Category: Venture Capital

  • There is an interesting argument going on in the venture world about whether algorithms are better investors than people. The issues are well summarized in a recent Fortune article. The basic premise is whether it makes more financial sense (measured by fund IRR) to spend the time getting to know the team, cultivate the idea…

  • According to VentureBeat, Quirky has pissed away its $185M in venture funding. I liked the concept when it was announced a few years ago, sort of a VC firm for product inventors. But either these inventors never went online (I recommended it a number of times to people who approached me), or there really is…

  • I get asked this question all the time, so a post was in order… There are a few paths into the private equity investing world—all of them take quite a bit time to accomplish: Work your way up—be lucky enough to be a top student at a world-class MBA program, majoring in finance. This is…

  • Logo of the Internal Revenue Service (Photo credit: Wikipedia) If you want to be sure and have your VC's 'do the deal' you have carefully negotiated, make sure that you do not have any of these skeletons in your start up closet. I am no lawyer, but have paid lawyers plenty for advice on these…

  • Bicycle used by a restaurant deliveryman in NYC (IPhone picture, Amsterdam Avenue and 81st Street, May 8, 2008) (Photo credit: Wikipedia) According to VentureBeat, online food delivery is a competitive space, with numerous startups trying to edge out the competition. Foodpanda, based in Berlin, has raised $20 million to continue expanding its delivery service around the…

  • English: Merovingian coin valuing at a third of a golden sou. Found in the effigy of St-Eloi(c. 588 – 660), now in the Musée d'Art et d'Histoire de Toul. Nederlands (Photo credit: Wikipedia) One of the quandaries faced by entrepreneurs is how to value their start up. Dave Berkus details a popular method in his Blog,…

  • Right Whale (Photo credit: Joseph Wu Origami) In recent months,I have had two startups faced with the decision of deciding whether to take dumb money. No, not Uncle Frank's friends and family round check, although that one can be a problem as well, but mostly over bad feelings if the startup fails.  No, I mean…

  • Gnomes' three phase business plan (Photo credit: Wikipedia) Venture guys have three ways of reacting to a start-up pitch. What do each of them mean? Well, here's my take on it: Not Interested–I try and be honest with people up front. I will tell them it is not in my investing space, or that I…

  • Image via CrunchBase An extremely interesting post from Paul Graham, founder of Y Combinator and prolific startup investor on the Black Swan Farming concept of early stage investing.

  • A screenshot of Navit posted on http://wiki.navit-project.org/ (Photo credit: Wikipedia) According to Xconomy, Waze, the Israel-based social navigation and traffic service,  announced that it now has over 20 million users. That’s quite a milestone for any startup, but what makes this number so impressive is that the company also announced that it added half of…