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Venture Capital This Week | June 18 - 22

Friday, June 22, 2012 9:43:00 AM PDT | VentureDeal

It's never a dull week in venture capital. Things may be happening behind the scenes, but somehow it eventually comes out. We pick the best stories, blog posts and other intel inside the VC ecosystem here in the US and in happening places around the world. Onward dear reader…

 

E-COMMERCE LTV

VC Jeremy Liew at Lightspeed Venture Partners has a short but sweet post on how he suggests calculating the lifetime value for e-commerce businesses.

Jeremy Liew: How To Estimate E-Commerce LTV

He suggests using a cohort analysis approach and also wants to see an LTV/CAC (Customer Acquisition Cost) ratio of greater than 2.5.

 

RADICAL SUCCESS

If you didn't feel enough pressure to succeed already, here's an article that talks about how to be "radically successful".

VentureBeat: 5 Traits of Radically Successful People

The traits listed are all well and good, but the 4 hours of nightly sleep trait would leave me walking into door jams.

 

PASSING ON AN INVESTMENT

VCs decide not to make investments all the time. They all say no differently and for different reasons.

FeldThoughts: It's Hard to Tell Someone They Suck

Longtime Internet VC Brad Feld has a great post up about how he whittles down potential investments and how he evaluates whether or not he likes the startup team.

 

LIFE SCIENCE VCS DOING WELL

Even though general technology and Internet companies seem to get all the press, it’s the life sciences that are producing some of the best returns.

PE HubLife Science Greatest Hits

According to a recent in-depth report by Wilmer Hale, pharma and medical device companies have scored some of the biggest M&A exits lately.

 

INDEX VENTURES AND THE STATE OF VC

Mike Volpi of noted European and US venture capital firm Index Ventures was recently interviewed by Kara Swisher of AllThingsD:

AllThingsD: VC After Facebook IPO

After getting past Swisher’s typical interruptive style (which is annoying), Volpi provides a little of his insight into the future of startup investing.

 

STARTUPS IN…ICELAND?

There was a recent Startup Iceland event showcasing tech startups in the frozen north:

FeldThoughts: Startup Iceland Interview with the Brads

The "Brads" refer to two top Internet VCs, Brad Feld of the Boulder, Colorado-Based Foundry Group and Brad Burnham of New York City-based Union Square Ventures.

 

VALUATIONS FLY SOUTH AFTER FACEBOOK IPO

IPOs matter. At least the recent Facebook IPO flub, which has affected startup valuations in the Internet and digital media spaces.

The Verge: Tech Startups Fall Back to Earth

According to an interview with Goldman Sachs Global Telecommunications, Media and Technology director Anthony Noto, it is going to be a lot more difficult and expensive for young companies to raise capital now.

 

MICROSOFT ACCELERATOR REVS UP

Microsoft has teamed up with TechStars to create and promote the Microsoft Accelerator in Seattle, Washington.

FeldThoughts: Microsoft Accelerator Is a Hit

The accelerator is now in its second cycle of companies, which receive $20,000 in funding, $60,000 in Microsoft Azure services, office space, training and other support.

 

A FAILURE OF ACCELERATION?

Startup accelerators are all the rage now, what with the low cost of starting Internet companies, but a recent article highlights the failure rate:

ReadWriteWebStartup Accelerator Failure Rate

The post cites research by a partner at Houston venture capital firm DFJ Mercury who found that 45% of the top 29 North American accelerators didn't produce a single graduate that went on to raise venture funding. Yikes!

 

YOUR STRATEGY DOESN'T COUNT

VC Phineas Barnes has a good piece up about how consumers care about what your service does for them, not your business strategy.

Sneakerhead VC: Features Touch Consumers

He cites a real world example of how a company turned away from product strategy and focused on consumer experience to generate success.

 

CROWDFUND OR VC?

Considering crowdfunding for your startup? Don't want to play the VC game?

Pando Daily: Crowdfund or VC, but Not Both

Michael Carney makes a good case about the risks associated with crowdfunding, with the resultant large number of investors creating too much "hair" on the deal for VCs to follow.

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