I just did a post on OnStartups about how to take a cold call from a venture capitalist.
Few venture backed entrepreneurs understand the concept of “reserves.” Reserves are uninvested capital that the venture capital fund sets aside for future investments in a startup. As Atlas Venture VC Fred Destin explains on his blog, “When investors commit to your company, they will invest some money upfront (say $2M) and allocate reserves for future funding (say $6M). Why ? Well, we know from experience that successful businesses take real capital to get to the finish line.”
Fred has a solid post on what happens to reserves when your company underperforms.
I just got back from a great almost 2 week trip to the Southwest, so haven’t blogged at all. Trying to get back into the work environment – lots to do, so just a quick link to a good post by Rob Go on super-angels and micro-VCs.
I attended Angel Boot Camp yesterday (June 1, 2010) at the Microsoft NERD center. It was a great event with something close to 300 angel investors gathering to discuss how to activate the angel community in Boston. Jon Pierce of the Awesome Foundation organized everything – nicely done Jon! Here are a couple articles/posts on the Boot Camp from the community:
Wade Roush of Xconomy published a great summary of the speakers main topics.
Also, Don Dodge put the key points from his talk up on his blog “The Next Big Thing.”
two more posts inspired by Angel Boot Camp:
Will Herman on Angel investing – why he does it and what he gets out of it, plus some ground rules for success.
Brad Feld on suggestions for angel investors.
And another Angel Boot Camp post:
Gabriel Weinberg was reminded of how much he likes backing hackers and needs to make more investments.
BostInnovation on the first sessions of Angel Boot Camp.
A good piece on how VCs do not want to read a huge word processor prose-style business plan: http://upstartadvisors.wordpress.com/2010/05/19/4-reasons-not-write-a-40-page-business-plan/
The punchline is that the post’s author surveyed 50 VCs and angels and 95% of them did not want to get a big word document!
Congrats to the awesome team at Localytics, a mobile apps analytics provider, who has just raised a solid angel round. This is yet another Boston TechStars company that has gotten funding. Raj and the team are kicking butt over there!