Startups

News, trends and advice for people starting companies or those who want to work for them.

Angels Should Mentor, Not Just Provide Cash

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Tech entrepreneurs need mentors. No one questions that. But few consider the idea that angel investors – in addition to providing money – can offer coaching and advice. According to Brian S. Cohen, chairman of New York Angels and co-author of What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funding for Your Billion Dollar Idea,” entrepreneurs should seek out angels who can provide tech and business expertise. Having been both an entrepreneur and… continue…

Men, Women Make Different Pitches to VCs

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Women and men have different styles when it comes to pitching venture capitalists on their businesses. Women rely on metrics, while men pitch broad visions, according to women VCs at MIT’s 16th Annual Venture Capital Conference. The Boston Business Journal reported that the topic was one of many at the Women in VC panel event, which also touched upon the challenges and solutions in the women-led VC space. While men tend to pitch a vision for the future, women have… continue…

Tech Startups Attract Non-Tech Company Buyers

Posted In Money, Startups
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Stepping outside the comfort zone is a mantra that non-tech companies are increasingly adopting, as they search for new ways to expand their operations or beat back the competition. Just ask corporate titans in the health, retail, financial services and agriculture industries that are stepping up their buyout activity of tech startups and going head-to-head with well-known IT companies like Google, Facebook and Yahoo, TechCrunch says. Health insurer UnitedHealth Group, for example, acquired health data analytics company Humedica in January.… continue…

7 Tips to Landing the Right Venture Deal

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In many ways, attracting venture capital isn’t that different from landing an angel round, says Matt Ehrlichman, a serial entrepreneur in Seattle whose latest venture is the home-improvement site Porch.com. It’s about your knowledge and experience in your business’s particular area, surrounding yourself with A-list co-founders and having a credible strategy for tackling a real market opportunity. However, the VC process is more formal. It involves much more scrutiny of your business and the market, many more meetings – and… continue…

Here’s How You Can Pitch VC Tim Draper

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Forget the 12 days of Christmas. If you’re an entrepreneur, Jan. 10, 2014, should be circled on your calendar. That’s the deadline to submit your business plan for an opportunity to pitch noted Silicon Valley venture capitalist Tim Draper, who’ll listen to and critique presentations from three entrepreneurs. Draper will sit down with these startup founders on Jan. 23, 2014, at his Draper University in San Mateo. While no one’s promising any funding, you’ll come away with valuable tips on how to improve… continue…

More Startups Help Workers Cash Out Before IPO

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Startup employees with an equity stake generally can’t cash out until the company goes public or is bought out. But a growing number of workers want the cash now – and more companies are offering them a way to get it. Aiming for a valuation of $5 billion, payment startup Square is raising money that would allow the company to buy employee shares, and companies including SpaceX, Evernote, SurveyMonkey and WordPress creator Automattic have been helping employees sell their stock… continue…

VCs Pump Cash Into Security Startups

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A significant rise in cybercrimes and corporate hacking means that cybersecurity equipment and software companies are enjoying a real upswing. Venture capital firms are taking note and pouring cash into startups in the sector, according to the Los Angeles Times. AlienVault of San Mateo, for instance, has raised $55 million in three rounds since January 2012. The company snagged seven top security executives from Hewlett-Packard, many of whom had worked at Fortify Software, a San Mateo security company HP bought… continue…

How Stock Options Work in VC-Backed Firms

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It’s good news when venture capital finds your company good enough to invest in. That’s when your boss will likely create an option pool for the employees she wants to keep. And since more tech firms are seeing venture capital investment, the likelihood of top talent receiving stock options is growing as well. The amount of venture money invested is rising, jumping 12 percent in the third quarter, and tech firms saw a big chunk of that money. Investment in… continue…

VC Associates: Your Path to the Partners

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If you’re hoping to get venture funding for your startup, one of your first contacts may be an associate, like Matthew Goldstein of Trinity Ventures in Menlo Park. While you’re probably thinking mostly about a firm’s partners, getting to know an associate like him could be a key to landing the funding you want. Goldstein is one of two associates who form Trinity’s team along with eight partners. The firm focuses on two kinds of technology investments: Its consumer practice… continue…

Here’s Your Chance to Pitch a Silicon Valley VC

Money
If you’re looking for feedback on the pitch for your startup, there’s no one better to get it from than a VC. So Dice News has arranged for noted Silicon Valley venture capitalist Tim Draper to listen to and critique presentations from three entrepreneurs. Draper will sit down with these startup founders on Jan. 23, 2014, at his Draper University in San Mateo. While no one’s promising any funding, you’ll come away with valuable tips on how to improve your… continue…