Venture Hacks

Advice and introductions for entrepreneurs.

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Entries Tagged as 'Future Financings'

How much money should we raise?

April 14th, 2008 · 1 Comment

Summary: Raise as much money as possible. With these caveats: (1) maintain control at any cost, (2) monitor your liquidation preference, and (3) act like you don’t have a lot of money. Also understand that if you do raise a lot of money, you will have to (1) “go big or go home” and (2) [...]

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Learn more about: Case Studies · Execution · Future Financings · Hacks · Liquidation Preference · Money · Quotes · Resources · Valuation

How do I find a lead investor? Part 2.

January 24th, 2008 · No Comments

Summary: Here are 3 microhacks for finding a lead investor: (1) If followers have good reasons to not lead, ask them for introductions to potential leads. (2) If you’re early stage, find seed investors who invest in people and high risk startups. (3) If every prospective investor says “we don’t know the market,” find investors [...]

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Learn more about: Angels · Diligence · Future Financings · Hacks · Introductions · Lead Investors · Negotiation · No

Hack: Understand why investors want protective provisions

August 2nd, 2007 · 6 Comments

“AOL almost sold to Compuserve in 1991 for $60M. The VCs wanted to sell. [Steve] Case won by 1 vote. 10 years later, [AOL was] worth $100 billion.”
– Mark Pincus
Summary: Protective provisions let preferred shareholders veto certain actions, such as selling the company or raising capital. They protect the preferred, who are minority shareholders, from [...]

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Learn more about: Board of Directors · Future Financings · Hacks · M&A · Protective Provisions