The new trend within tech start-ups is giving offering potential talent equity shares. Giving worthy job candidates a share of equity could be the difference of them picking your company over someone else’s. This also motivates workers, and decreases employee turnover. Equity encourages employees to stay long-term, because they are motivated by the idea of the company enters the public stock-market, or if it is sold in the future. Equity acts as a foreign currency, and the amount depends on timing, need, and expertise. It is also very good for attracting potential advisors to the company. Advisors can triple the value of a company, so the equity would eventually pay for itself. Read More >>
Category Archives: Venture Capital
Angular Ventures wants to “re-imagine” early-seed venture capital in Europe and Israel
Angular Ventures a VC firm founded by former DFJ Esprit partner Gil Dibner targets startup firms in Europe and Israel to provide early-stage funding for deep tech startups. They worked in stealth mode building their portfolio from the past 2 years and have invested in 12 companies ranging from $250,000 to $1.5 million and they aim at making 5-7 new investments every year. Dibner who is the sole partner for Angular Ventures wants to build a sector-focused firm and plans to get rid of the geographical boundaries that hinder early-stage funding, they have made investments of $41million both in Europe and Israel ensuring a US presence in order to support portfolio startups globally. Read More>>
the reason why Hypersonic pitch day is so exciting.
The pitch was held at Doolittle Institute in Niceville, Florida on November 7th,2019. Over 9 startups pitched their products on Hypersonic Flight such as Mach 5 plus capabilities, These included small propulsion units to composite materials that are capable of withstanding very high temperatures and speed. The reason the pitch is so exciting is not just the same day contract of $750,000 that will be awarded to the winner of the pitch by the Airforce but also the opportunity presented by Airforce to the company to partner on the current up-gradation project of their warfighters such as F-35 with Hypersonic grade weapons. The pitch day winner will support the two major Air Force boost-glide hypersonic prototype efforts now underway: the Hypersonic Conventional Strike Weapon and the Air-Launched Rapid Response Weapon (AARW). Read More>>
Bias is abundant in the world of venture capitalists.
Recent studies based on data acquired from the USA suggests that VC’s are biased towards founders of same ethnicity irrespective of their financial behaviour, the male-dominated VC sector and the lingering gender gap further justifies the tendency of VC’s towards homophily. However, this does not mean we eliminate rationality completely because when the study was further extended to understand the 622 deals within India’s rapidly maturing VC industry. It was understood that the VC’s did not completely base their decision on the social attributes such as region, caste or language rather on the future cash flows from the deal. using measures such as the internal rate of return (IRR) as a metric the researchers could identify the number of successful deals out of the ones that were being studied. Read More>>
How gender segregation affects the Entrepreneurial capital market
Lori Greiner, a millionaire businesswoman on Shark Tank advise the woman entrepreneurs to consider themselves as a person in business equal to anyone else. However, the market for entrepreneurial financing is not really gender-neutral hence woman-run startups struggle to secure funding in the initial stages compared to their male counterparts. The questions asked during the sales pitch and the language used to describe an entrepreneur shows the discrimination involved, further venture capitalists tend to associate more with similar others especially of the same gender thus confirming the gender stereotype. The downside of this gender segregation is that it will lead to the creation of Pink Silos reserved for female-run startups and investors and thus separating them from the rest. Read More>>
Why startups with Gender-inclusive founding teams are profitable?
The Kauffman Fellows Research Center (KFRC) analyzed US venture-backed startup data from 2001 and it was observed that teams that had at least one lady in the founding team of startup had better chances of getting bigger capital investments. This claim is further supported by the fact that the woman founded companies have increased from 4% to 21.6% in the last two decades, although the progress is painfully slow the trend seems to show steady growth. Thus startups should capitalize on this advantage while choosing their founding partners. Read More>>
Money Talks, But Mentorship Matters More
The pitchbook data says US-based startups have raised $66 billion in venture funding in the first quarter of 2019 putting the market on track to surpass the $100billion mark by the end of 2019. However, there has been a considerable decline in the VC acquisition in Angel and seed-stage rounds, thus raising the question for all startups as to what is the right time to get investors and how to pick the right investors or partners. here are some perspectives shared by some leading early-stage venture capitalists that will help you have a better insight about VCs.Read More>>
New Startup-Focused Bank Gets More than $100 Million From Investors
A New York based bank opened up for in May 2019, after raising over $100 Million from investors. Indeed, Grasshopper Bancrop Inc entered the business world targetting startups. It is an excpetional investment as new banks are rare in the US because of low interests rate and domincane of giant lenders. Grasshopper is known as a venture bank, meankng that, it typically will take deposits from startups that have raised money from investors and firms. This bank aims to lend more established companies investing into startups. But, CEO Judit erwin believes that many barriers are falling down for new banking companies. Read More >>
Five Lessons from a Venture Capitalist with a Long-Term Focus
As more and more businesses and individuals look to invest in the next big idea that can be translated into a unicorn company with huge scale-ability and profit potential, the startup market has become saturated with investors. Often these investors follow red herring companies to limited success and limited returns. Gopi Rangan, adjunct professor of Entrepreneurship for INSEAD Business School, breaks down the logic that has led his friend and mentor, Oren Zeev, to success as a venture capitalist. These are the five tried and true rules for any venture capitalist to live by. Read more>>
AirAsia Targets Startups With New Venture Capital Fund
The latest in a number of airlines that are seeking to diversify their portfolios, AirAsia has started a fund called RedBeat Capital to provide seed money to burgeoning businesses. Sean O’Neal of Skift.com describes how the company is following the examples of JetBlue Technology Ventures and the unsuccessful Qantas AVRO Accelerator Program in its bifurcation of its focus into new and promising businesses. Whether the motivation for this venture capital fund comes from a desire to boost revenue, boost innovation within their cultures, or to insulate themselves from the uncertainties of the market through diversification, it is an undisputedly interesting and savvy move on the part of the Asian budget airline. Read more>>
InnoTrepTech 