fundraising

  • Dear VCs, there’s something you need to know about raising funds this year Crunch Network

    Dear VCs, there’s something you need to know about raising funds this year

    Times are changing. Startups and VCs are facing tougher times, layoffs, down rounds and eroding valuations. However, already a record amount of money has gone into U.S. venture funds this year. As an LP, am I seeing something others aren’t? Or am I just nuts? I believe the first quarter of 2016 was a classic example of what happens when there is uncertainty in the overall market. Read More

  • Bill Gurley doesn’t think these giant new funds are such a great idea

    Bill Gurley doesn’t think these giant new funds are such a great idea

    “It’s not just the size of the funds but the velocity” at which VCs are returning to their investors, known as limited partners (or LPs), says an astonished Bill Gurley of the venture firm Benchmark. “The Kauffman fund said that billion dollar funds sucked, then everybody went out and raised billion-dollar funds.” Gurley is referring to a 2012 Kauffman… Read More

  • There’s more to early-stage funding than VC money Crunch Network

    There’s more to early-stage funding than VC money

    Good companies will always get funded. If that’s your company, it’s important to make sure you have the resources to keep it alive long enough to get funded. Murmurs of a looming downturn in venture capital are pressuring more companies to preemptively begin fundraising, whether or not they have gained sufficient traction to justify their stated valuations. Read More

  • Textio, A Startup That Analyzes Text Performance, Raises $8M

    Textio, A Startup That Analyzes Text Performance, Raises $8M

    Textio CEO Kieran Snyder took a quantitative approach to how language worked in her linguistics studies. And when she and her co-founder Jensen Harris were leaving Microsoft to start a new company, it was only natural that it would be centered around language in some way. That’s how Textio, a startup that analyzes text for how well words and phrases perform in certain scenarios, was born. Read More

  • Separating The Sizzle From The Steak Crunch Network

    Separating The Sizzle From The Steak

    Seed rounds are all about the sizzle, the exciting promise of the future if things go as dreamed. Risk is high — but the reward, if it works, is far greater. Smart people with great ideas and strong skills can raise money based on their passion, vision and tenacity. But when it comes time to raise a Series A, it’s all about the steak — what you’ve accomplished. Read More

  • Bank Loans Are A Better Financing Option Than You Might Think Crunch Network

    Bank Loans Are A Better Financing Option Than You Might Think

    Today’s startup scene is all about raising VC money — as much as possible, as fast as possible. The market celebrates VC fund-raising, cheers unicorns and makes it seem like VC-backed startups are the holy grail of innovation. And so my fellow entrepreneurs were somewhat surprised to learn that when my VC-backed startup needed another cash injection, I resorted to the oldest trick… Read More

  • You Just Raised $10 Million. Now What? Crunch Network

    You Just Raised $10 Million. Now What?

    There are few feelings more intoxicating than raising millions of dollars from a well-known VC. The cash gives you power to exercise control by expanding your team, buttoning up your premises and further experimenting with both online and offline/brand campaigns. This rush of attention and power can often disorient founders. This is where expensive mistakes get made. Read More

  • Why Billion-Dollar Valuations Don’t Matter Crunch Network

    Why Billion-Dollar Valuations Don’t Matter

    In the last few years, there’s been a massive decoupling between private and public markets. A Goldman Sachs report shows that since December, five of the seven most recent IPOs for billion-dollar startups came in at valuations equal to or below their pre-IPO valuations. Read More

  • Navigating The New Waters Of Fundraising Crunch Network

    Navigating The New Waters Of Fundraising

    As a VC that has been in the industry for 15 years, I have watched many trends come and go. For the first few years of my career, my colleagues and I spent most of our time sourcing these trends and then incubating new innovation right here in Silicon Valley in the labs at IBM and AT&T. Today, however, the most successful venture capitalists all over the world are looking for innovation… Read More

  • Wasting Time With The Joneses Crunch Network

    Wasting Time With The Joneses

    Starting a company is like attempting to bend the world to your will. There are obstacles at every turn, and it’s never easy. Fundraising is one of those huge obstructions. Not only is the process of finding the true believers akin to finding the proverbial needle in the haystack, it’s also incredibly distracting. Read More

  • Buy/Hold/Sell In Venture Capital Crunch Network

    Buy/Hold/Sell In Venture Capital

    A common rule of thumb among early stage VCs is to reserve 2–3X dollars for every $1 initially invested in a startup. This is in order to maintain ownership levels in selected portfolio companies and to support them through good times and bad. Obviously, it’s not optimal to invest the same amount per company. Given the often binary returns within VC portfolios, there are… Read More

