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What is the process of a (new) VC firm raising its first fund?

There are some great answers here already (and there’s no way I’m going to try to top Terrence Yang‘s magnum opus :-), so I will simply point you to a first-hand account of the challenges of VC fund-raising by Alan Patricof, the founder of Greycroft Partners. (Of course, this may not be quite a similar case to yours, as Alan […]
David S. Rose
David S. Rose , Founder and CEO , GUST INC.
23 Mar 2014

How do US venture capital firms view an entrepreneur who decides to go for funding to the US with a business plan, and then will need a visa?

The disappointing fact is that this is a highly unlikely scenario, for several reasons. The most important is that venture capital firms simply do not fund business plans. They fund companies. There are several excellent explanations why this is the case, but the bottom line is that VCs are able to fund only one out of every 400 companies who […]
David S. Rose
David S. Rose , Founder and CEO , GUST INC.
20 Mar 2014

What does it feel like to invest in a failed startup as an angel investor?

It’s not great…but it IS part of the business. If you are an angel investor, the only way to do it is to take things very seriously. If you take angel investing seriously, you should aim to develop a portfolio of at least 30-40 investments over 5-10 years of active investing. If you invest in 40 startups, […]
David S. Rose
David S. Rose , Founder and CEO , GUST INC.
16 Mar 2014

Founder’s Stock Is Gold, If You Know The Rules

In reality, so-called “Founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. But that’s only the beginning of the story. These shares are allocated and committed, but not really issued and owned […]
Martin Zwilling
Martin Zwilling , Founder and CEO , Startup Professionals
16 Mar 2014

What are the average terms for Angel Investors’ seed fundings?

There is no average, because every company and situation is different. But as a general rule of thumb, the investors in each round of financing will get somewhere between 15% and 35% of the equity in the company, and the total amount raised in each round should be enough to get the company to a significant […]
David S. Rose
David S. Rose , Founder and CEO , GUST INC.
13 Mar 2014
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