Posts Tagged 'VCs'

Trends in Seed Stage Funding for Entrepreneurs

December 22 2011 No Commented

I’ve recently taken a look at seed stage funding by venture capitalists (VCs) and angel investors over the past five years.  For VCs, I chose to look at all seed stage VC deals (from MoneyTree©) as well as those in five of the most active regions in the country.  Note that I merged the two […]

How do Lifestyle Businesses Differ from Growth Companies?

June 17 2011 No Commented

One way to categorize startups is as lifestyle businesses versus growth businesses.  Don’t jump to the wrong conclusion.  Both are great for the US economy! Lifestyle Companies (build to keep)  Lifestyle companies are usually owned and operated by an entrepreneur and his or her family, or a small group of partners.  They tend to grow […]

The Funding Gap

January 20 2011 2 Commented

Startup entrepreneurs need to be aware of The Funding Gap between angel investors and venture capitalists.  It is quite well-known that startup entrepreneurs first use their own capital and then seek funds from friends and family in the process of productizing their innovation.  Only when customers have been identified who have at least beta tested […]

Is Venture Capital Available in Montana?

November 23 2010 No Commented

The following article appeared in the July 2010 issue of the Flathead Business Journal, but is no longer available online. Last month we described VC firms as limited partnerships in which general partners raise funds from large passive limited partners, such as pension funds, foundation endowments and big corporate investors, and then invest those funds […]

What is Venture Capital?

November 23 2010 2 Commented

The following article appeared in the June 2010 issue of the Flathead Business Journal, but is no longer available online. While wealthy businesspersons have been supporting start-up ventures for hundreds of years, by investing time and money as angel investors, the Venture Capital (VC) industry emerged as investors in new businesses after World War II.  […]

The Funding Gap

November 16 2010 No Commented

Everyone who understands the capital food chain for entrepreneurs is aware of the huge capital gap that has appeared in the past decade.  Very little capital is available in the US for rounds of $1 million to $5 million.  Angel investors have for decades funded deals of $200K to $1 million.  Until the late ‘90s, VCs […]

Dorsey and Whitney: Sources of Capital for Entrepreneurs

November 10 2010 No Commented

I chuckle when I read Silicon Valley pundits attempt to generalize on the characteristics of US entrepreneurs and their source of capital based of information gleaned from surveys of Silicon Valley folks.  Such is the case with the Dorsey and Whitney (D&W) survey, “What Really Matters to Startup Entrepreneurs” released last month. Let’s just look […]

Are Angels Really Stifling Innovation?

November 3 2010 2 Commented

Last week, Tom Foremski  suggested that the angel strategy of commercializing innovations and then rather quickly selling the startups was stifling innovation.  In doing so, Tom referenced Max Levchin’s recent blog in which he suggested that while this strategy makes money for the angels, it tends to discourage building breakthrough companies.  The implication is that […]

What Are These Super Angels?

October 5 2010 No Commented

What’s all the hubbub about Super Angels?  Well, some high profile entrepreneurs-turned-investors, mostly in Silicon Valley, have been doing some rapid-fire investing in startup entrepreneurs.  In the process, they began to accumulate some nice press (see our recent post) and lots of attention.  And, wanting to do more investing in startup ventures, many of these […]

Montana Venture Capitalists

September 28 2010 No Commented

As many of you know, high-growth entrepreneurs seek capital from three generally non-competing sources:  Friend & Family, Angel Investors and Venture Capitalists.  F&F often invest up to $100K in idea-stage companies (no product, no customers).  Angel investors provide funding in amounts ranging from $100K to $1 million to companies with at least a prototype product […]