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In the world of venture capital (VC), ideas are plentiful but fundable businesses are hard to find. Despite the perception, VCs do not fund ideas alone, no matter how solid passionate entrepreneurs believe they are. To negate risk, VCs evaluate proposals based on several characteristics, often in-line with their specific funding mandate, to bridge the huge divide between a cool idea and a fundable business.Differentiated
VC funds are inundated with requests for capital to get start-up businesses to the next critical ...
While I was living in Silicon Valley for a couple of months earlier this year, I had the opportunity to see how a number of the startup accelerators over there function, and also to speak to a number of tech entrepreneurs that passed through their programmes.The formal definition of an accelerator is a "programme designed to assist startup businesses with financial and/or operational resources that will increase their chance of growth and success".After seeing them for myself, my definition is ...
"The average time that a Venture Capitalist spends analysing a business plan is 22 seconds" – Speaker at the 26th Venture Capital Institute, Atlanta, 2000.Since this realisation more than 10 years ago I've often wondered whether it was entirely fair towards entrepreneurs who spend significant time and resources to develop a comprehensive business plan. But top tier venture capitalists (VC's) deal with hundreds of business plans a year, and a decision on whether to take the proposal to the next ...
Somewhat lost in the news because of Google's acquisition of Motorola, Buddy Media, a New York startup raised US$54-million at a US$500-million valuation.Buddy Media helps corporations set up and run their presence on a wide range of social networks.From Buddy Media:We are in the midst of a massive shift online from a search and intent-based world to a social, people-based world. The last three years were about the consumer side of social platforms, as we watched Facebook, Zynga and Twitter ...
Raising funding for an early-stage venture is always difficult. There is no bottled recipe for success, but even if you have a great concept that is scalable combined with a passionate team that can execute the growth strategy, you still need to communicate this in a multifaceted investor’s pitch.Most entrepreneurs can give a fair account of the top line business strategic growth path, dive into the complexities of the product or service offering, put together a good industry analysis, name ...
Regardless of whether it’s an angel investor or venture capitalist you are approaching, every funder will narrow things down to one major question: “Who is your target market and who are you competing against?”This is the warning of Alex Fraser, who drives home the fact that preparing a market and competitor analysis is a vital part of any business plan or pitch deck.Fraser is based at at InvenFin, an early stage capital company. She says she often receives ...