April 22, 2009

Free Online Term Sheet Generator

If I didn’t see it with my own eyes, I wouldn’t believe it, but Wilson, Sonsini, Goodrich, and Rosati, one of Silicon Valley’s dominant law firms (as in Apple, HP, etc), has created a free, online term sheet generator. This is the site’s description of the tool:

This tool will generate a venture financing term sheet based on your responses to an online questionnaire. It also has an informational component, with basic tutorials and annotations on financing terms. This term sheet generator is a modified version of a tool that we use internally, which comprises one part of a suite of document automation tools that we use to generate start-up and venture financing-related documents.

If you are raising venture capital, this is a great tool for you. I would like to know the name of the intern or first-year associate who came up with this idea. This is as amazing as AP going after the guy who created the Obama poster only in reverse.

December 24, 2008

Santa's Perfect Pitch

Over at the American Express OPEN blog, I posted "Santa's Perfect Pitch." This is the kind of deal that venture capitalists are looking for these days. :-) Merry Christmas to you!

December 10, 2008

The No-Bull-Shiitake Investor Wishlist

Over at the American Express OPEN blog, I posted an explanation of what investors want in a deal. Check out "The No-Bull-Shiitake Investor Wishlist." For more coverage of venture capital news, you can also click here.

September 09, 2008

How About a Plan B for Fund Raising?

Over at the American Express Open Forum blog, I've posted a description of "Plan B" for fund raising. Plan B is 180 degrees from the usual venture-capital path. Check it out by clicking here. If you go with the usual Plan A, don't say I didn't warn you.

September 04, 2008

The Art of Raising Venture Capital

These videos are my recent attempt to explain the art of raising venture capital. They are part of the Montgomery & Hansen online learning site and conference. For example, to learn about financing agreements and the term-sheet process, click here.

Click on these links for up-to-date information about venture capital, startups, and pitching.

August 13, 2008

How to Frame a Brain

Is your mantra, mission, and/or elevator pitch failing? Startups often have the problem that nobody can understand them. If this is you, George Lakoff may be your fix. Lakoff is a cognitive linguist who focuses on "the last smile" between message and recognition in brain. The Chronicle has a brief history of Lakoff's career (thanks to Mindhacks.com for the link) that is must reading for founders trying to change the world...but who can't understand why the world won't listen.

Lakoff's main focus for the past decade has been to pin down how the Republican Party has so consistently out maneuvered the Democratic Party...verbally. In translating linguistics into plain English politicians can understand, Lakoff has laid a banquet before startups with new-to-the-world technologies. If your customers don't have the mental receptors in order to receive your message, what do you do? Lakoff tells you in Don't Think of an Elephant and his other works explained in this article.

The bottom line of Lakoff is that you have to focus on two things: frames and arguments. Frames are examples, stories, and analytical models that allow problems to be set up for an argument. And the argument is what you do with all the objects in your frame. Finding frames is a process of pure brain pain. You search, find, try, refine, and repeat in a brute force exercise to find ways for your audience to understand you. In Don't Think of an Elephant Lakoff describes the funded think tanks that republicans use to generate a steady stream of white papers trying out ways of communicating that will trick Americans into voting regardless of their self interest.

Arguing too, is pain for the brain. Arguments happen, then they get simplified, then they grow in layers, then they consolidate like glaciers to an essence. You don't make just one trip to the venture capitalist and walk away with money. You wear them down. To do this best, you need to invest heavily and brain painfully to make people understand your product and what it does for your customers. And you need to sharpen your argument over time. Lakoff might say that venture capitalists are more likely to invest in improvements to your pitch, than in your first product.

By Bill Meade.

August 05, 2008

News Flash: "Young VC Adds Value"

Picture 12.jpg

You know how I feel about young venture capitalists, right? If you don't, read this. Having written this, I still have an open mind, and this morning young Matt Winn told me about a tool he created called the VCDB (venture capital database).

Indeed, you should check out this tool because it's quite useful. You can enter "bio keywords" and find venture capitalists. You can also enter locations, and the tool shows you venture capitalists in the area. Matt explains the tool here.

I love when people prove me wrong. Also, if you want to follow venture capital news, click here.

May 30, 2008

How to Pickup a Venture Capitalist

pickup.jpg

I wrote a list of pickup/opening lines to use on venture capitalists for the Sun Microsystems small business blog. Please check it out here. The post lists the most common lines and what a venture capitalist would think when you utter such drivel.

For total venture capital news coverage, try Venturecapital.alltop.com.

February 04, 2008

Angel Capital Panel


Picture 1.jpg

The Industry Standard is back, and I wrote a post for it based on a panel I moderated last Friday. The topic of the panel angel investing, and a more qualified panel doesn't exist: Andy Bechtolsheim (the first investor in Google), Ron Conway, and Ian Sobieski. If you're interested in angel investors, you need to watch it. If nothing else, you'll learn why angel capital is like HotorNot and venture capital is like eHarmony.

September 13, 2007

Disrupt-Then-Reframe Selling: How to Close a VC?

iStock_000003294158XSmall.jpg

Have you heard of the concept called “disrupt-then-reframe”? The theory is that you introduce a non-sequitur or unexpected element into your pitch and then immediately inject a call-to-action. The disruption theoretically neutralizes critical thinking and makes a person more susceptible to agree.

This concept is the result of a study by Barbara Davis and Prof. Eric Knowles in which they sold note cards door-to-door for a charity. When they told people that the cards were eight for $3.00, they had a 40% success rate. When they told people that the price was eight for three-hundred pennies and then said, “which is a bargain,” 80% of the people bought cards.

Give it a shot and let me know if the concept works for you. I suspect that venture capitalists will be very susceptible because they have attention deficits anyway. Here’s how it would work. Suppose that you’re negotiating an investment; just say: “Our pre-money valuation is 500,000,000 pennies which is a bargain for a Web 2.0 company.”

PS, did I tell you that you can read the Truemors web site for zero pennies which is a bargain? Just click here. :-)

My Photo

Contact Me

  • bar.gif


VisualCV


Search this blog

Alltop

  • Alltop, confirmation that I kick ass

Advertising

Feed and Leads

Categories

Alignment of Interests

  • Alltop
    Stay on top of all the topics.
  • BizShark Business Search
    Search for information about businesses and websites
  • Doba
    Drop ship products for ecommerce sales.
  • FeedHub
    Reduce the clutter in RSS feeds to yield relevant posts.
  • Garage Technology Ventures
    Raise venture capital for your tech company.
  • Jajah
    Make VOIP calls easily and cheaply.
  • NowPublic
    Read news stories powered by the public.
  • Peerspin
    Pimp your MySpace pages.
  • Posterous
    Create and write blogs via email.
  • Slideshare
    Share PowerPoint and Keynote slides including audio.
  • SocialToo
    Engage people at social media sites like Twitter.
  • Spokeo People Search
    Track people across over forty social websites.
  • TicketLeap
    Sell and manage online ticket sales for events.
  • Triggit
    Drag and drop text to place ads on your web pages.
  • Tripwire
    Configure, audit, and control enterprise workstations.
  • Tynt
    Trace who's using your website content.
  • uStream
    Stream video live.
  • Visible Measures
    Monitor how people interact with online video.

Copyright Notice

  • ©2006-2009 Guy Kawasaki
    All Rights Reserved

Optimization

  • quick sprout