The Wrong Reasons to Pursue Venture Capital: Salaries and Personal Credibility


This post is by MPD from MPD’s Blog - Medium


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This post is a continuation of my series of key segments from my book, The Fundraising Rules.

There are a lot of good reasons for entrepreneurs pursue venture capital, including scaling your company more rapidly, developing complex technologies or entering new markets. There are, however, bad reasons to pursue venture capital.

Two of the most common wrong reasons to pursue venture capital are the pursuit of a steady paycheck for the founders and personal credibility.

Raising VC for the sole purpose of obtaining a salary is not the right approach. Raising venture capital is commitment to far more than just raising money; it’s a commitment to manage your company for growth (not profits) and to work towards ends consistent with the needs of your venture partners. If all you need is a suitable salary, you may be able to achieve this objective by raising smaller amounts of capital from angels or

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Fiverr rings the NYSE bell


This post is by Philippe Botteri from Cracking The Code


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Micha Kaufman, Fiverr’s founder and CEO

What a great achievement for Micha Kaufman and the whole team at Fiverr, which made its debut on the NYSE today. They have built a company that is changing how the world works together, and which facilitate millions of transactions between buyers and sellers across over 200 categories.

We first invested in Fiverr and its team of 40 in May 2012. Today the team supports a global network in more than 160 countries, and the platform has facilitated over 50 million transactions – between 5.5 million buyers and 830,000 sellers – opening up a new universe of talent for companies, and potential clients for independent workers.

When Fiverr began in 2010, e-commerce platforms existed to sell products. Micha, along with co-founder Shai Wininger, had the vision to see that the same was possible in services – productizing them so that buyers could enjoy

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Fringe Companies: Bootstrap or Venture Capital?


This post is by MPD from MPD’s Blog - Medium


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This post is a continuation of my series of key segments from my book, The Fundraising Rules.

Figuring out how to finance a company is easier for some founders than others. The choice is difficult when a business could make a great lifestyle business or a great venture-scale business. To clarify, this is a somewhat unique situation, as many startups are either not viable as small lifestyle businesses or do not have the potential to achieve venture scale. I call companies that could become either of these fringe companies. To clarify, by lifestyle business I’m referring to smaller businesses (typically less than $10 million in annual sales at peak) that the founders don’t intend to sell; rather, they intend to extract profits from the business in perpetuity. A venture-scale business is one that grows to much more than $10 million in annual revenue and has real potential to ramp to

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Scaling tips from John Chambers: Part 2 – Spotlight on acquisitions and managing crises


This post is by Philippe Botteri from Cracking The Code


Click here to view on the original site: Original Post




At VivaTech this year, we were fortunate to be joined in conversation by former Cisco CEO and Executive Chairman John Chambers, who now invests in early-stage tech start-ups around the world. Alongside former Accel partner Joe Schoendorf, John offered insights on the realities of leading a fast-growing company and handling issues of talent, culture, strategy, and scale.

In this second extract from our roundtable, John and Joe share their playbooks for managing acquisitions as you scale and handling crises.

What is your advice on when and how to make acquisitions?

Joe:Marc Benioff at Salesforce is very good at this. He has a very clear strategy and never makes an acquisition that doesn’t fit with it. The strategy needs to come first and you then find companies to align with it, not the other way around. 

John: Having acquired 180 companies during my tenure at Cisco, I have developed Continue reading “Scaling tips from John Chambers: Part 2 – Spotlight on acquisitions and managing crises”

Want VC? Be Ready to Go Big


This post is by MPD from MPD’s Blog - Medium


Click here to view on the original site: Original Post




This post is a continuation of my series of key segments from my book, The Fundraising Rules.

The size of exit should also dictate whether an entrepreneur takes the VC route. Generally speaking, venture capitalists need their portfolio companies to exit for very large values in order to meaningfully impact their returns. Typically this means eight- or, better yet, nine-figure exits (tens or hundreds of millions of dollars) are required to “move the needle.” As a result, VCs may often opt to pass up opportunities to sell their portfolio companies that are showing strong potential for seven or even eight-figure valuations — they’ll want to hold out for the bigger exit. Doing so usually helps maximize returns for all parties (including the entrepreneur); however, it requires more patience and a stronger stomach for risk.

Further to this point, VCs structure their investments using liquidity preference to align incentives — compelling the entrepreneur to hold

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Scaling tips from John Chambers: Part 1 – Spotlight on culture and talent


This post is by Philippe Botteri from Cracking The Code


Click here to view on the original site: Original Post




For the leader of any fast-growing company, every day brings a new challenge. A CEO has to manage issues of strategy, culture, talent, customer service and reputation – often all at once.

