Splitting a Company Between Co-founders: How to do it the Right way

It is very rare to find startups with only one founder. Most have two or three and some have even more. There is a simple reason why you may need co-founders. You may specialize in technology, but you also need business skills to succeed. Money is another factor. A co-founder can bring these skills in. The most common question here is how do you s...

Why Joint Ventures Fail: Some Mistakes to Avoid With JVs

Some reasons why joint ventures fail might surprise you. Whether they do or not, it is important that you understand the major reasons for JV failures, because only then can you do something to avoid this happening to you. Half of all joint ventures fail, and some estimate the figure to be as high as 70%. Before discussing why, let's first be agree...

VC Investments High at $13 Billion with Technology on a Roll

VC investments are looking good all round at the moment. When we compare the first quarter of 2014 with the second quarter, we can see a 34% increase in cash terms ($9.7 billion to $13 billion) and an increase of 13% in the number of individual deals made (985 to 1,114.) VCs are feeling pretty enthusiastic right about now. At least, that’s what th...

Excessive Seed Capital Can be a Burden for a Startup Company

Excessive seed capital can be almost as bad as none for a startup company. There are a number of reasons for this, some general and others specific. Let's start with some general common-sense arguments against too much startup funding first. Sure, it sounds great if you are looking for $1 million dollars in funding and are offered $10 million. Ma...

Silicon Valley or Silicon Alley: San Francisco or NYC for Startups?

Is it Silicon Valley or Silicon Alley for startups? Should you look to San Francisco or NYC for startup finance? The most famous area for startups is indisputably Silicon Valley – and San Francisco is the biggest city in the area. They no longer come with flowers in their hair - it's now the latest chips and other 'next great things.' It's no coin...

University of California Announces Approval of UC Ventures

The University of California (UC) has announced the approval by its regents of a venture capital fund of $250 million. Not a great deal by today's standards, but enough to fund startups initiated from university-financed research. The proposed scheme will fund commercial opportunities that arise from research carried out in university premises. Th...

Mobile Security Company Lookout Bags $150 Million in Venture Capital Funding

Lookout is a fast growing mobile security company based in San Francisco. In what was the largest funding round for a security company in 2014, the company received an infusion of $150 million from venture funds and investment bankers. It is the largest tranche of investment that the company has got till date, which has brought its total investment...

The Venture Capital Bubble and Pension Fund Investment

Before discussing the projected Venture Capital bubble, let's first have a look at the relationship between private pension investment and VC. Venture capital is what the name suggests: it is a venture. It is invested capital that involves risk. It can pay big and lose big, and because of this it attracts certain types of investor. Pension funds ...

Alternatives to Venture Capital for Business Startup Funding

There are many alternatives to venture capital and angel investors for those that are seeking finance to get their business started up. Venture capital funding is not always the best way to get startup cash. If you pitch your company too early, it might cost you too big a slice of your business. The earlier in its life, the more risk there is in i...

Felicis Ventures Support Founders With New $96 Million Fund

The venture capital company, Felicis Ventures, describes itself as a 'boutique venture fund' that forms relationships with each of its portfolio firms. The company promises to focus upon, and to support, the vision of their founders. For this reason, Felicis Ventures tends always to side with the founders in votes that are put to shareholders. Th...