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.
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.
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.
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.
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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