At VivaTech last week, we got an insight into the first-hand experience of John Chambers who was CEO and Chairman of Cisco from 1995-2017, and who now invests in early-stage tech start-ups around the world, with a particular focus on mentoring emerging leaders. John was joined in a roundtable discussion by Joe Schoendorf, a former Accel partner who has held senior roles at companies from Hewlett Packard to Apple, and who served on the board of the World Economic Forum.

In this first extract from our roundtable, they share their experiences in shaping company culture and handling negotiations with top talent. 

What is the secret to building a robust company culture?

Swedish music sampling startup Tracklib records $1.7 mln


This post is by Iris Dorbian from PE Hub Blog: Venture Capital Deals


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Stockholm-based Tracklib, a music sampling startup, has secured $1.7 million in funding. The investors were Sony Innovation Fund, WndrCo and Jörg Mohaupt.

PRESS RELEASE

Stockholm-based Tracklib, the world’s first record store with songs for sampling, raised $1.7 million to act on its ambitious plan to expand its user base and recording catalog. The round was joined by Sony Innovation Fund; WndrCo; and Jörg Mohaupt, a private, early-stage investor who has invested in several other music companies including Discogs and Amuse. The funding round is in preparation for a Series A funding later this year.

Tracklib will use this funding to continue expanding the user base and music catalog of its pioneering service – affordable, instant sample licensing – to bring more great music to more music producers and artists. Offering a large and diverse catalog of licensed original recordings, including unique stems and multitracks, the groundbreaking service

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Quentic scores funding from One Peak and Morgan Stanley


This post is by Iris Dorbian from PE Hub Blog: Venture Capital Deals


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Berlin-based Quentic, a European providers of software as a service solutions for environment, health, and safety and corporate social responsibility, has secured 15 million euros in funding. The investors were One Peak Partners and Morgan Stanley Expansion Capital.

Source: Press Release

On-demand staffing app Instawork lands $18 mln


This post is by Iris Dorbian from PE Hub Blog: Venture Capital Deals


Click here to view on the original site: Original Post




Instawork, on-demand staffing app for gig workers and hospitality businesses, has raised $18 million in funding, according to a blog post on its site. The investors were Spark Capital, GV, Burst Capital, Benchmark, Y Combinator, Tuesday Capital and SV Angel. As part of the round, Nabeel Hyatt, a general partner at Spark Capital, will join the Instawork board.

 

Common Financing Mistakes: Bootstrapping Your Company to Death


This post is by MPD from MPD’s Blog - Medium


Click here to view on the original site: Original Post




This post is a continuation of my series of key segments from my book, The Fundraising Rules.

We have all heard the glamorous stories of entrepreneurs becoming billionaires by maxing out their credit cards and launching startups out of their garages. It does happen, but for every success story there are many more failures. While this doesn’t mean that entrepreneurs should cower from a challenge, there are lessons to be learned about how to mitigate some of the risk in the venture. Entrepreneurs should not over-extend their personal finances when starting a company.

While this advice does run counter to the financing strategies prevalent in entrepreneur folklore, I agree with it. When an entrepreneur assumes too much personal financial distress, he loses the ability to invest time in building a business. Put another way, as a person approaches bankruptcy, they lose freedom to be entrepreneurial. If a mountain of credit card

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Chinese travel website Mafengwo racks up $250 mln


This post is by Iris Dorbian from PE Hub Blog: Venture Capital Deals


Click here to view on the original site: Original Post




Mafengwo, a China-based travel website, has raised $250 million in funding. Tencent Holdings Limited led the round with participation from General Atlantic, Qiming Venture Partners, Yuantai Evergreen Investment Partners, NM Strategic Focus Fund and eGarden Ventures.

Source: Press Release

Lion Street completes recap


This post is by from PE Hub Blog: Venture Capital Deals


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Lion Street said May 22 that it completed a recapitalization of the company which returned equity the firm and its owners. Lion Street, of Austin, provides life insurance services. The company has raised $11.1 million in funding, from investors including Austin Ventures, PitchBook said.

PRESS RELEASE

AUSTIN, Texas, May 22, 2019 /PRNewswire/ — Lion Street announced today that it has completed a recapitalization of the company. This transaction returned equity to firms and producers, as well as to the private equity firm. This process demonstrates the evolution of Lion Street as a major distributor of life insurance and wealth management products. It also validated the core belief that the company’s advisors should be first in line for the value created.
“Lion Street’s key differentiator and the core of its value proposition has always been the promise that the company’s Owner-Firms would participate in the value that they create,”

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