Silicon Valley’s Brain Drain

Posted by on Apr 6, 2014 in Think | 0 comments

Where Have All the Innovators Gone?   Growing up in Silicon Valley was a magical experience. The area was full of innovators who came to this country to build their dreams, which were built on ideas that served a real purpose. From 1939, when Hewlett Packard developed their first audio oscillator in a garage, to 1942 when the greatest minds pooled their resources together to support the defense industry heading into World War II, the brightest minds were attracted to building technology that would change the world.   By 1971, due to the growing number of semiconductor innovations,...

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The 3 Deadly Mistakes of Crowdfunding

Posted by on Mar 31, 2014 in Think | 0 comments

As with any form of monetary solicitation, crowdfunding has its perils and setbacks. Let’s walk through the three deadly mistakes entrepreneurs make with crowdfunding.   Not Explaining Equity   When Oculus was acquired by Facebook for $2 billion, their 9,522 Kickstarter backers were upset to learn they did not get a portion of the proceeds. After all, they invested $2,437,429 to catapult the idea into existence. However, Kickstarter is not authorized to facilitate equity for cash transactions. Unbeknownst to them, all 9,522 backers were simply participating in the pre-sale of a...

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The New Rules of Fund Raising

Posted by on Mar 25, 2014 in Think | 0 comments

The world of fundraising has been turned on its head. A decade ago, entrepreneurs had limited sources for capital — angel investors, venture capital funds, and rich Uncles. Today, entrepreneurs have a plethora of options. AngelList pioneered online funding platforms, which spawned dozens of similar offerings to make meeting angel investors easier. Kickstarter and Indiegogo were the first to make raising pre-sale dollars on your brilliant idea a reality. To date, over $1,000,000,000 has been pledged to Kickstarter projects, with the average project receiving approximately $20,000;...

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4 Steps to Prepare for an IPO

Posted by on Mar 19, 2014 in Think | 0 comments

The first quarter of 2014 has experienced the largest number of IPOs in the past decade, compared to first quarter data from previous years. With the JOBS Act in place and an improved economy, the accelerated pace is not expected to slow down.   If you are building a company today, you may want to consider whether or not an IPO is right for your company. Keep in mind; the average duration from first financing round to IPO is 7 years.   Here is a quick guideline to assist with your planning:   1. Preparation Phase – six to twelve months During this stage, you want to hire a CFO...

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How to Silence Critics and Cultivate Fans

Posted by on Feb 24, 2014 in Think | 0 comments

If you are doing anything worthwhile, you will have critics. Learn to discern between those providing valuable feedback on your product or service and those who simply have too much time on their hands and a sour attitude. When you encounter valuable feedback, determine whether you should implement the suggestions. Andy Grove, former Intel CEO, is candid in explaining one of his major mistakes running Intel was refusing to listen when customers discovered a flaw in the Pentium’s floating point unit. He countered the criticism with a public letter to customers explaining that the part...

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Anatomy of an IPO

Posted by on Feb 1, 2014 in Think | 0 comments

On January 31, 2014, sixteen year-old darling filed for an IPO. To put this event in perspective, PayPal was founded in the same year. While PayPal filed for their $70 million IPO in 2002 and received an acquisition offer of $1.5 billion from eBay later that year, made the decision to remain private. In general, the average company takes 6 to 7 years to reach IPO readiness. Sixteen years is rare. Strike When the Iron is Hot When four year old PayPal filed for an IPO their trailing twelve months revenue was $138 million, while sixteen year old had...

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