As an entrepreneur, you know that venture capitalists will get seats on the board of directors when they invest. What you may not know, however, is that the VCs will often also have board observers from their firm. What is the difference between a director and an observer? What are the benefits and drawbacks of...
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 your fundraising strategy? Angels Invest in Earlier Stage Companies In 2009,...
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 Win Later In the current environment, raising money is tough, not just for...
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 2008, venture capitalists...