Entrepreneurship & Fundraising
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"Imagination is more important than knowledge. For knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there ever will be to know and understand." - Albert Einstein
If you wanted to know what I’ve been thinking about after Customer Development, you can see and hear it in the talk I gave at the conference. Watch the expanded version of “Why Accountants Don’t Run Startups below.
- The first story, Shifts in Entrepreneurship starts at 4:20
- Not All Startups Are Equal starts at 7:30
- What VC’s Don’t Tell You starts at 12:00
- Business Plans Versus Business Models at 14:08
- Startups Search Companies Execute at 17:05
- Leadership Versus Management at 24:50
- Durant Versus Sloan at 30:13
- E-School Versus B-School at 33:41
There’s already lots of great content on the web about raising capital and understanding deal terms. My favorite is the content on Venture Hacks (a must read, if you’re raising capital). But, I figured it wouldn’t hurt to share some of the “lessons learned” from my own experiences. Some of these you’ve probably heard before, but one or two will likely be new to you
At the meeting we heard from one VC, Blumberg Capital, who specializes in seed round investments of internet companies.
The partner of the firm who spoke, Bruce Tarragin, said that they were closing a deal in Tel Aviv now, and had already closed another deal earlier this quarter.
The Capital Market Bulls Return
There had been several months, since last October, with virtually no dealflow that was actually leading to investment. Now, there seems to be a reawakening of the capital markets. The negative sentiment of the market has been replaced with a feeling that we have already reached bottom, and now there are good ideas out there that are worthy of investment.
Continue here Israel Economy for Start Ups – Signs of Improvement
Despite the exit drought, more Israeli start ups have reported to recieve venture rounds from the last 60 days. You’ll notice the common thread: lots of private investor involvement and almost always participation of the previous investors as well.
Read more: >>>
Looking for funding for your big idea? Follow our 10-point guide to landing the right investors.
"The entrepreneur is the Pied Piper of a company," says Chip Hazard, general partner at Boston-based Flybridge Capital Partners. "We want an articulate, passionate CEO who can excite others - employees, customers, business partners."
Flybridge joined the syndicate that backed Goby Technologies, a Boston-based search startup that provides comprehensive leisure and travel information in a single site - first with a seed round to build a prototype, then with a multimillion-dollar Series A round to fund longer-term operations. >>>
"It's an opportunity for an entrepreneur to get a little bit of liquidity and ... for a venture capitalist to either show that these companies have some real value to them or to sell some."
Venture capitalists invest in fledgling companies and hope to make a return several times that investment by taking the company public or selling it to a larger competitor.
There are 85 companies that have had to pull their initial public offerings because of inhospitable markets, Draper said. He said 200 start-up companies of the "highest quality" are ready to participate in the XChange.
The journey to find these ideas has taken me from inventors’ basements, to obscure research labs, to, in one case, a smoky Milwaukee bowling alley renowned for its fried Twinkies. With a lot of hard work and a little luck that journey ends on the floor of a stock exchange, witnessing a company you helped build go public. It’s a helluva ride.
1. Your idea can suck. Just get started.
2. You can be in the middle of nowhere and still build a great business.
3. Not having cash breeds good behavior. It’s helpful to have constraints.
4. In defense of the modest outcome: You don’t HAVE to build the next Facebook. Modest liquidity events are highly under-rated.
5. “I’m a complete introvert. It’s not that I don’t like people, I just don’t like being around them a whole lot.”
6. Something’ changed here. You don’t have to spend a lot of money to get your message out there.
7. The real issue with VC is not the cost of capital (which is high), but how hard it is to actually raise it.
8. You have to go through the 12 flaming hoops of venture capital.
9. All the time you should’ve been spending solving your customer’s problem, you use to start to solve the VC’s problem.
10. Write a blog, not a business plan.
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