Joseph W. Bartlett, Counsel, Reitler Kailas & Rosenblatt LLC
Herewith a Case Study of a transaction involving a Series A round of investment in Newco, Inc., a hip, emerging growth “gazelle” as David Birch liked to call U.S. companies running hard on the trip, as I put it, “from the embryo to the IPO.”
Guest post by Barry Moltz, Entrepreneur and Consultant
Sometimes I find that the company’s founder is so far ‘outside the box’ that they ‘stretch the envelope.’ As an angel investor, I review more than 500 business plans each year. Unfortunately, many are so riddled with economy lingo, business jargon and clichés, that they do not communicate any real business value. In my opinion, terminology, such as disintermediation, sweet spot, ASP, best of breed, and win-win should be outlawed for the next 100 years.
Joseph W. Bartlett, Council, Reitler Kailas & Rosenblatt LLC
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.