Ed Sim has today’s great VC post titled Don’t forget to look at venture debt when raising a new round. Venture debt is a useful part of the capital structure of any VC-backed company and is suddenly trendy again. Ed writes eloquently about the advantages and pitfalls.
One question that we’ve gotten fairly frequently is whether or not an entrepreneur should take money from unaccredited investors. It’s tempting – you have friends and family that want to help you out, in many cases don’t want debt and want a piece of the action. Brad and I aren’t your lawyers. If you take […]
Q: My question relates to control premium with reference to VC investment in private companies. I would like to know whether when a VC invests in a private company does the investment includes any element of control premium. Also what are the factors based on which one can judge whether a deal in such case […]
Do Venture Investors Require Business Plans? Q: Do VCs and angel investors really require a complete business plan? I’ve read a great deal of conflicting advice about the value of a business plan with regard to funding. A: (Jason). Well, it sort of matters how you define “complete.” You could probably ask 10 VCs and […]
Q: Can the founders sell off their shares to the company and get paid from the investment which has come in the company at the valuation rate of the round? A: (Jason). Most likely, not. VCs are reluctant to allow founders to cash out, as the money going into the company is normally needed to […]
At AsktheVC, we’ve decided to periodically have guest bloggers take a shot at some of the questions we’ve received. Today’s guest post is by Will Price from Hummer Winblad. Will writes a popular blog which we enjoy. Hopefully you will also. Question: As the alternative asset classes continue to converge, there has been growing evidence […]