With venture capital difficult to obtain, more startups are looking at venture debt to finance either growth or equipment purchases. Venture debt involves a specialized financial institution extending a loan to a startup. Traditional commercial lenders are hesitant ...
Category Archives: Venture Capital
Why Secondary Market For Private Company Stock Is Strong
In another sign that the secondary market for private company stock is going strong, Elevation Partners will soon complete its third large transaction in the past year. This time, Elevation will buy $100 million of Pandora stock. In June 2010, Elevation purchased five million shares of Facebook common stock for $120 ...
Two Differences In How Angel Investors And Venture Capitalists Invest
With the venture capital industry shrinking, many entrepreneurs have started looking to angel investors for funding. There are two main differences in the funding practices of venture capitalists and angels: (1) Stage of investment, and (2) Size of investment. How do these differences affect ...
Angel Investors: Give Them Common or Preferred Stock?
Congratulations. You have convinced several angel investors to fund your startup. Do the angels get common stock or preferred stock? What's the difference between common and preferred stock? Why does it matter? This deal term has implications for future funding rounds and your relationship ...
Three Reasons For Weak Venture Capital Returns, 2000 to 2009
Palo Alto Corporate Attorney Douglas Y. Park discusses three reasons for lower venture capital returns: (1) Weak IPO market, (2) VCs making fewer early stage investments, (3) Fewer VCs have operational experience.
What Venture Capitalists See For 2010: IPOs, M&A, But Not Cleantech
What do venture capitalists like in 2010? Not cleantech. But they are optimistic about more big IPOs and mergers and acquisitions coming through. An article in the New York Times discusses the technology sectors that VCs are bullish on. VCs are excited about ...
Which Way Should Venture Capital Go?
The venture capital industry is downsizing toward smaller and fewer funds. What should the remaining VCs do? What should new VCs do? The answers will have a large influence on entrepreneurs, innovation, and wealth creation. Venture Capitalists Who Raise Money Now Will ...
The Downsizing Of Venture Capital
The venture capital bubble has burst. The New York Times reports that the venture capital industry is shrinking on two fronts: the number of venture firms, and the total amount of investment in venture funds. As many as half of all venture firms could shut down because of poor financial performance. In ...