Apparently, Early Stage Investors Aren’t Endangered – Quite The Contrary!

  • What’s Really Going on in the VC Industry?  What Does it Mean for Startups? (Mark Suster) – I put this post first for a reason.  In Mark’s usual style, it kicks ass.  He covers so many valid, timely points that I’d rather just link to it than have written about them on my own.
  • Angel Investor Ron Conway:  Every Entrepreneur Should Get Funded (Anthony Ha – VentureBeat) – Ron believes there still aren’t enough angels out there.  On the other hand, Mike Arrington was quoted as saying that angels are training “an entire generation of entrepreneurs who are building dipsh*$ companies” that sell to Google for $25M.  This division shows that not everyone agrees with the direction the market is taking.  I can see one of the points that Arrington was making and it is going to be the basis for my next post on the “fat/lean” start-up and how all the talk on that subject hasn’t necessarily filtered down to the entrepreneurs in the correct way.
  • It’s Still Expensive to Build a Great Product (Redfin) – I like this article because it helps give some context to the capital efficiencies everyone keeps talking about.  I’ve heard the saying lately (which I think can be attributed either to Brad Feld or Fred Wilson) that it’s cheaper to start a company today (I’d re-phrase this piece to limit that to Web 2.0-type tech companies) but it costs the same amount to grow it.  This article helps flush out that issue.
  • Moneyball for Startups:  Invest Before Product/Market Fit, Double-Down After (Dave McClure) – Dave hits many issues using his lively fonts, colors and language.  What I like about Dave’s posts is that you know where he stands, which you cannot say about most people.  Part of his post is devoted to his assertion that the traditional VC model is dead and that the super-seed/super-angel model will prevail.  I hate saying anything is dead, because there are no certainties in life, just cycles in my experience but Dave has some valid points.
  • The Buzz on Angel and Seed Investing Continues (Brad Feld).
  • Thoughts on the Seed Fund Phenomenon (Fred Wilson).
  • The Rush to Early Stage Seed . . . (John Boyd).
  • Understanding a VC’s Seed Funding Policy is Crucial (Mark Suster) – this is an important article to read for those of you debating between super-angel funds and raising full-on VC funding but at the seed stage.  If a VC fund puts a small seed investment into your company in order to preserve a “toe-hold” for down the line, understand that if that fund opts not to do a follow-on investment with you it could be the kiss-of-death.  Others will wonder what the VC fund (being a current investor) knows about the company that others don’t and why they opted not to invest.  They might have opted out for the most mundane of reasons, but the crowd will assume the worst and it could hurt your fundraising.  Of course, the same might be said of super-angel funds unless people begin to believe that some of those funds just don’t have the bandwidth to follow-on in all the deals they would like to.
  • Why Micro-VCs are so Damn Friendly (Gregory Huang – Xconomy).
  • Y Combinator’s Paul Graham:  Say Goodbye to Traditional Venture Rounds (Anthony Ha – VentureBeat) – again, I don’t believe in the “this is dead” assertion, but I do see many changes in the works.

Page 2 of 3 | Previous page | Next page