(clickbait) Founders, don’t trust your venture capitalists… or…

trustJosh Felser, formerly of Spinner (an internet radio and entertainment website bought by AOL), shares some stories about his startup and funding. To be sure, he mentions the terrorist tactics used by some investors.

If you don’t know what a “term sheet” is, you should learn.

If you don’t know what a “corporate structure” is, learn.

https://techcrunch.com/2017/01/19/founders-dont-trust-your-venture-capitalists-or-should-you/

Sequoia Confirms Existence of “Stealth” Scout Program. Who’s Next?

robber-303444On May 4 of 2012 Pando reports:

The structure isn’t exactly like a standard limited partner arrangement, because the bulk of the returns go to the scout, not the firm. Exactly what benefit Sequoia gets out of it remains unclear. I asked all three scouts if their deals would have likely pitched Sequoia eventually anyway, and most of them said yes. Sequoia doesn’t get any warrants or right of first refusal or equity in the company.

It’s been over 3 years since this was report. I’m amazed most entrepreneurs don’t know this.

John Stroppa’s Alternate Funding Strategies

On July 21, 2014, John and about a dozen persons meet in the classroom at HackerDojo. Starting promptly at 6pm, a few people were late. None-the-less, John pressed through giving his experience – drawn from his successes and exits in the video game industry in Vancouver, BC, Canada.

John outlined six (6) methods for capital besides bootstrapping or venture (or seed) capital, in short — without giving up equity.

    1. Strategic / Ecosystem or platform monopsony – in which a player needs a product or service by which they can continue to enhance their market position. An example is a search engine for walled gardens. A9, for example, started as a generic search engine, now it’s largest customer and investor is Amazon.
    2. Sponsored – sponsoring is a great to jump start a business. In this model another company or organization would pay to use your product for a demo or publicity event. For example, Coca-Cola might use your telepresence avatars for an international youth event.
    3. Factored – With this method, it does feel a bit like a pre-sale, but infact the money is fronted on expected sales. Also other terms are given, such as early exclusive sale or access to the product for a given period. An example would be a retailer that expects to sell other products with the early release of a game. As such, money fronted is drawn from the pre-sale until the money is “factored” back. You could also see it as a loan, payed back from sales.
    4. Philanthropic – An example of this is a large event being sponsored by a philanthropic organization that decides it needs some sort of unique service, such as an online game.
    5. OEM/White label – create a generic product for an industry. A good idea is doing want ads for electronic magazines, or monthlies that have turned to the web; such as trade magazines.
    6. Crowdfunding/Crowdsourcingkickstarter, indiegogo, fundable

Google: Crowdfunding

Crowdfunding.com lists – gofundme.com, kickstarter, indiegogo, youcaring.com, causes, giveforward, crowdrise, fundly, firstgiving, fundrazr

Forbes.com Top 10 Crowd funding websites kickerstarter, indiegogo, crowdfunder, rockethub, crowdrise, somolend, appbacker, invested.in, quirky (AngleList is not a crowdfunding website contrary to what the article implies.)

Angle Investors Lists

blue_angelsThe first three (3) links are based on this cbinsights report:
https://www.cbinsights.com/blog/top-angel-investors

Biz Journals (SJ Mercury) writes about the report:

Here are CB Insights’ top 20, which is 1 percent of the 2,000 angels it studied. One caveat is that the study only looked at a relatively small slice of the actual number of people in the U.S. who have made angel investments, which is estimated to be about 756,000.

 

20 Most Active Angel Investors
http://www.forbes.com/sites/tanyaprive/2013/12/16/20-most-active-angel-investors/
Marc Benioff, Ashton Kutcher, Jack Dorsey – see who made the top 20 Angels list
http://www.bizjournals.com/sanjose/news/2014/06/25/marc-benioff-ashton-kutcher-jack-dorsey-see-who.html?page=all
Celebrities among the top 20 angel investors
http://www.bizjournals.com/sanjose/gallery/48411?r=http%3A%2F%2Fwww.bizjournals.com%2Fsanjose%2Fnews%2F2014%2F06%2F25%2Fmarc-benioff-ashton-kutcher-jack-dorsey-see-who.html

  1. Naval Ravikant
  2. Tim Ferriss
  3. Esther Dyson
  4. Ashton Kutcher
  5. Marc Benioff
  6. Jack Dorsey
Need to Find Angel Investors? Start With this A to Z List
http://www.udemy.com/blog/top-angel-investors/

