Every once in a while, I’m reminded just how harmful overlawyering can be. I just finished preparing an operating agreement for 3 partners in a new venture. They have a promising startup with a couple hundred thousand in seed capital, seeking to raise maybe a half million more to fund their initial operations. I worked [...]
Seeing last week’s Venture Capital Dispatch in the online Wall Street Journal, When Venture Capitalists Let One Slip Away, reminded me of Jim Armstrong’s (Clearstone Venture Partners) comment last year about false negatives. “You can afford to have a false positive; you can afford to invest in things and fail, but because the big ones [...]
Over the last few years I’ve written extensively on strategic exits and encouraged Angel investors to concentrate their investments where a strategic exit is highly likely. I have focused on strategic value investments as I have found convincing evidence to show that these have higher ROI, shorter investment periods and lower execution risks. I have [...]
On Thursday (10/22) this week, join us for a full day of worthwhile events in Altadena at Tech Week. The morning’s session features a Cleantech program, moderated by Ben Kuo of SocalTECH.com. Along with Ben’s program, there’s a great keynote presentation by Barbara McQuiston of DARPA and a couple of panels featuring Wired Magazine reporters. [...]
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Scalability is Critical for a High Strategic Value Premium
When we’re evaluating a possible investment, it is easy to neglect how the strategic value premium will be determined and how this impacts on what we can expect as an exit value. Our initial focus is generally on target need, customer and competitive advantage but while these protect the business they don’t guarantee high growth [...]