Published: 1/30/2008 10:30:33 AM, comments: 0
VentureDeal is a database that tracks technology companies that are funded by
traditional venture capital firms, and the firms and people doing the funding. We also track when tech companies are involved in an M&A transaction.
What makes VentureDeal different?
Well, for one, we track the people that are involved in doing the
financings of tech companies, such as the venture firm partners.
track those people because if you are a tech company looking for
funding, it's a good idea to know who the individual people are that
you should be trying to talk to. This is important because the venture
capital business is a very people oriented business.
matter that much if you know that a VC firm is active in your industry - it
matters much more if you know who at the firm is active. In that
respect, you can then work on getting an introduction to that person.
The more you focus on the 'right' people, the better your chances of getting the funding you seek.
Published: 1/23/2008 8:26:49 AM, comments: 2
As the CEO of VentureDeal, I get contacted a lot by
entrepreneurs seeking information and advice on "the secret" to
getting in touch with the right venture capitalists for their fledgling
company. My answer usually contains two parts:
1. Find the right VCs to focus on. This is where the VentureDeal
database comes in handy. It tells you the firms and most importantly, the
individual partners who are active in your industry. You can also find information about whom to approach by connecting with your network, people in your industry, etc.
2. Contact the VCs. The best way to contact VCs is through an introduction, by
your well-connected attorney, accountant or consultant. The next best way
is to network heavily and find them at conferences or seminars. The least
best way is "over the transom", or contacting them directly with no
introduction. VCs will fund deals that come this way, though not as many as the deals they source through trusted contacts.
So that's the basic concept. It's two steps: first, define who your
targets are and second, go after them in the most advantageous way possible.
Published: 1/14/2008 5:23:29 PM, comments: 0
As an online publisher, I make my way around various prominent blogs
and sites throughout the day. I notice a seemingly ever-increasing
amount of "link bait", or what used to be referred to as screaming
This is a general trend that isn't helpful to a reasoned
understanding of events. I won't single out any particular offenders,
because it is so widespread, but the effect is that it blows
events or analysis of them out of proportion.
With the explosion of media available to consumers, and the resulting competition for our attention, I expect this trend to continue.
What to do about it? My approach is to be skeptical of everything I
read. The days when we put a lot of trust in large organizations to
tell us "the way it is" are long gone.
For me, the concept is "Trust, but Verify,
" That's why at VentureDeal, for every transaction in our
database, there is a source URL letting subscribers know where the
information came from. And every contact record refers to the company website - for users to see for themselves. Transparency is always a good thing!
In a world that increasingly runs on information, "Trust, but Verify"
should be the default approach, no matter what the source is.
Published: 1/9/2008 1:26:47 PM, comments: 1
I'm pleased to announce a complimentary E-book guide to working with angel groups.
Angel Group Financing
(202 kb PDF) is designed to help entrepreneurs understand modern angel
groups and how they operate, evaluate and invest in emerging technology
Click here to download your free copy - there's no registration or other information required.
And while you're at it, feel free to pass it along to colleagues, friends or entrepreneurs you think might benefit from the information.
Published: 1/8/2008 10:08:13 PM, comments: 0
I'm not an expert on consumer vs. enterprise in the software industry, but it sure seems to me
that Microsoft has a very strong presence in the enterprise market that
is going to be difficult for Google to gain much ground on.
Enterprises have a strong inertia, and as long as MSFT updates its
products to take advantage of some of the newer technology concepts such as
computing in the cloud where applicable, it will keep GOOG largely at
Google's strength is definitely on the consumer side, and it has a huge uphill battle for the enterprise.
What do you think?
Published: 1/2/2008 11:29:19 AM, comments: 0
As part of an ongoing series about entrepreneurs working with angel
groups, this post is a second part of the due diligence process: deal
Angel groups will usually begin discussing terms while they are performing due
diligence on you and your company. The reason is that they want to
send out deal feelers to see if there is a basis for negotiating a deal
before they spend too much time in due diligence.
When discussing deal terms, many entrepreneurs get stuck on trying to
be a tough negotiator. It's understandable - you've worked hard to get
your company to where it is, and you want to control the process as
much as possible. In addition, you want to keep as much of your
company as you can. Sophisticated angels understand this because they
are usually entrepreneurs themselves!
I counsel entrepreneurs to focus more on getting the right angels as
their investors, and less on squeezing the last nitpick deal term.
Reasonable negotiation is fine, and a good indicator of both parties'
definition of a company's value, but if you find yourself spending in
inordinate amount of time wrangling over negotiating points, it may be
worthwhile to step back and ask yourself if you are focused too much on
the fine points, to the detriment of moving forward and getting the
As for the various deal terms themselves, there are numerous books
can help you get a clearer understanding. In any event, you should
have competent legal counsel that is not conflicted representing your