Entrepreneurs waste a lot of time soliciting professionally managed venture funds. Venture capitalists operate according to their own largely unwritten rules. In order to play the funding game, you must learn these rules. Below, I’ve listed some of the most-common mistakes. They won’t tell you everything you’ll need to know, but these simple rules should help you understand the VC process and avoid an enormous waste of time, energy, and opportunity.
The following information was originally published by Joseph W. Bartlett, Founder and Chairman of VC Experts. If you are looking for more information on venture capital and private equity please visit www.vcexperts.com and check out our Intelligence Database and Reference Material.
Guest post by Marianna Shapira, Research Manager, IVC Research Center & Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co.
IVC and GKH report:
Israeli private equity deal value down 55%
- Israeli PE fundraising in early 2015 reaches $1.5 billion
- Israeli private equity fund activity down 65% from previous quarter
- Technology sector continues to dominate, with 85% of private equity investments in the Q1/2015
Tel Aviv, Israel, May 11, 2015. In Q1/2015, 14 Israeli private equity deals accounted for $310 million, a drop of 55 percent from $696 million invested by Israeli and foreign private equity investors in Q4/2014. The amount was also 34 percent below the $471 million invested in Q1/2014. (Figure 1)
Joseph W. Bartlett
A lively debate is cascading through the U.S. Capital Markets, triggered by the success of well-heeled investors in public markets labeled “activists.”
Bebchuk vs. Lipton
On the one hand, the applause in favor of activists is led by certain academics, the chief being Professor Lucien Bebchuk, who has reported.
“Empirical studies show that attacks on companies by activist hedge funds benefit, and do not have an adverse effect on, the targets over the five year period following the attack.
“Only anecdotal evidence and claimed real-world experience show that attacks on companies by activist hedge funds have an adverse effect on the targets and other companies that adjust management strategy to void attacks.
“Empirical studies are better than anecdotal evidence and real-world experience.
“Therefore, attacks by activist hedge funds should not be restrained but should be encouraged.”
Guest Authors: Abigail Pickering Bomba, Steven Epstein, Arthur Fleischer, Jr., Peter S. Golden, David B. Hennes, Philip Richter, Robert C. Schwenkel, John E. Sorkin, and Gail Weinstein – Fried, Frank, Harris, Shriver & Jacobson LLP
In In re Family Dollar Stores, Inc. Stockholder Litigation (Dec. 19), the Delaware Court of Chancery continued its trend of increased deference to decisions of independent directors, whether under the business judgment rule or the enhanced scrutiny standard of Revlon. The court concluded that Family Dollar Stores, Inc. (“Family”) did not breach itsRevlon duty to maximize stockholder value when it decided not to negotiate with a competing bidder to seek to improve the terms of the competing bid. The court refused to grant the plaintiffs’ request that the court enjoin the stockholder vote on the proposed merger of Family with Dollar Tree, Inc. (“Tree”) until Family had negotiated in good faith with the competing bidder, Dollar General, Inc. (“Dollar”).