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By VStart, on July 22nd, 2010
We always advise serious entrepreneurs, especially those with big ideas, to make sure an attorney is part of their team from the very start. Not only can they set the company up correctly, they can put standard agreements in place (e.g., stock option, non-disclosure, founder buy-sell, independent contractor, and more). Having such documents can help prevent a multitude of legal issues as the business grows.
Read this article at BusinessWeek to see potential problems for Facebook when a probably “bad” agreement comes back to haunt them when they are really worth something.
Saving money as a startup is usually ingrained in entrepreneurs and spending money on Read More »»
By Laura Good, on July 20th, 2010
Last week, VentureStart graduate Chrometa, a software company based in Sacramento that’s solving the age-old time keeping dilemma for professionals who bill for time and expertise, shared a blog post on lessons learned from their initial product launch and subsequent marketing efforts. Read More »»
By VStart, on July 16th, 2010
SacMix joined our VentureStart program a while ago and are making rapid progress in becoming a known brand in the Sacramento market — if you are hungry for breakfast, brunch, lunch, happy hour, dinner or late night eats, you can always find a great deal at a restaurant close to you at www.sacmix.com.
All startups need to communicate their progress with potential customers, investors, supporters, etc. on a regular basis to keep mind share and accelerate interest. We got such a note from Tim White at SacMix today, and you can read it on Facebook. It is a good example all startups should follow.
By VStart, on April 6th, 2010
Micromidas has just completed its first major round of funding, having raised $3.6 million. The funds will be used to deploy their technology at the pilot scale.
Micromidas, based in West Sacramento, develops and scales environmentally benign biological and chemical processes that produce valuable chemical and material commodities from waste biomass. The first Micromidas application for their technology is scaling a process that converts the carbon in organic wastewater into PHA (polyhydroxyalkanoate), a family of bio-degradable plastics that can be used in lieu of conventional petroleum plastics. Their process generates highly functional bio-plastic while simultaneously reducing the quantity of bio-solids that municipal utilities must pay to treat. Micromidas is Read More »»
By VStart, on March 29th, 2010
Senator Dodd’s current financial reform bill is designed to address financial reform and regulation of the big banks, including the “too big to fail” issue. But it may have unintended consequences by reducing the number of angel investors while at the same time putting regulatory hurdles in place. These hurdles will increase the time it takes (yes, even more!) for entrepreneurs to raise money, and put more bureaucracy in the way further discouraging angel investors.
There is a post on VentureBeat today that has more details and discussion. That post also has some good summary information on the SEC rules that relate to all Read More »»
By VStart, on March 8th, 2010
Want to know how Venture Capitalists think about valuing your startup company? Here is an article by Scott Lenet of DFJ Frontier, who have a Sacramento office. Looks like formulas aren’t used; rather valuation is based on three things:
- Valuation of deals done on comparable companies
- Investors’ experience, and having the opportunity to see many deals, done or not
- Whether the investment return at the time the company exits (e.g., sells to another company, or does an IPO), under the best circumstances, meets the VC firm’s criteria
The article could lead one to think that a 10 times (10x) return is Read More »»
By VStart, on February 9th, 2010
Brett Owens of Chrometa was one of the first entrepreneurs mentored by VentureStart. We recommended “go get customers” rather than trying to raise money from organized investors. He did that and has been growing ever since with an ever-increasing customer base.
Chrometa maintains an excellent blog and today we saw an interesting post on customer support for software companies and its challenges. Take a look and I think you’ll find that Chrometa have met the challenge well with some good thinking. The very fact their blog talks about this is also great marketing. Go Chrometa!
By VStart, on January 30th, 2010
VentureStart gets many Sacramento region web startups applying for our mentoring. Very often we see great ideas and the need to raise money to hire people to code the idea/application. We normally encourage these startups to get a co-founder, or someone who will work for stock, on the team, and then get some traction before even considering raising money from Angel groups or VCs.
Adam Kalsey, the founder of SacStarts and a VentureStart mentor, recently gave advice on this to one VentureStart entrepreneur and then published it on his blog. We quote it here since it is so relevant to web startups.
Read More »»
By VStart, on January 19th, 2010
We saw a great video today that every startup entrepreneur should take a look at. It is an online interview by Jason Calacanis of Brad Feld. Jason is an outspoken entrepreneur who recently created a huge online discussion about entrepreneurs having to pay substantial dollars to present to Angel investors. Brad Feld is an entrepreneur, turned Angel and VC, who is very entrepreneur centric and has a widely read blog (that’s where we found this).
This video is 2 hours long but the first 90 minutes are really worth listening to. It covers these topics:
By VStart, on January 14th, 2010
The Sacramento Angels, together with the Sierra Angels, led a multi-million dollar financing for San Francisco web annotation startup company, Reframe It. They were joined by other regional angel groups and individual angels. You can read the web press release here, and see another report of the financing gathered, in part, from the filing with the SEC of Form D here.
There are a couple of interesting points for entrepreneurs about this financing. First, you can see that to raise this kind of money from Angels, it takes a lead (the lead negotiates the Read More »»
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