Capital Raising Tips
A Misconception About Venture Capitalists
Venture capitalists are not investment bankers! Unlike a Wall Street trader, a typical angel investor, FO or VC interacts with founders multiple times. Despite that it is not their job to go raise more money for your startup. Their job is to write a cheque for some, or all of your round. If they only […]
How To Determine The Valuation Of Your Startup
How do I value my startup? 🤔 Without years of financial data to refer to, founders and investors have to rely on creative and subjective factors. Stone & Chalk have done a great job documenting these factors in their Guide For Startups Raising Capital. Beyond these factors, SMEs have developed methodologies that provide a mental […]
Book List on Angel Investing
I just came across Cheryl Mack‘s book list on angel investing and thought it’d make for a great share. Here we go: 1 – Secrets of Sand Hill Road by Scott Kupor On how VCs decide where and how much to invest, and how entrepreneurs can get the best possible deal. Written for founders but […]
Stop Chasing VCs, Go After Angel Investors Instead
Most first-time founders automatically think that VCs are where it’s at. The crucial thing about venture, though, is the investment criteria. VCs are only interested in the tiniest minority of ideas. In some ways, it doesn’t actually matter how likely you are to succeed. If your startup doesn’t tick the “power law” box (the law […]
Signs of An Investor’s Market
We are now in an Investor’s Market. This is what has changed since last year: 1) There’s been a massive correction in the public markets which is now filtering to private markets Cases in point: Netflix lost $54B in market cap, an investor slashed the value of their shares in Canva by 33%, tech giants […]
The Best VC Firms in 2022
There are over a thousand VC firms managing about $400 billion in assets under management (AUM). This has doubled in the past decade. In any given year, 200+ funds raise their capital, and the average fund size raise is now at $200+ million. The largest VC fund raised was Sequoia Capital Growth at $8 billion. […]
How To Navigate A Startup In A Bear Market
As the market nosedives, Justin Kahl and David George go beyond the general advice of conserving cash, extending runway, shifting focus from growth to efficiency, and provide a diagnostic framework for startups to navigate market uncertainty and downturns. STEP ONE: Reevaluate your valuation Your valuation multiple is the ratio of your valuation to revenue. You […]
A Glimpse Inside The Business of Venture Capital
I just got my copy of The Business of Venture Capital by Mahendra R. as part of Wiley Finance Series. Since its publication, it has been hailed as the definitive, most comprehensive book on the subject of raising a fund, structuring investments, portfolio management and exits. Here’s a sneak-peak into the kind of ideas the […]
How To Write An Email To An Investor
The Dos and Don’ts of writing your first email to an investor: Dos: 1. Make it short (less than 60 seconds to read) 2. Describe the problem you’re solving 3. Describe your solution 4. Have you launched? 5. Have you got a technical co-founder, industry expertise? 6. Describe what makes your solution different (do you […]
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