Question: We’re a profitable bootstrap NOT looking for institutional funding. Periodically we get inquiries from VC associates. Is there any reason we should or shouldn’t talk to them? Assuming they have plenty of deal flow, and we haven’t been introduced, why would they even bother? Our Take: If you are profitable bootstrap company and people […]
Question: I was deVCeed. My VC just one day said that he does not want to do it anymore and wants me to pay back investment that they made. That’s it? Our Take: Ouch. Something here isn’t right; start up investments are not like banks. We can’t invest in you one day, get tired and […]
Question: How widely accepted are the PEIGG valuation guidelines? I saw some stats from the Dartmouth/Tuck School survey that indicate increasing acceptance, but just how willing are the LP’s to accept write-ups? Our Take: This is a great question and one that, frankly, we wish we had a better answer for. We invite comments to […]
Question: When do VCs prefer to invest in companies? After they have completed their beta? After they have a certain amount of customers? Our Take: There isn’t a cut and dry answer to this question. The answer really depends on what the investment thesis is for the venture firm you are working with and the […]
Question: With the private equity and hedge funds raising record funds where does that leave venture capital? What are your thoughts on the future of the industry? Our Take: Right now, we’d say that PE and Hedge Funds raising money is not having a material effect on the VC industry. There certainly has been a […]
Question: If you found out that a startup who approached you was soliciting funding from other sources, would you be less likely to invest in the opportunity? Would you encourage or discourage new startups to negotiate a better deal by looking for more than one VC? Our Take: As much as we’d like all our […]
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