Venture Capital

Watch as a Silicon Valley Startup Pitches a VC

tagMap Pitch
If your dream is to start a company and make a fortune by taking it public, you’ve got to be thinking about how to pitch investors. After all, without money a fantastic idea, great market potential and talented team won’t amount to very much. The challenge is to grab the attention of high-powered VCs. They’re inundated with proposals that come at them through everything from email to phone calls to in-person pitches at live events. To break through the clutter,… continue…

Follow Investors’ Dollars to Job Opportunities

Posted In Looking in Tech
Nest Thermostat
“Follow the money” is a phrase many still associate with corruption scandals. But the same principle works for tech investments. If you want to know what’s really happening — and why — the money trail will lead you to answers. The recent Consumer Electronics Show, for example, spotlighted big trends that are getting big funding and will create potentially big hiring. Analyst Tim Bajarin, who has attended the last 30 of these shows, says the key trends in 2014 are… continue…

Why Starting a Company is Like Falling off a Cliff

Warning Unprotected Edge
Does the call of entrepreneurship make your current job seem boring? Are you looking for adventure? Do you seek IPO riches? Are you looking for an escape? Don’t be too quick to make the leap, warns Robert P. Strauss, professor of economics and public policy at Carnegie Mellon University. He says today’s economy isn’t friendly to typical small businesses and the employment situation is worse. “Starting a business is a young person’s game,” Strauss believes. Mid-career workers who quit their… continue…

How Women Can Change the Tech Investment Landscape

Woman Investor
It’s inevitable that sometimes women tech entrepreneurs will face gender bias when they’re out pitching investors. Still, it pays to be persistent. Because, like their male counterparts, women can still gain contacts and feedback that will be helpful in the future, even when they don’t get the answer they want. While the blogosphere is filled with posts about how women can’t secure funding, the truth is women simply aren’t pitching enough, says Natalia Oberti Noguera, founder and CEO of the Pipeline… continue…

Startup Hiring Expected to Grow, Funding Crunch Overblown

Posted In Business, Startups
We Want You
Despite expectations that a tsunami-like wave of angel funded startups would be stranded last year due to a Series A funding crunch, that massive crunch never materialized, says Adley Bowden, senior director of analysis for PitchBook.  “There was a sky is falling attitude, but it did not happen,” Bowden says. startupAnd in 2014, there is talk that this funding crunch will migrate to companies who are seeking their Series B funding. But Bowden is discounting those fears too. “VCs have… continue…

For Funding, VCs May Not Be Your Best Choice

Refuse
According to one of their own, the problem with venture capitalists is their “never-ending search for the next-big thing.” In baseball terms, instead of going for singles and doubles, many VCs seek nothing but home runs. Sadly, what VCs identify as the next big thing rarely is. They often reflect either investments they have already made and want to pump up, or areas they don’t normally invest in but want to see overfunded to diminish a competing firms’ assets. Machiavellian… continue…

VC Funding Barrier Eases for Women

Woman Peeking Over the Fence
Although women stand a greater chance of getting venture funding than they did a decade ago, they’re by no means on equal footing with men when it comes to financing their startups, according to researchers and venture capitalists. The percentage of U.S. venture backing for startups with at least one woman founder reached 13 percent in 2013, dramatically higher than 2004’s 4 percent. Those numbers come from the private equity and venture capital researcher PitchBook. While the number of women… continue…

Angels Should Mentor, Not Just Provide Cash

Meeting
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

His & Her Post-Its
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…

7 Tips to Landing the Right Venture Deal

Handshake
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…