  • Running Out Of Money Isn’t A Milestone Crunch Network

    Running Out Of Money Isn’t A Milestone

    Nearly all startups use the same methodology to figure out when to raise their next round of capital. The founder projects the planned burn rate and estimates the day they will run out of cash. Then they subtract a margin for fundraising approximately four months from the date the company’s bank account will be empty, and declares the difference the fundraising-process start date. Read More

  • Fundraising Acceleration Is The New VC Investment Thesis

    Fundraising Acceleration Is The New VC Investment Thesis

    There was a quite a jolt on Friday from the news that Slack, a company whose eponymous enterprise communications platform was first publicly launched this year, raised $120 million in new venture funding from KPCB and Google Ventures. Even more eye-popping was the valuation: $1.12 billion. Although Slack pivoted from an earlier incarnation as a games company called Tiny Speck, such a growth… Read More

  • Bain Capital Ventures Raises $850 Million In Two New Funds

    Bain Capital Ventures Raises $850 Million In Two New Funds

    Bain Capital Ventures only needed two months to raise $850 million for its latest two funds. The firm began fundraising for its $650 million BCV 2014 investment vehicle and a $200 million coinvestment fund on April 2 and had wrapped up financing for the two funds by June 6, according to document shown to TechCrunch. Read More

  • With A New Generation Of Leaders Norwest Venture Partners Raises $1.2 Billion

    With A New Generation Of Leaders Norwest Venture Partners Raises $1.2 Billion

    Giving its new generation of leadership a deep capital pool to invest from, Norwest Venture Partners is expected to announce the close of a new $1.2 billion fund. The announcement of Norwest Venture Partners XII LP comes on the heels of a record year for the firm in 2013, when it saw the liquidation of 11 of its portfolio companies create roughly $10 billion in value. It also caps a remarkable… Read More

  • Winning AngelList

    Winning AngelList

    It’s a 500,000 person party, and you’re invited. It’s 24/7, no charge for entrance, and when you leave you could go home with a pile of cash instead of a creeping hangover. As Fred Wilson says, “If you’re working in tech and you’re trying to raise an angel round, you have to be on AngelList. You just have to be there.” Read More

  • Crowdtilt Launches Crowdhoster To Let Anyone Create, Customize And Host Their Own Crowdfunding Campaigns

    Crowdtilt Launches Crowdhoster To Let Anyone Create, Customize And Host Their Own Crowdfunding Campaigns

    Crowdtilt is today launching the first public version of Crowdhoster — its full-featured, open-source, customizable crowdfunding tool that will allow anyone to launch their own campaign without having to touch a line of code. Built using Crowdtilt’s API, Crowdhoster gives both individuals or businesses the ability to set up and own their own crowdfunding page. Read More

  • Group-Funding Platform Crowdtilt Opens To Non-Profits, Now Offers Tax-Deductible Donations, Receipts

    Group-Funding Platform Crowdtilt Opens To Non-Profits, Now Offers Tax-Deductible Donations, Receipts

    Since we first covered its launch back in February, Crowdtilt has been on a mission to become the easiest way for groups of people to collaborate around money, specifically fundraising, for any cause. Said in another way, Crowdtilt wants to become the go-to platform for the many types of group fundraising that don’t (or can’t) happen on crowdfunding platforms like Kickstarter. Want… Read More

  • Health, Yes! Startup Health Launches An AngelList For Healthtech Investors, Startups & Innovators

    Health, Yes! Startup Health Launches An AngelList For Healthtech Investors, Startups & Innovators

    If you don’t know about Startup Health and you’re a healthtech investor or entrepreneur (or at all interested in the space,) you need to rectify that. After all, as evidenced by the launch of another solid, differentiated health-focused startup accelerator last week, there is a lot of public, private and entrepreneurial attention shifting to the industry. Read More

  • [Excerpt] Fundraising: From $1,000 To $1,000,000

    [Excerpt] Fundraising: From $1,000 To $1,000,000

    Editor’s Note: The following is an excerpt from Onswipe CEO Jason L. Baptiste’s new book The Ultralight Startup: Launching a Business Without Clout or Capital. If you pay attention to the headlines about startups getting millions of dollars of funding from investors, venture capitalists, or partnerships, you might think the fund-raising process happens overnight. It all sounds so… Read More