Fundraising

Most founders who are raising capital look first to traditional equity VCs. But should they? Or should they look to one of the new wave of revenue-based investors?

Should you raise equity venture capital or revenue-based investing VC?

Changes at YC, trends in the startup universe and a breakdown of the accelerator’s latest batch.

YC is doubling down on these investment theses in its most recent batch

You’re working on launching a new VC fund; congratulations! I’ve been a traditional equity VC for 8 years, and I’m now researching revenue-vased investing and other new approaches to VC.…

Should your new VC fund use revenue-based investing?

Does the traditional VC financing model make sense for all companies? Absolutely not. VC Josh Kopelman makes the analogy of jet fuel vs. motorcycle fuel. VCs sell jet fuel which…

Revenue-based investing: A new option for founders who care about control

Last year Broadcom, a chipmaker, raised eyebrows when it acquired CA Technologies, an enterprise software company with a broad portfolio of products, including a sizable mainframe software tools business. It…

Why chipmaker Broadcom is spending big bucks for aging enterprise software companies

Tumblr has been a millstone around the neck of its owners, first Yahoo and later Oath and Verizon Media, pretty much since it was acquired in 2013. They never found…

Automattic’s bargain-bin Tumblr deal plugs right into the WordPress business model

Last week when Salesforce announced it was buying ClickSoftware for $1.35 billion you might not have realized it, but the law firm Shearman & Sterling was advising Salesforce throughout the…

How lawyers help bring your acquisition deal to fruition
Startups

How to fundraise in August

7:45 am PDT • August 7, 2019

August is often considered the black hole of venture capital fundraising. Everyone is on vacation (well, everyone who’s not a founder anyway), while half of Silicon Valley is slogging down…

How to fundraise in August

AWS is already the clear market leader in the cloud infrastructure market, but it’s never been an organization that rests on its past successes. Whether it’s a flurry of new…

Why AWS gains big storage efficiencies with E8 acquisition

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The Exit: The acquisition charting Salesforce’s future

Before Tableau was the $15.7 billion key to Salesforce’s problems, it was a couple of founders arguing with a couple of venture capitalists over lunch about why its Series A valuation should be higher than $12 million pre-money. Salesforce has generally been one to signify corporate strategy shifts through their acquisitions, so you can understand…

9:15 am PDT • July 29, 2019
The Exit: The acquisition charting Salesforce’s future

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Embedded finance, or why fintech mega VC rounds have become so common

Another day, another monster fintech venture round. This morning, it was personalized banking app MoneyLion, which raised $100 million at a near unicorn valuation. Last week, it was N26, which raised another $170 million on top of its $300 million round earlier this year. Brex raised another $100 million last month on top of its…

12:13 pm PDT • July 23, 2019
Embedded finance, or why fintech mega VC rounds have become so common

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What seed-stage dilution tells us about changing investor expectations

Round sizes are up. Valuations are up. There are more investors than ever hunting unicorns around the globe. But for all the talk about the abundance of venture funding, there is a lot less being…

11:02 am PDT • July 16, 2019
What seed-stage dilution tells us about changing investor expectations

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When is the right time to pitch VCs for funding?

 A compelling pitch deck that quickly and clearly presents your startup as an exceptional investment opportunity is a clear edge when raising a round. But could fundraising be more effective if you…

9:02 am PDT • July 2, 2019
When is the right time to pitch VCs for funding?

Startup founders don’t typically launch a company as a get-rich-quick scheme. Most know that it will be a long, hard slog if they are to succeed. There will be lean…

Startup founders need to decide how much salary is enough

Three years ago, I met with a founder who had raised a massive seed round at a valuation that was at least five times the market rate. I asked what…

How to negotiate term sheets with strategic investors

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Why is Andreessen Horowitz (and everyone else) investing in Latin America now?

Investments by U.S. venture capital firms into Latin America are skyrocketing and one of the firms leading the charge into deals is none other than Silicon Valley’s Andreessen Horowitz. The firm that shook up Silicon Valley with potentially over-generous term sheets and valuations and an overarching thesis that “software is eating the world” has been…

10:17 am PDT • June 13, 2019
Why is Andreessen Horowitz (and everyone else) investing in Latin America now?

Building a company is fueled by highs and lows, but one of the few moments of potential ecstasy (or perhaps for grizzled veterans, deep annoyance) is the VC outreach email.…

Fundraising 101: Do VC associates matter?

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What top VCs look for in women’s fertility startups

A number of promising women’s health tech companies have popped up in the last few years, from fertility apps to ovulation bracelets — even Apple has jumped into the subject with the addition of period tracking built into the latest edition of the watch. But there hasn’t been much in the way of innovation in…

10:05 am PDT • June 10, 2019
What top VCs look for in women’s fertility startups

Let’s go beyond the high-level fundraising advice that fills VC blogs. If you have a compelling business and have educated yourself on crafting a pitch deck and getting warm intros…

Fundraising 101: How to trigger FOMO among VCs

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The Exit: Getaround’s $300M roadtrip

In August of last year, Getaround scored $300 million from Softbank. Eight months later they handed that same amount to Drivy, a Parisian peer-to-peer car rental service that was Getaround’s ticket to tapping into European markets. Both companies shared similar visions for the future of car ownership, they were about the same size, both were…

11:00 am PDT • May 21, 2019
The Exit: Getaround’s $300M roadtrip

The well-known tech startup routine of coming up with an idea, raising money from venture capitalists and other outside investors in increasing rounds as valuations continue to rise, and then…

Mailchimp’s Ben Chestnut on bootstrapping a startup to $700M in revenue

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Data tells us that investors love a good story

Here’s how pitch decks are successfully bringing in funding today, according to DocSend.

3:17 pm PDT • April 12, 2019
Data tells us that investors love a good story

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How to delay your Form Ds (or not file them at all)

Building a startup is incredibly tough. There are the constant ups and downs, the moments of sheer ambiguity and terror. And so, few moments in a startup’s life are as triumphant — and crystal clear — as closing a round of funding. Yes, yes, raising venture capital shouldn’t be celebrated as a milestone, and the…

10:44 am PDT • March 28, 2019
How to delay your Form Ds (or not file them at all)

As the saying goes, where you stand on an issue often rests on where you sit. Translated into startup law and finance, your views on how to approach fundraising are…

Why convertible notes are safer than SAFEs

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Pre- and Post-Money SAFEs: Choosing the right one for your startup

With Y Combinator’s Demo Day taking place at Pier 48 in San Francisco next week, its largest batch of companies ever is getting ready to present to an audience of select investors. Having taken Atrium through Demo Day myself, I have first-hand knowledge of the process. When the founders have finished their pitches, the time…

10:15 am PDT • March 16, 2019
Pre- and Post-Money SAFEs: Choosing the right one for your startup

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What to watch for in a VC term sheet

When startup founders review a VC term sheet, they are mostly only interested in the pre-money valuation and the board composition. They assume the rest of the language is “standard” and they don’t want to ruffle any feathers with their new VC partner by “nickel and diming the details.” But these details do matter.

2:09 pm PDT • March 15, 2019
What to watch for in a VC term sheet