There is a belief among some investors that “the timeline, order of operations, and mechanisms of going public need to change” which is why Direct Listings are needed. You see the rules for IPOs were established about a century ago and have not kept pace with many of the trends and changes in today’s capital markets. (Bullshittake!!!). Ice cream has been made the same way for centuries.
Not a week goes by when someone doesn’t ask me about stock option grants to founders and employees of their startup. The questions range from how much to give to founders and when to vesting schedules and everything in between. This week the following blog post showed up in my Medium thread.
I field a lot of inquiries from founders wanting advice and assistance with their pitch. An awful amount of preparation and perspiration goes in to creating a presentation that most of the time no one ever gets completely through. Strategy development through PowerPoint iteration is a terrible way to attempt to build a business. Your time would be better spent on developing and testing the business model.
The following is part of a four part series on tips for getting from Seed to Series A.
Much has been written about the Seed to Series A trough or valley of death. It is no doubt more challenging to raise a Series A than it is to raise a Seed. Institutional investors (venture capitalists) require much more proof that you have a great team with a good idea that is targeted at a potentially enormous market opportunity.
The Sunday New York Times featured an article about how entrepreneurs are resisting turning to venture capitalist for money. As you can imagine the article has generated a lot of buzz and the usual “piling on” that follows a media attack on a group, especially a wealthy group. The article describes how venture capital is bad for some startups and attempts to provide some reasons for this.