Tough Times Don’t Have to Mean Tough Terms: Leveraging Financial and Cap Table Modeling in VC Negotiations
| |

Tough Times Don’t Have to Mean Tough Terms: Leveraging Financial and Cap Table Modeling in VC Negotiations

Introduction But they say it so well. This post is not an isolated example – talk to any “early stage” venture fund in an area without a scarce resource (say, a region like Los Angeles, or an “unsexy” investing theme) and you’ll hear the complaints. More so, read the comments on any popular VC blogger’s…

Better Digital Banking Through Data Analytics
| |

Better Digital Banking Through Data Analytics

Introduction Going forward, the increasing data penetration and acceptance of digital platforms among diverse economic classes make it an emerging channel for customer profiling. Customer profiling would require studying customer preferences and lifestyle of individuals, which can be derived from data created through mobile phones, data contributed by social media, along with transaction history, demography,…

Startup Financing for Founders: Your Companion Checklist
| |

Startup Financing for Founders: Your Companion Checklist

Introduction Companies are realizing that small startups in a remote environment can come up with disruptive innovation. Startups typically aspire to “make” not “buy” a number of aspects of venture development, even if the solution is uncertain or risky to create. Moreover, a critical startup development problem is both inducing a broader audience outside the…

Aligned for Success: A Guide to What Investors Look for in a Startup
| |

Aligned for Success: A Guide to What Investors Look for in a Startup

Furthermore, what investors look for might surprise start-up owners. You do not have to do market research, hire an advertising team, or talk with potential clients to be successful at finding financing if you have more than the 3Fs—friends, family, and fools investing. This book gives a perspective on what businesses got financing and why….

Why Profitability Trumps Growth: The Enduring Relevance of Unit Economics
| |

Why Profitability Trumps Growth: The Enduring Relevance of Unit Economics

1. Introduction In his response (and in many others on his blog), Bill reiterates the importance of unit economics. Bill and I are in good company here with everyone from Warren Buffet to Anna Karenina’s non-famous opening lines of novels giving us comfort (the famous quote is in the middle). In fact, Bill and I…

Corporate Venture Capital: Assessing its Role as a Strategic Growth Opportunity
| |

Corporate Venture Capital: Assessing its Role as a Strategic Growth Opportunity

Fred Wilson, famed venture capitalist of Union Square Ventures, once said that he thought corporate venture capital was the “devil.” “[Corporate investing] is dumb. I think corporations should buy companies. Investing in companies makes no sense. Don’t waste your money being a minority investor in something you don’t control. You’re a corporation! You want the…

How to Prepare a Cash Flow Statement Model That Actually Balances
| |

How to Prepare a Cash Flow Statement Model That Actually Balances

Whether I’m looking at acquisition opportunities at HoriZen Capital or building best practices models, I often see cash flow statements that don’t reconcile with the balance sheet. The most common reason is the wide range of data sources used by the company: the sales teams’ tracking software, CapEx files maintained by the CFO, and inventory reporting metrics from…