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Venture Capital This Week For Sept 1 - 6

Thursday, September 06, 2012 8:31:00 AM PDT | VentureDeal

It's always an interesting week in venture capital. Discover the best stories, blog posts and other information inside the VC ecosystem in the US and in hotspots around the world. Onward dear reader…

 

STARTUP LESSONS

Lightspeed Venture Partners has a Summer Fellowship Program where they bring in knowledgeable speakers from the tech world in Silicon Valley.

Lightspeed: Startup Lessons from Ben Silbermann of Pinterest

The post highlights five tips from the CEO of the rapidly growing consumer Internet service.

 

CONVERTIBLE DEBT GOING AWAY?

Lending money to early stage startups has waxed and waned as a strategy over the years.

Fortune: Convertible Equity

Inspired by Sequoia Capital, some startups are receiving capital contributions in the form of an equity investment at a future value, "like an option with a present-day purchase price."

 

DEBT VS. EQUITY

Canadian-based VC Mark MacLeod has a good overview of the pros and cons of debt versus equity financing.

Endeavor Global: Financing Your Business

The piece goes into some detail on different types of debt and equity financing, as well as specialized sources of funding.

 

ALL MONEY IS NOT THE SAME

This investor, a senior founding partner at Runa Capital, says that the source of venture capital is as important as the money itself:

TechCrunchConsider the Source

“The net-net is that quality costs money. And quality money costs more, too.”

 

LIFETIME VALUE (LTV) IS OVERRATED

Noted VC Bill Gurley has a long and valuable post about the dangers of overusing the Lifetime Value Formula (LTV) for determining marketing spend dynamics.

Above the Crowd: A Dangerous Seduction

Gurley says that the widely used formula is overly simplistic and extremely sensitive to the assumptions used in the model, which are sometimes abused or misunderstood by its practitioners.

 

ANGEL BUBBLE

John Backus of New Atlantic Ventures pulled out an interesting chart from a new NVCA (National Venture Capital Association) report.

NAV Blog: Find the Bubble

The takeaway is that angel funded companies continue to be created at rates that cannot be absorbed by institutional venture capital.

 

SMALL-CAP IPOS

New York-based VC Alan Patricof is advocating the need to create conditions to allow smaller companies to go public.

Fortune: Bring Back the Small Cap IPO

Patricof supported the recent JOBS Act and wants regulations that encourage the return of small IPO underwriters, among other reforms.

 

CAN ELEPHANTS DANCE?

Scott Anthony has a thought-provoking piece about what he sees as the beginning of large corporations becoming better at developing innovations in-house.

Harvard Business Review: The New Corporate Garage

The author says that large companies are embracing open innovation and less hierarchical management to encourage entrepreneurial behaviors.

 

A WOMAN'S VIEW OF RAISING VENTURE CAPITAL

Forbes has an interesting article by Julia Pimsleur, an entrepreneur who recently raised venture capital financing.

Forbes10 Things I Wish I Knew

Point #2: Meet with Other Entrepreneurs and Advisors.  She spent six weeks tapping her networks before taking any meetings.

 

VENTURE CAPITAL FRIEND: SECONDARY MARKETS

Xconomy has highlighted the viewpoint of a recent report on the impact of secondary markets in the technology venture capital world.

XconomySecondary Markets: Friend or Foe?

The report says that secondary markets play an important role in generating liquidity, which is the lifeblood of innovation.

 

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