  • 55 Angels listed
The 50 Early Stage Investors In Silicon Valley You Need To Know
http://www.businessinsider.com/sv-angel-50-2012-7
  1. Marc Andreessen
  2. Mike Arrington
  3. Marc Benioff
  4. Michael Birch
  5. Jim Breyer
  6. Paul Buchheit
  7. Steven Chen
  8. Jeff Clavier
  9. Ron Conway
  10. Adam D’Angelo
  11. Jack Dorsey
  12. Tim Draper
  13. Josh Elman
  14. Paul Graham
  15. Seth Goldstein
  16. Georges Harik
  17. Kevin Hartz
  18. Rob Hayes
  19. Reid Hoffman
  20. James Hong
  21. Ben Horowitz
  22. Charles Hudson
  23. Mitch Kapor
  24. Jawed Karim
  25. Manu Kumar
  26. David Lee
  27. Max Levchin
  28. Ben Ling
  29. Joe Lonsdale
  30. Mike Maples
  31. Marissa Mayer
  32. Dave McClure
  33. Dave Morin
  34. Chamath Palihapitiya
  35. Sean Parker
  36. Mark Pincus
  37. Shervin Pishevar
  38. Keith Rabois
  39. Naval Ravikant
  40. Kevin Rose
  41. Chris Sacca
  42. David Sacks
  43. Joshua Schachter
  44. Eric Schmidt
  45. Aydin Senkut
  46. Tina Sharkey
  47. Biz Stone
  48. Jeremy Stoppelman
  49. Garry Tan
  50. Peter Thiel
  51. Evan Williams

Blue_Angels_NAS_Jacksonville_Air_Show_2717

The Top 20 Angel Investors

angel_devil500.co with cbinsights.com narrowed down a host variables. They open with:

We analyzed over 2000 angel investors on factors such as network strength, rate of follow-on investment, # of exits, brand and more.

Then they create three (3) lists.

  1. Top angel investors by Network Centrality
  2. Top angel investors by Follow-On Rate
  3. Top angel investors by Investor Mosaic
  • Network Centrality literally means how many people they know and how well are they connected.
  • Follow-On Rate means how well they were able to get additional funding.
  • Investor Mosaic includes when they entered and how they exited. In other words, how go could they guess on a startup.

The links below to Angels open to Wikipedia, go to the blog article to get more information.

The top five (5) for each list

Network Centrality

  1. Alexis Ohanian
  2. Max Levchin
  3. Garry Tan
  4. Marc Benioff
  5. David Tisch

Follow-On Rate

  1. Bobby Yazdani
  2. Larry Augustin
  3. Matt Coffin
  4. Ashton Kutcher – yes the actor
  5. Gil Penchina

Investor Mosaic

  1. Naval Ravikant
  2. Joshua Schachter
  3. Paul Buchheit
  4. Jason Calacanis
  5. David Tisch
The Top 20 Angel Investors
http://500.co/2014/06/20/the-other-1-ranking-the-top-20-angel-investors/
MOVED without redirect to
http://500.co/the-other-1-ranking-the-top-20-angel-investors/
500.co moved the article again; here it is as cbinsights:
https://www.cbinsights.com/blog/top-angel-investors

 

Steve Jobs’ Advice for Entrepreneurs in 60 seconds [Video]

SteveJobs_BillGates

 

https://www.youtube.com/watch?v=gxo2rGr7Yfg (1:08)

  • Passion, and he explains it well.

Steve Jobs Last TV Appearance at the Cupertino City Council (6/7/11)

https://www.youtube.com/watch?v=06QqipaAvGY

Steve Jobs Presents to the Cupertino City Council (6/7/11) which was his last TV appearance only 4 months prior to his death. Steve discusses the new Apple Campus. The City of Cupertino review the plans.  On Oct 15, 2013 it adopted the resolutions to move it forward. Which made accommodations for 12,000 people, 6,200 trees, with 80% landscape and 20% building coverage, and an independent energy “center”.

Aerial Source: Ron Cervi via Twitter on AppleInsider.com

Aerial Source: Ron Cervi via Twitter on AppleInsider.com on June 10, 2014

Leading Enterpreneur is a Union Contractor

KeyMarket_redwoodmaplrg2After leaving the tech industry in 2000, I decide to work for a local family-owned grocery store. Becoming the unpaided union shop steward a few years later, taught me alot about the valuable work provide by good union workers.

On Thursday of last week, I ran into this great story at the Peet’s in Castro Valley. Someone had left a print copy of the IBEW Union Member trade sheet. To me it pointed out that knowing-the-work-done is the backbone to the 5 levels of Leadership. It this case, it is central to the business.IBEW_newsPrint

IBEW’s Solar Power in California

http://ibew.org/articles/14daily/1404/140422_solar.htm

With only $2,500, an old Ford Ranger pickup and some power tools, Sullivan put out his shingle. Twelve years later, Sullivan Solar is the largest solar-only contractor in southern California and the 10th fastest growing energy company in the country in 2013, according to Inc. Magazine.

(…)

The skill of his workforce has been central to his marketing strategy as well.

 

“Too many contractors think price is all that matters, but not everyone is a Wal-Mart shopper. Really, most aren’t, but I knew that I would still need the most compelling presentation customers had ever seen to teach them what quality meant and why it was important,” Sullivan said. “I was using my knowledge as a journeyman inside wireman as a sign of quality.”

Sullivan Solar House Example

Sullivan Solar Power installed a 10,841W #solar power system at the Lombroso residence which saves them $540 a month!