InvestorUpdate tries to get VCs and entrepreneurs talking

By John Cook. "What we've got here is failure to communicate." That classic line from Cool Hand Luke also could summarize the interactions of entrepreneurs and investors who don't always see eye to eye. Lisa Hjorten has experienced those problems both as a technology executive and as an angel investor, one of the reasons why she started Informia. more...

AN ENTREPRENEURS' GUIDE TO PUBLIC RESOURCES

By Maureen Farrell. The help you need in a brutal economy. Recession-racked entrepreneurs need all the help they can get. The good news is that there are myriad affordable resources--facilitating everything from raising money to finding talented help--and many are just a few mouse-clicks away. The key is knowing where to look. more...

ANGEL GROUPS SEE CHALLENGES AND OPPORTUNITY IN CURRENT ECONOMY

Kansas City, MO, December 11, 2008 – Angel group leaders report in a recent survey by the Angel Capital Association (ACA) that investments have decreased this year and will decline as well in 2009 compared to 2007 due to the current recession. However, some angel groups have increased their investment activity this year and believe they will make additional investments in 2009 as new opportunities arise from difficult economic conditions. More...

WHY TO START A STARTUP IN A BAD ECONOMY

The economic situation is apparently so grim that some experts fear we may be in for a stretch as bad as the mid seventies.

When Microsoft and Apple were founded.

As those examples suggest, a recession may not be such a bad time to start a startup. I'm not claiming it's a particularly good time either. The truth is more boring: the state of the economy doesn't matter much either way.

If we've learned one thing from funding so many startups, it's that they succeed or fail based on the qualities of the founders. The economy has some effect, certainly, but as a predictor of success it's rounding error compared to the founders. More....

BUILD TRUST BY STAYING STEADY IN ROCKY TIMES

... In our call, I told the folks I was talking to that I think they are generally, along with several of their peers, in a great position in the current environment. When they asked me what I thought they should do differently, or what they should be careful not to do, I strongly suggested that they behave in the way they always have to their clients and VC partners - stay steady, transparent, clear, and direct. Read the entire article...

THE RIGHT NUMBER OF SHAREHOLDERS FOR YOUR COMPANY

...A company should not only provide a business plan—with realistic forecasts—but also engage in periodic disclosures to shareholders. One idea is to issue a quarterly update that covers new products and customers. There should also be disclosures of problems. For example, did the company lose a big customer? Is there a lawsuit? What's being done about such things? Investors will appreciate being kept in the loop and are probably more likely to reinvest in the company if you do so. Read the entire article...