Venture capitalism has a disproportionate impact on the economy. It helps to ensure that technological innovation enriches the few and sustains jobless economic growth. Industrial policy in the hands of the government ideally creates wealth and spreads it around. Venture capitalists pick a handful of winners as part of a process of concentrating wealth in fewer and fewer hands.
Know what your cost of customer acquisition is and show investors how you can successfully grow you revenue regardless of raising capital. And don't use the term "conservatively" when estimating a value that is obviously and grossly overblown.
Investors want to know that you will prioritize a client meeting over an investor meeting, or you will prioritize a partner/reseller meeting over a press opportunity. Don't chase the shiny objects, show focus and investors will believe in your value.
Ballot Measure to Divide CA Into 6 Mini-States Is Based on Idea That Smaller Government Is Always Better Government -- Not So
The theory behind Draper's ballot measure is that subdividing California creates smaller state governments -- and that the smaller and more local the state governments, the more politically accountable and the better managed they will be.
In our experience, those who view their invention as a business opportunity (and keep their emotional attachment to their idea out of the equation) are the most successful.
One reason the finance business is always busy is that it functions much like the arms dealer. You don't need to figure out precisely who's going to win or lose. Some fail, some succeed. If they succeed, they wind up building an army that's accomplishing something.
According to the Kickstarter's data, there was $274 billion collected last year (+238 percent from 2011). In comparison, VC's invested $26.5 billion in 2012 (-10 percent from 2011). Do you see the difference?
Sometimes the success of a great film relies on the best pairing of idea and director. The same goes for business. It's part of the role of the studio executive and the VC to ensure that the right leader is in place to execute the right idea smoothly, on budget, and on time.
Infusionsoft, an eight-year-old software company founded by Clate Mask (CEO) and his two brothers, Scott and Eric Martineau, has just been given $54M in expansion funding from the investment firm Goldman Sachs.
The reality is, though, that incremental business model improvements in big markets can result in highly successful ventures, create many jobs, and solve problems that customers were previously experiencing.
After the 2008 financial crisis, capital is too restrictive to be loaned by banks. When I founded my company, I didn't even waste time looking into this fundraising option. It's as improbable as finding the Loch Ness Monster.