We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. We will continue to do more of this.
If you want to watch the show click the image above or this link, but if you want a quick read – here’s a summary (oh, and if you’re wondering – Jon Stewart copied me – not the other way around):
1. @tevye2009, Q: “can you briefly explain why it’s best to get a small valuation when getting investment.”
2. Mike Stern (wasn’t sure which one so leave a comment if it’s you): Q: “is it possible to sell your startup without venture investment if the company has big traction and a large user base?”
3. Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?”
4. Q: “If you have a term sheet on the table how should you leverage with other VCs?”
5: Q: “What’s the best way to get a VC’s attention in an email”
6: @marklanday Q: “Do you make personal angel investments and if so what are your criteria?”
7: Q: “Should I take an investment from a family member?”
In the video we did a lengthy discussion on “the return of enterprise software” talking about companies: Atlassian, Jive Software, KickApps, Yammer and SquareSpace. Most importantly we talked about my good friends at Okta who were financed by Andreesen Horowitz. They have a great user proposition and a phenomenal team. Check ‘em out! I talk about the company in the video. I think this section started around minute 27 but not 100% sure.
We covered the week’s M&A deals: Playdom and Kongregate and why Disney and GameStop made the acquisitions.