Today’s guest poster is Frank Ronchetti, CFO of a local startup in Boulder. His “ask the vc” question became more of an observation and I thought that I would post in its entirety and then comment below. Frank, you have the floor. Are VCs incompetent or just inconsiderate? Not all venture capitalists mind you, just […]
One of the questions we get often is whether or not there is a central clearinghouse or hub (social network?) where VCs and entrepreneurs can connect. The idea is that VCs would find good deals and entrepreneurs would find funding. The answer is "no." Lately, on top of the questions, I’ve gotten several business plans […]
Q: Do venture capitalists require audited financials from the companies they’re considering for an investment? Will “reviewed” financials suffice? For that matter, how do acquirers think about audited financials? Will they help speed an acquisition or is it overkill? A: (From guest writer, our partner, Chris Wand). We have a requirement that all of the […]
Q: What is the the impact of the U.S. economy going into a (possible) recession on venture funding for new startups? A: (Jason). Somewhere my undergrad economics professors are shuddering as I type this answer. I won’t hold myself up as an professional economist or fortune teller, but there are some takeaways that have have […]
Q: I work at a startup in the valley, and I’m wondering what happens to unvested shares in the event of acquisition? I.e., should I expect that they are canceled, accelerated, or stay on the same vesting timeline? A: (Jason) The answer is “all of the above.” Any of these are potential outcomes in an […]
Q: Is it customary for an equity investor to have a veto right over future investments that are at parity or senior to that series? Do you see it often? Do you ever see it limited by the percentage ownership (e.g. if the series becomes a less than 10% shareholder, the veto right goes away)? […]
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