We see it over and over again: Israeli entrepreneurs coming back from a fundraising roadshow in the Valley excited and hopeful. They met some of the top investors in the world during their visit and generally heard positive feedback. For the most part, the investors they met seemed genuinely interested and indicated that they want… Continue reading The stark difference between US and Israeli VCs
One of the best ways for a public company to increase its share price is by beating quarterly earnings estimates and raising full year guidance. This is what is routinely referred to as the “beat and raise.” In simple English, beat-and-raise means that the past was better than expected and the future is going to… Continue reading The startup’s version of “Beat and Raise”
Deciding when to raise money and how much to raise are among the most crucial decisions a startup CEO makes. The “textbook answer” for the questions above is to raise enough capital for the company to achieve an accretive milestone. After hitting that milestone the company can go out again and raise more money at a… Continue reading Can revenue reduce your startup’s value?
Too often founders of early stage companies build a three year revenue plan which gets the company to profitability. These are companies that are barely generating revenue yet somehow decided to focus on profitability. While in theory, getting to profitability is an important milestone for a company, it typically comes at a much later stage in the company’s… Continue reading The one metric early stage startups should ignore
Investment trends are defined by a few significant events that become engraved in investors’ minds. These can be huge positive outcomes such as Facebook’s acquisition of WhatsApp for $22B, Twitter’s post IPO surge to $40B market cap, or Emergence Capital 300-fold return on a $4M investment in Veeva System. Such positive events generate momentum for… Continue reading LinkedIn’s crash is a defining moment for VCs
Investing in startups is not an easy job. As an investor, you are not only betting on a specific startup and team, but often on a market that doesn’t yet exist. Even the best team in the world is doomed to fail if it undertakes the wrong market. The opposite is not always true. One… Continue reading The biggest mistake VC make
A lot has been written on how to raise capital for your startup. I have also touched it in the past with when you should start meeting investors and how to improve your investment pitch. However, I want to talk about a few mistakes entrepreneurs sometime make which look REALLY bad from an investor standpoint. These are the kind of things that just… Continue reading 7 rookie mistakes to avoid in your pitch