Comments on: The Venture Spiral http://www.k9ventures.com/2008/11/the-venture-spiral/ Funding and support for concept and seed stage startups. Fri, 16 Jul 2010 15:19:03 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Is there a funding gap between “testing ideas” and “building businesses”? | Unstructured Thoughts by Taylor Davidson http://www.k9ventures.com/2008/11/the-venture-spiral/comment-page-1/#comment-58 Is there a funding gap between “testing ideas” and “building businesses”? | Unstructured Thoughts by Taylor Davidson Sat, 14 Feb 2009 17:51:47 +0000 http://www.k9ventures.com/?p=247#comment-58 [...] their current bets alive rather than making new bets. It’s a reasonable strategy given the structural math behind venture investing, the Darwinian nature of startups and the resulting need to give possible successes the chance to [...] [...] their current bets alive rather than making new bets. It’s a reasonable strategy given the structural math behind venture investing, the Darwinian nature of startups and the resulting need to give possible successes the chance to [...]

]]> By: A Time for Change in Venture Capital | K9 Ventures http://www.k9ventures.com/2008/11/the-venture-spiral/comment-page-1/#comment-6 A Time for Change in Venture Capital | K9 Ventures Wed, 10 Dec 2008 06:06:24 +0000 http://www.k9ventures.com/?p=247#comment-6 [...] About « The Venture Spiral [...] [...] About « The Venture Spiral [...]

]]> By: Peter S Magnusson http://www.k9ventures.com/2008/11/the-venture-spiral/comment-page-1/#comment-5 Peter S Magnusson Mon, 01 Dec 2008 06:39:24 +0000 http://www.k9ventures.com/?p=247#comment-5 I would add to the entrepreneur perspective on this, on how early investments translates to restrictions on funding level. I did a slide recently to illustrate the effect: http://petersmagnusson.wordpress.com/files/2008/11/compound-interest-slide-2008-psm.jpg It assumes 30% return expectations and not the approx 20% IRR you indicate. First-time entrepreneurs don't fully realize the "cost of time" for funding at different stages of the startup. The net message: keep your early costs down. I would add to the entrepreneur perspective on this, on how early investments translates to restrictions on funding level. I did a slide recently to illustrate the effect: http://petersmagnusson.wordpress.com/files/2008/11/compound-interest-slide-2008-psm.jpg

It assumes 30% return expectations and not the approx 20% IRR you indicate. First-time entrepreneurs don’t fully realize the “cost of time” for funding at different stages of the startup. The net message: keep your early costs down.

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