The amount of capital in the marketplace today has reached extraordinary levels. However, just because there’s new-found money more readily available for entrepreneurs doesn’t mean that VC firms are handing it out like candy. Start-ups come, and start-ups go. In fact, more than 50 percent of companies receiving VC investments still fail.
Statistics like this allow VC firms to be particular about where they invest their money and compel them to do everything in their power to ensure the right fit when it comes to their investments―for both sides.
In the final installment of our three-part podcast series called “Angel and Venture Capital Investing,” show hosts Evelyn Ashley and John Monahon along with Mike Siavage of Trusted Counsel speak with Brad Feld, an American entrepreneur, author, blogger, and co-founder of the venture capital firm Foundry Group in Boulder, Colo. Brad has been an early-stage investor and entrepreneur for more than 25 years. He began financing technology startups in the early 1990s first as an angel, and later as an institutional investor. He was an early investor in Zynga, MakerBot, and Fitbit. Brad has also directed his knowledge and intent to make entrepreneurs smarter by authoring and coauthoring several books about entrepreneurship, venture capital, and startups. His most recent book is his third edition of “Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.”
“An important part of growing, building and evolving companies involves doing it in a way that has, maybe to be cliché about it, a lot of emotional IQ,” said Brad. “Real engagement and real involvement with the people, and a view that you're working with each other as partners rather than antagonists is an important part of how we think about working with companies. Our strategy isn’t about investing in every great company. Instead, we want to pick 10 companies a year we think could be great.”
During the course of the podcast, entrepreneurs will learn about the:
- Importance of the 60-second pitch
- Top mistakes business founders make when pitching for capital
- Benefits of using a professional advisor and legal team well versed in VC deals
- How to prepare for and what to expect in your first meeting with a VC firm
- Impact of obsession vs. passion
Learn about the other nuances involved with pitching VC firms by streaming the conversation in its entirety in the player below, or download it to your mobile device via iTunes. Don’t miss a single episode, subscribe to our show “In Process Podcast” on iTunes to receive this episode as well as future episodes to your smartphone.