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Insights



Decoding Diligence

// Anthony P. Lee

August 6, 2014 -

One of the most mystifying parts of venture fundraising is the murky process of due diligence.  There is a ton of advice out there on how to get in and pitch a venture investor, but little on how to manage the ‘boring-sounding’ but critical due diligence process.  Yet this is where make or break happens for many venture deals.  Due diligence is the homework that investors do – tech reviews, reference calls, market checks – to understand the opportunities and risks of an investment.  For some investors, diligence is a structured process.  For others, it’s an informal dating ritual.  Either way, it’s important for entrepreneurs to understand the process and manage it.

 

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Three Common Types of Banking Fraud and Ways to Protect Yourself

// Laura Danni

August 5, 2014 - Bank fraud can be devastating to your personal and business finances.  More and more tools and techniques are used by thieves and scam artists to steal your identity and money, or corrupt your business.  In this three part series, I will discuss a few common banking fraud and security threats, plus some prevention tips suggestions that can help minimize your chances of falling victim to a fraud incident.
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The ABCs of Term Sheets

// David Ehrenberg

August 5, 2014 - For start-ups looking to grow (and which ones aren’t?), getting the first term sheet can be a critical milestone in nurturing a successful business. In this post, I want to take a look at the contents of a standard agreement, variations, and common pitfalls. Stick to the ABCs: Anticipate investors’ concerns and information requirements; Be aware of the pitfalls; Remember that all agreements are Conditional, with the terms subject to change.
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Q2 2014 Venture Fundraising Update

// Wiley Becker

August 5, 2014 -

Both Number of Funds and Capital Raised Continues Upward Trajectory

Capital Continues to be Highly Concentrated with a Small Number of Funds

Number of New Funds Also Increases, but Only Accounts for 8% of Total Capital Raised 

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Entrepreneurs in the Academy: the Role of Entrepreneurship in Engineering Education at Research Universities

// Trevor Loy

July 23, 2014 -

Nearly twenty years ago, Dr. Tom Byers came to Stanford University with an audacious idea.  He believed that entrepreneurship education ought to be a fundamental part of the curriculum for every student in the fields of science, technology, engineering, and mathematics (STEM).  Moreover, he argued that rigorous scholarly research on the entrepreneurial process should be a fundamental part of the broader academic mission of a research university.  To drive these ideas, he founded the Stanford Technology Ventures Program (STVP), and was joined a few years later by STVP Executive Director Tina Seelig.  

 

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Q2 2014 Venture Exits Update

// Wiley Becker

July 23, 2014 - There were 97 US venture backed M&A transactions in Q2 2014 with $3.3B in disclosed deal value according to the Exit Poll report by Thomson Reuters and the NVCA.  Disclosed deal value on a rolling four quarter basis fell by 5% in spite of an 11% increase in the number of deals disclosed.  Consequently, the average M&A deal size fell 14% on a rolling four quarter basis to $174.4MM.  However, disclosed deal value depends highly on the composition of deals disclosed.  According to PitchBook, the median deal size is $150MM through Q2 2014 of 306 venture backed M&A exits globally (PitchBook Data, Inc. 2014).  Additionally, ten M&A exits have closed in 2014 at greater than $500MM valuations, while another 50 have closed in the $100-500MM range.
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