fundraising

  • 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