In an article published today (“Web Start-Ups Get Upper Hand Over Investors”), the Wall Street Journal reported (emphasis added) that “As venture capitalists scramble to get a piece of Silicon Valley’s new Web boom, entrepreneurs … are finding they have the upper hand.”
Here are some of the points the article makes about the latest Web boom:
- As VCs search for the next Facebook or Twitter, some entrepreneurs are positioned to have a greater say about how much they raise and deal terms.
- Bidding among VCs is driving up the price of many deals.
- Angel investors are driving up the prices of the tiniest early-stage companies.
- Some entrepreneurs are taking advantage of the situation by seeking the best advisors rather than the greatest amount of money.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
The evening of Wednesday, February 16, the Silicon Valley Association of Startup Entrepreneurs (SVASE) will present Raising the First Round at the beautiful Crow Canyon Country Club in Danville, California (tasty buffet dinner included). Description from the SVASE website:
Whether it comes from VCs, angels, or friends and family, the first round of funding always is a challenge. Listen to experienced investors as they explain what they are looking for in early-stage companies, and to successful entrepreneurs as they describe what leads to success and what doesn’t. Learn how to identify the right investors, where to find them, and ways to structure the first round to set the stage for the next one.
The panel:
- Randy Hawks, Claremont Creek Ventures
- David Stern, Clearstone Venture Partners
- Skip Glass, Foundation Capital
- Bipul Sinha, Lightspeed Venture Partners
Moderator: Riaz Karamali, Sheppard Mullin
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
The evening of Wednesday, January 19, the Silicon Valley Association of Startup Entrepreneurs will present “The Mobile Revolution”. Here is the description:
Mobile devices are revolutionizing how we consume content, conduct business and communicate. iPads/tablets, alone, were estimated to have sales of more than 20M units by the close of 2010 (Gartner). There are unprecedented opportunities for entrepreneurs and investors alike in location-based services, mobile advertising, apps, user-interfaces, security and countless other areas. Hear from our panel of VCs about opportunities they are focusing on and their investment criteria for mobile-market start-ups.
The event will take place at the beautiful Crow Canyon Country Club and will include a tasty buffet dinner.
Yesterday the Wall Street Journal published a fascinating article (Dear Contact: Send Cash) about a startup that obtained first-round funding of approximately $350,000 via LinkedIn.
The founder sent an appeal to his 700 contacts, offering ownership of 2% of his company in exchange for approximately $35,000. Within eight days, ten investors (the target number) were lined up
The founder must have had an impressive set of contacts. In any event, I’m impressed – this was a creative approach that saved the founder a huge amount of time.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
The evening of Wednesday, November 17, the Silicon Valley Association of Startup Entrepreneurs (SVASE) East Bay Series will present What’s Hot – What VCs Like and Why at the beautiful Crow Canyon Country Club in Danville, California (tasty buffet dinner included).
Description: To build a fundable company, you need to know the areas that investors are focusing on. Venture capitalists specialize in identifying important and lucrative opportunities before they become trends. So, what are VCs intrigued by today? Where will their money be invested? What is the effect of recent economic conditions? Learn what you will need to build a company that capitalizes on the latest developments.
Panel members:
- Skip Glass, Foundation Capital
- Saad Khan, CMEA Capital
- Additional panel members to be announced!
Check out all posts about SVASE.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
The evening of Wednesday, October 20, the Silicon Valley Association of Startup Entrepreneurs (SVASE) East Bay Series will present “Closing the Deal: Terms and Valuations” at the beautiful Crow Canyon Country Club in Danville, California (tasty buffet dinner included).
Description: A good deal is good for everyone. It isn’t just about how much the entrepreneur receives and what the VC takes. It’s about what each party brings to the table, shared risk, and shared reward. Hear what dealmakers say about getting the transaction done and done well. Our panel will discuss what you should expect regarding process, typical deal terms, how valuations really are set, and ways to anticipate and avoid obstacles.
Panel members:
Check out all posts about SVASE.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
At 6 pm on Wednesday, September 15, the Silicon Valley Association of Startup Entrepreneurs‘ East Bay Series will present “Picking the Right VC” at the beautiful Crow Canyon Country Club in Danville (tasty buffet dinner included).
Panel members:
- Kent Godfrey, Pond Venture Partners
- Tim Wilson, Partner, Partech International
- Sean Jacobsohn, Harvard Angels
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
AngelList Logo
There are plenty of companies seeking seed-stage financing, and plenty of seed-stage investors. How can they find one another effectively? AngelList is one answer.
Started in February 2010, AngelList is a straightforward application of social-media principles:
- Individual seed investors who join provide information such as location (primarily Silicon Valley), fund type (primarily angel or venture capital), companies they have invested in, investment criteria, and amount they want to invest.
- Entrepreneurs are prompted to provide various pieces of information that comprise a “pitch” and to state whether they want introductions to all angels or to specified angels.
- AngelList’s founders (Nivi and Naval from Venture Hacks) review each pitch. Each pitch that is accepted is forwarded to the angels requested by the entrepreneur.
In the half-year that AngelList has existed, more than 30 introductions have resulted in investments.
Check out all posts about angel investors.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
Many startup companies are betwixt and between when it comes to funding: They need too much for angel investor groups, but too little for venture capitalists. According to the Wall Street Journal (‘Super Angels’ Alight), there is a new breed of investor that fills the gap, the “super angel”.
What makes these angels “super” is their ability to attract other investors. Whether collaborating with one another informally or through recently-formed funds, they can invest $1 million or so and be satisfied with an exit a few months to a few years later.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
In an article published today (Start-Ups Get Free Chance to Pitch to Angel Investors), the Wall Street Journal discusses ways that startups cal pitch to angel investors without having to pay a fee.
Thrust of the article: Some angel investment groups require that entrepreneurs who need funding pay for the right to present their businesses for consideration. Organizations fighting the “pay-to-pitch” approach include Open Angel Forum and AngelList.
Related posts:
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
Dana Shultz is a business-savvy lawyer located in Northern California's San Francisco Bay Area (in the East Bay, near Oakland) who has in-depth knowledge of law, business, technology, and the needs of startup and early-stage companies.