SpeedFuning – Angels Den 21 June 2010 – WinsfordImage credit: https://flic.kr/p/8crjfb
Silicon Valley is changing rapidly in many aspects. Today I want to highlight two related trends in the web/tech industry (non-biotech).
The transformation of high tech, sophisticated companies into something that “just works”.
This scenario is causing the end of the due diligence process for seed investments as there is no longer anything to dig into anymore; you just have to share a few signup numbers, active users and growth rate. You don’t need more than 2 hours!
10 years ago, companies like Google were running on powerful proprietary…
Sand Hill Road is a road in Menlo Park, California, notable for its concentration of venture capital companies. Image credit: https://flic.kr/p/853kZ
Raising venture capital is like adding rocket fuel to your business. For most businesses this is not warranted, creates the wrong incentives and even if it was successful, the dilution resulting from multiple rounds of VC funding means that the founders do not make enough personal money when the business is ultimately sold.
Raise a small round of capital
: $20k – $200k from the three F’s (friends, family and fools)
Use this to build a “good enough” product