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Category: Funding Trends

VCs Love Mobile Health Devices and Apps

September 25, 2013 by Shyam Jha

Mobile Health Apps

Venture Capitalists are voting with their dollars, when it comes to products and applications that target the mobile segment. Fifty companies in the mobile health segment have attracted $310 million in VC funding this year from January to August, compared to $229 million raised by 42 firms during the same period last year, according to a recent research report by Rutberg & Co. The mobile health area refers to the marriage of healthcare applications with mobile devices such as wearable monitors and smartphones. It can be further divided into two [Read More]

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Rise of the $3.4 Billion Taxi Service, and Other Valuation Tales

September 5, 2013 by Shyam Jha

Valuation of Uber Taxi Startup

The $3.4 billion uber-valuation that Uber – the on-call taxi and limo service – received recently in its latest round of financing has eyes popping and tongues wagging. Uber is expected to reach revenue of $125 million in 2013, implying a valuation of almost 30 times revenue. A number of other taxi-hailing startups such as Lyft and Hailo are also revving their engines to get into the highly regulated livery service business. Economists tell us that valuation bubbles happen periodically. The Internet Era has shortened the time between the occurrences [Read More]

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Common Sense Advice for Web Entrepreneurs

January 30, 2013 by Jimmy Lewin

Common Sense Entrepreneurship

The New York Times recently ran an article, After Rocky Year for Start-Ups, Investors are Pickier, in which the author, Nicole Perlroth describes how funding may be getting scarcer for Internet and e-commerce start-ups and early stage companies. The piece is well documented and probably pretty accurate, even though it’s not great news for many of our clients and other Web entrepreneurs. It got us to thinking how we should advise our clients who may face an even more difficult time raising capital than in the past. We’ll pass along [Read More]

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Making the Move with Mobile Apps

January 21, 2013 by Shyam Jha

Mobile app funding and trends

VCs invested $28.3 Billion in 3,267 deals in 2012. While the total invested was down by 7.5%, the number of deals was up by 7%, according to the most recent survey by CB Insights published last week. The mobile sector saw a five-quarter high in activity. Mobile deals are taking share away from Internet deals, according to CB Insight’s report titled “Venture Capital Activity Report – Q4 2014.” Early stage deals dominated the mobile sector, with Seed and Series A funding comprising nearly 75% of all deals in the sector. [Read More]

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Crowdfunding Under the JOBS Act – Is It For You?

August 24, 2012 by Richard Hasenpflug

Crowdfunding Under the JOBS Act

Most of the hype around the recently enacted JOBS Act (Jumpstart Our Business Startups Act) has focused on crowdfunding. But what is crowdfunding? Is it worth all the hype? Can it help you raise the funding you need to start or grow your business? The word “crowdfunding” is confusing because it has been applied to two very different types of fund raising. Until now, the term crowdfunding has applied to sites like Kickstarter, which allow companies to raise money through donations or by pre-selling the goods or services they eventually intend to [Read More]

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Development Banks Can Help Your Business

August 20, 2012 by Jimmy Lewin

Development Banks Can Help Your Business

Generally speaking, development banks are publicly owned financial institutions that are established for the purpose of providing medium- and long-term capital for public or private investments in developing economies. Most of the time, capital is provided in the form of loans. In some cases, these loans may be accompanied by technical assistance. Most people are aware that the World Bank or the African Development Bank will provide capital and assistance so that some village in Africa can build a water treatment plant or an airport. These are highly important initiatives [Read More]

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They Just Threw Out the Rule Book for Raising Funds

August 14, 2012 by Richard Hasenpflug

They Just Threw Out the Rule Book for Raising Funds

If you are an entrepreneur looking for capital to launch or grow your business, life will soon get a little easier. In early April 2012, President Obama signed the JOBS Act (Jumpstart Our Business Startups Act, not to be confused with the similar-sounding American Jobs Act). This bipartisan bill (a phrase rarely heard these days) is intended to untangle the jumble of funding-related regulations that have accumulated over many decades. While most of the attention has focused on the JOBS Act’s new crowdfunding provisions, it includes several other provisions that might [Read More]

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Most Startups Really Don’t Need Investors

January 13, 2012 by Marty Zwilling

Small Business, Big Vision: Lessons on How to Dominate Your Market from Self-Made Entrepreneurs Who Did it Right

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. Yet, according to some sources, over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. According to a new book, “Small Business, Big Vision,” by self-made entrepreneurs Adam and Matthew Toren, it’s really a question of need versus want. We all want to have our [Read More]

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How Do Non-Profit Organizations Raise Money?

September 28, 2011 by Marty Zwilling

How Do Non-Profit Organizations Raise Money

Angel investors and venture capitalists don’t invest in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. Yet I still get this question on a regular basis, so I’ll try to outline the considerations in common-sense terms. A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Examples include charitable organizations, trade unions, and public arts [Read More]

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How New Entrepreneurs Can Enhance Fundability

September 13, 2011 by Marty Zwilling

Marc Andreessen

Investors are people too. They evaluate you like you should assess a possible co-founder or first employee. What are your credentials? What have you done that would convince me that my money is safe in your hands? Only after they see you as fundable, do they want to assess your plan for fundability, not the other way around. Even with great credentials, it is all too possible for an entrepreneur to come across as a high risk investment. Here are some “rules of thumb” that indicate a marketable and experienced [Read More]

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