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With technological advancements in developing nations speeding the growth rate of high impact tech start-ups, many American venture capital firms are now looking further afield to expand their investment portfolios. But what is driving this trend?1. Lack of local funding
There’s certainly no shortage of innovative ideas coming out of emerging market countries. Africa, China, Russia and many others are growing steadily, and are producing an ever-increasing number of tech success stories, many with an extensive global reach.However, the potential for ...
Y Combinator, a leading seed investment incubator, recently announced that it would be accepting startup applications for this years fund from startup founders WITHOUT an idea.Here's how the incubator describes itself on its website:Y Combinator does seed funding for startups. Seed funding is the earliest stage of venture funding. It pays your expenses while you're getting started.Some companies may need no more than seed funding. Others will go through several rounds. There is no right answer. How ...
Over the past six months I have spoken with a wide variety of people who have shown, in varying degrees, interest in investing in my company. Many of these VCs have specific ways that they conduct a call, interview or meeting. Many of them have lead me down long and wasteful due diligence processes, many have been kind, some have been blunt and harsh but all have been pedantic and specific about the types of questions they ask.I have found ...
The value of attending networking events is often hard to quantify, as it takes valuable time, but it is worth the effort especially if you are considering starting your own business; building an innovative product or trying to raise funding.Funders invest in companies and founders they knowAlthough we receive many proposals through our website at the VC firm I'm part of, all of the deals that we have concluded (i.e. invested in) to date, have been sourced through our networks. ...
Every two or three years, VC's gear up to raise money for their next fund. They create a pitch deck, come up with a list of investors actively investing in venture capital funds, make sure they get introductions to them from trusted sources -- or go direct if they already have the relationship, and pitch the investment strategy and how they plan to provide better returns than the industry average. Sound familiar?
For established funds with a solid track record ...
Receiving venture capital (VC) funding is a significant accomplishment for any entrepreneur as it takes months of hard work and negotiation. Some entrepreneurs believe that once they have secured a funding commitment from an investor, they will have carte blanche with the cash and can report back to their investors as and when it suits them.Nothing could be further from reality. A VC will not write you a cheque for the full amount allowing you to spend it as you ...
I recently watched a documentary on Steve Jobs called "One Last Thing". It was well done, mixing a fair bit of the good, the bad, and the ugly about the life of the man.There was also a lot of praise for the "marketing genius" of Steve Jobs.Then it struck me: If Steve Jobs were starting out today in Silicon Valley, he would have trouble getting funding because he's a "marketeer" -- not an engineer. Venture capitalists(VC) generally won't fund startups ...
Enthusiastic entrepreneurs looking to raise funding must realise that a great business case alone is definitely not enough to guarantee a favorable outcome. Not preparing adequately for a presentation to an angel investor or a venture capital fund is a sure-fire way of guaranteeing failure.The power of a strong, well polished pitch to funders cannot be underestimated and it warrants considerable time and effort to make sure that you hit the mark first off. Here are some tips on what ...
Many Venture Capital (VC) articles, blogs and the like focus on how to secure VC. But not many disclose that the real work starts post-investment.While the investment decision is critical to portfolio performance, VCs spend more than 60% of their time on post-investment activities in order to grow investments for lucrative exits. These activities can be separated into monitoring (protecting the interests of the investor) and value-adding activities (strategic influence, mentorship and access to networks).It should be noted that ...