Venture Capital

It is hard to argue with the following two facts:   Winning  It’s easier to earn lots of money if you have access to lots of money. Losing  It’s easier to lose lots of money if you have access to lots of money.   Venture Capitalists provide an access point for winning big or losing big.  Many of you already know that three out of four venture-backed startups fail.   This means that VC’s count on one startup to score a large enough bounty that loosing the other three startups doesn’t matter to them. …

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Devil with duct taped halo

Of Angels and Demons

Angels are a crazy breed of human being that have the means and desire to wager large sums of money on the success of startups.  Of course, these crazy and wacky humans aren’t as crazy as the typical gambler.  They’re playing a game that’s rigged in their favor (as long as they play it right).   The Odds: Let’s say that ninety percent of angel-funded startups fail – only 10% succeed.  That means to break even, an angel must invest in at least ten startups that will each provide 10x…

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Bootstrapped rocket man

Bootstrapped

As an investor, you may find it odd that I encourage entrepreneurs to avoid outside investment as much as possible in favor of bootstrapping.  If you’re not familiar, “bootstrapping” a company means starting with very little equity (usually eating away at the entrepreneurs savings), and then building revenue quickly.  In the last few decades the paradigm has shifted away from bootstrapping to raising angel investment, private equity or VC.  Today’s college grads often don’t know that you can bootstrap a company.  In my humble opinion, there is nothing that can cure…

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