Chim Kan My Digital Treasure Trove
Vc
I got interested about Venture Capital about 7 years ago. I was reading my usual stories, news and other articles about entrepreneurship and I stumbled upon VC. It got me really fascinated about the fantastic stories of founders working with investors and how that can make or break a startup. Then, throughout the years, I've been talking and even working with them to understand how to work with them in the long term.
A small Article from Mark Davis from CFJ Gotham Ventures was explaining the needs to protect the investors money by adjusting the risk of a venture with the amount of equity needed to compensate the risk.
There is one exercise from the Harvard Busienss School case that shows the basics of how a startup is evaluated by a VC. (The name of the case is "Venture Capital Method...
Remember from our last post.
- Carlos told us that his company has 5,000,000 shares outstanding.
Leonardo wants 30% of return rate instead of 50% .
Many of you remember that Microsoft paid $ 240 million for 1.6 percent of Facebook . That was a huge amount of money for a company that is not generating THAT much money for the valuation.
Sometimes, a company invest in a startup for strategic reasons.
Anyway, ...
Background information:
Accel Partners is a private equity and venture capital firm. It invests in many industries such as Computing, Consumer Internet, Engergy, etc (there are 11 industries ).
Increadibly, Accel has invested in 197 companies (I did...
Remember from the last post:
"At the end, we see that Peter Thiel got XXXX % (I can't find the info, but this does not matter in our discussion of how a VC firm makes money rfom now) of Facebook with US$ 500,000 in June 2004,Accel Partners invested $ 12.7 million for 15 % (let's say that New York Times is right) and Greylock Partners invested $2...
In this third post, I'm going to explain why venture capital firms invest in stages and not in a one-time-big-investment and why Facebook is receiving rounds of investments.
Venture capitalists want to have some control in their investments. By staggering their investments in rounds, they can evaluate if the startup should receive more money or not. In this way, the VCs c...
In the last post, I promised that I was going to explain the four exiting eventsĀ:
- IPO
Initial public offering (IPO) is the act of issuing a company's shares to the public. There are other names for this such as public offering, flotation or publicly traded company.
When a company lists its shares on a public exchange, the money paid by investors ...