Tag Archives: Venture Capital funding

Unicorns May Be Over-Valued

Interested in the Unicorns? Beware! Many unicorns have already achieved notable marketplace success and will undoubtedly survive and even thrive over the long term. Nevertheless, even in the case of those making considerable strides in the marketplace, some of their current valuations strain credulity. We believe that, in many cases, their late-round investors risk vulnerability […]

Selecting a Venture Capital Firm to Invest With

Unless you already know a lot about venture capital and also have a lot of time on your hands, we’d suggest you focus on venture capital firms and exclude angel groups from your consideration set. Angel groups generally require considerable time from their members, who typically handle the venture screening, due diligence, and investment administration […]

Prospecting for Gold, or, Better Yet, Drilling for Oil

Prospecting for venture capital gold can be as challenging as was prospecting for actual gold back in the gold rush. Many other miners are also searching for the mother lode. You will need a competitive advantage—all the known art plus some entrepreneurial inventiveness—to prevail. Part of the known art is recognizing that there are far […]

Co-author Len Batterson a Leading VC for Individual Investors

Len (Batterson) has been one of the nation’s leading entrepreneurial venture capitalists for over 30 years. . . . Len’s series of notable successes began while at Allstate, where he played an integral role in the financing and restructuring of Control Video Corporation, which became America Online, Inc. (AOL). On its merger with Time Warner, […]

Prospecting for a Venture Capital Investor

Unfortunately, you need to understand the realities: Most new ventures fail. (We know, you’ve heard that already countless times.) They are inherently risky. You are risky. (Sorry.) A major reason why most new ventures fail is that they are unable to raise the capital needed to buy time in order to fix problems and get […]

Great aggregate returns attract institutions

Institutions Love Venture Capital’s Great Aggregate Returns . . . Aggregate returns for the asset class have historically been outstanding, and there’s no sign that will change anytime soon. This is demonstrated well by the Thomson Reuters Venture Capital Research Index, launched in 2012 to replicate the venture capital industry as a whole. Based on […]

Why the Effective VC Should Be Able to Beat Buffett’s Returns

At this point, you may be asking the question, if the principles of successful venture capital investment are so similar to Buffett’s rules, why should one expect the effective VC to be able to go beyond matching Buffett’s performance and to beat his results? The answer is based on the very essence of venture capital […]

New Online Venture Capital Firms Mean Greater Funding Availability for Entrepreneurs

A truly new development in venture capital is the recent emergence of . . . online venture capital investment portals. These firms have increased significantly the accessibility of investment opportunity for the roughly ten million Americans who qualify as accredited investors. This in turn has increased accessibility of funds for entrepreneurs seeking venture capital funding. […]

Due Diligence Importance to Entrepreneurs

Due Diligence Important . . . Even for Entrepreneurs Venture capitalists are both hunters and gatherers. They seek out the best and the brightest among entrepreneurs and their ideas. Once they have an initial intuition that they have found a likely winner, they go into data gathering and analysis mode, which in the industry is […]