Category: Venture Capital

  • I have had a number of requests to expand my shortest Blog ever–the one the said that the biggest mistake entrepreneurs make is a failure to monetize their business model.  So here goes…and thanks for asking. Let’s say you have this really great idea like a search engine to compete with Google.  There are sure…

  • Psst…want to make a fast 10-20%(or more) on your investments by investing in start ups?  Don’t have the millions it takes to become an LP (that’s limited partner) in a venture fund, or want to wait seven years for a payoff? Well, Prosper may be your ticket.  You (and many other borrowers) can bid on…

  • Can your supply chain be affected by weather? Any shipper that has had to pay late fees to a retailer because they missed a delivery window may want to check out the newest way to hedge weather-caused transportation delays. Let’s say you have a critical air delivery due to ship to a Wal-Mart distribution center,…

  • Most of us have heard the fable of the chicken and pig discussing being participants in breakfast.  The chicken offers to contribute the eggs, but the pig demurs, realizing that by donating the ham or bacon, he becomes fully committed via the slaughterhouse. Investors can also come in these two levels of commitment.  The "chicken…

  • SaaS based software companies have unique funding requirements.  Although many sign long term (read:3 to 5 year) deals with customers, they generally bill monthly for their services.  Unlike perpetual license software providers who collect most of their license fees up front, SaaS companies must wait years to get the equivalent of a perpetual license payment. …

  • I have been having some animated discussions lately with some of my portfolio companies about their organizational structure, or lack thereof. The net result was Dave formalizing some overall suggestions on how to think about structuring an organization in a small, technology focused company: Customer-focused–An organization needs to be, first and foremost, customer focused.  That…

  • It’s a two-way street. You want the best senior executives for your start-up and the best senior executives want to make the right decision about which company to join.  How do you make it all come together for both parties? Here are three ways to ensure that everyone is on the right page before final…

  • I frequently lecture my portfolio companies (and other entrepreneurs who ask) to always be planning for exit. Why should you be planning for exit when you are trying to raise money to start your company? In simple terms, it is critical to structure your operations, customers, products and sales to make them friendly to your…

  • By now, you have probably joined Linkedin, Plaxo, Facebook or the myriad of other business networking sites that have emerged in recent years.  These are generally useful tools to keep track of friends and business associates.  The best part is that their information is updates (by them) when they changes jobs, etc.  But now there…

  • They do not figure out how to monetize their business model. I repeat. The biggest mistake most entrepreneurs make is not figuring out how to monetize their business model. My shortest post ever. And I don’t think I need to explain it in a lot of detail. If not, let me know and I will…