DISQUS

David Semeria · 9 months ago

Great post Furqan.

It dovetails nicely with the theory that only really compelling businesses will attract initial/additional funding in this environment.

John · 9 months ago

Thanks. Any thoughts on the impact of the Economic Recovery Plan, particularly the investor incentives?

A nice final piece of great news is that incentives for investing in small businesses are also part of the recovery package. It used to be that an individual could exclude 50% of capital gains, under certain conditions, on profits from the sale of stock after owning for 5 years. Under the stimulus package, this exclusion is increased to 75% and so those of you who are family members, angel investors or venture capitalists with monies to invest would find it more advantageous to locate promising ventures to put your money into and reap the rewards!

http://www.buzgate.org/8.0/ny/press_recover.html (thank to Peter Chislett for the link)

Seems like would encourage investors with 5 year horizon.

C · 9 months ago

Good blog. I think your segmentation of VCs into early, growth, and late, is a bit simplistic. Most large generalist VC "early stage" funds do seed, series A, B, and sometimes C investments, depending on the specific circumstances. Particularly in this environment, Series B and C investments can look pretty attractive, because they are being priced at Series A valuations. Bottom line is the good firms with good people and historically good returns will probably survive, and the bad ones won't, independent of stage. LPs are going to look at returns and cut out the bad apples. They don't care as much about stage.

mshahnoora · 2 months ago

Hi,
This is a very informative post, providing valuable insight for entrepreneurs that have a product/service, but wondering when profitability is in sight. But how do you think intelligent, technology-based entrepreneurs should bring their product to market: Bank loans, borrow from friends, etc...?