November 14, 2013 - In my day-to-day role helping to run the Square Roots program for Square 1 Bank, one of my most important responsibilities is to be a connector. Often, this manifests itself in introductions between a company and a potential investor or service providers. From time-to-time, I’ll meet a job seeker who wants to break into the startup world. I usually ask a series of questions to understand exactly what the person wants to do, and then attempt some mental matching with companies that may be a fit for their profile and talents.
October 30, 2013 - The Federal Government has reopened. National Parks and monuments are available for tourists to visit. The panda-cam at the National Zoo has been turned back on. Whew. So perhaps the government shutdown and debt ceiling debate were sensationalized by the politicians, and the media-frenzy feeding the politicians didn’t help.
October 29, 2013 - There were 1,005 venture capital deals in the US in Q3 2013 totaling $7.8B. This continued a quarter on quarter increase in both deals and dollars and also represents a 2% increase in number of deals and a 4% increase in dollars raised on a rolling four quarters basis. 346 of the deals in Q3 2013 were first time financings, which totaled $1.3B. This represents an increase in both deals and dollars over Q2, but in the same proportion to total deals and dollars raised, at 34% and 16% respectively.
October 29, 2013 - It's no secret that building a company is hard work. While entrepreneurial ventures can be full of excitement and energizing in many respects, they are still work and run the risk that the strain could burn out employees. Well known (and well funded!) startups will experiment with various perks like ping pong tables, catered lunches and flexible work hours in an attempt to keep employees happy while providing attachments above and beyond a paycheck. Happy teams lead to happy customers!
October 16, 2013 - In my prior post, I gave an overview of the theory behind financial covenants in venture debt deals and some basic examples of the types of covenants used by lenders. With this post, we will take a deeper look at what happens when a covenant is violated, and the pros and cons of venture debt deals with covenants.
October 7, 2013 - In Q3 2013, 56 US venture capital funds raised $4.1B, which represents a slight 2% decline in the number of funds and a 7% fall in the amount of capital raised on a rolling four quarter basis. Consequently, average fund size is also down 5% to $76MM.