terribly important at this point, it can become an issue later in the life of the company if we don’t address these issues early. In passing I mentioned pre and post money valuation and got a virtual blank stare over skype. It’s one of those terms that is tossed around a lot in the VC/angel world and a lot of people nod and pretend to know what that means. Fortunately, pre and post money valuation isn’t a terribly complex issue grasp. In a nutshell, pre-money valutation is better for the entrepreneur and post-money valuation is better for...

eric schmidt starts spreadin’ it around – again

We beat up on Eric Schmidt on the podcast quite a bit mostly because he makes it easy by speaking what is on his mind without much in the way of a filter. But he really is a brilliant man in his own right and he tends to do things in a way that hasn’t been tried before. That’s the case with his new VC firm. Google’s former CEO and current executive chairman has reached in to his back pocket for a little petty cash and funded a new venture capital firm called Innovation Endeavors about a year ago. Based in Palo Alto this VC firm is being headed up by 33 year old technologist Dror Berman. The interesting bit is that Berman has no formal investment or finance background and this is his first startup, something unusual for someone running a VC firm....