Venture Hacks

There’s an outstanding interview with Vinod Khosla on PBS’s web site. Here are some of the highlights.
On the real big opportunities:
“The real big opportunities are changing the infrastructure of society. We are talking about things like the $200 billion engines market for automobiles and trucks, things like lighting, billions of dollars spent on lighting. We [...]

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More wisdom from Randy Komisar’s The Monk and the Riddle (emphasis added):
Passion
“So why were they doing this? Why was it worth their time? I am always amazed that venture capitalists don’t ask that question. Perhaps at this point everyone assumes it’s obvious: to get rich.
“Passion and drive are not the same at all. Passion pulls [...]

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Tom Perkins from Kleiner Perkins slaps us with knowledge in this interview with Creative Capital. Here are some choice quotes from the beating:
On Timing
“It’s always a good time to be in venture capital.”
“You can’t look at the stock market and decide whether or not to invest in a startup.”
“The growth of technology has been [...]

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Suzanne Dingwall Williams is publishing M&A hacks on her excellent blog, Venture Law Lines. She call the series: ‘Selling the Startup’,
Selling the Startup: Can you sell your subscriber base?
“Recently, a new client received a very favourable takeover offer for her business, including its subscriber base. Problem: the privacy policy did not permit her to provide [...]

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Q: Should I sell my company or raise capital and go for it?
Sell if it dramatically changes the lives of the founders and the early team. Every dollar after your “fuck you money” is icing—get your financial independence first and make the icing at your next company. You can also use an earn-out at the [...]

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Q: Is the venture capital industry doomed?
No. Venture capital invested in the U.S. is increasing and VCs are a critical part of the startup ecosystem—I’m grateful they exist.
The rate of innovation is increasing and that innovation needs capital to get in customer’s hands. Capital invested in startups is going to increase, not decrease.
It’s wonderful that [...]

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Q: What’s the biggest mistake entrepreneurs make when they’re raising money?
Entrepreneurs focus on valuation when they should be focusing on controlling the company through board control and limited protective provisions.
Valuation is temporary, control is forever. For example, the valuation of your company is irrelevant if the board terminates you and you lose your unvested stock.
The [...]

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In Understanding Why Your VC Is Acting Crazy, Bill Burnham, a former Partner at Mobius Venture Capital and Softbank Capital Partners, describes why investors don’t always do the right thing for your business:
“One thing that many entrepreneurs don’t fully appreciate is just how much the financial and organizational dynamics within a VC fund can affect [...]

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