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Posts Tagged ‘venture capital’

One Reason You Shouldn’t Worry About Getting Venture Capital

August 11, 2015 Comments off

Dileep Rao posted an interesting article entitled: Why 99.95% Of Entrepreneurs Should Stop Wasting Time Seeking Venture Capital. It was posted in Forbes Entrepreneur Blog.

Venture-Capital

It is an interesting analysis stating that odds are likely you will grow your business without Venture Capital.  It simply reinforces the notion that working on your business to build and please customers might do you better than chasing the odds of gaining traction with a VC, at least in the early stages of your company.  Still, the VC community, as Rao contends, is a formidable PR machine and the populace (i.e. press) seems to look their direction for validation and guidance.  Is this the right place to look?  If it is not, where should entrepreneurs (and policy makers) seek a “gold standard” to pursue?

Venture Capital: A Transition in Progress?

April 19, 2013 Comments off

vctreeIs the VC risk profile changing?  That thought came to mind after reading commentary by Kent Bernhard Jr.’s article: “Venture capital gets a serious smackdown in the Harvard Business Review”.  Both articles are great reads.  Bernhard comments on an article in the HBR that makes the case that the VC world is shrinking due to, among other things, not providing an adequate return to its investors.  The article contemplates perhaps the industry is destined to failure – or a change of business models?

I agree with Bernhard in that VC’s will stay and continue to fund in a sweet spot that’s needed in the market.  I also think that the incredible growth in Angel Funding and the upcoming potential for crowd funding plays right into a stronger return of the VC industry.  How could it not?  Now, the VC industry can look across a horizon of companies that either make it or not in development and proving a product to the market.  Thus, I believe the VC market will move up a risk-class and place less risky bets on more proven technologies.  Look out Angels on your Series B, C, or D, rounds.  VC’s will be looking to secure a return for their investors and secure their traditional compensation models.  Until they can’t, but that’s a long time from now.

Even though, the disruption of the financial markets have been tough on all of us, I believe this transition has created opportunities never imagined before – and that’s a good thing for everyone.  Look for even more investing models to emerge in the coming months and years.  Nature abhors a vacuum!