It’s no secret that venture capital is in a tough spot right now. For startups feeling that pinch—you’re not alone. But there are things you can do to get through this tight period while you hunt for your perfect investor. I recently read this Forbes article about 5 things you can do to get through a dry VC funding market. Those tips are as follows: 1. Cut expenses where you can to protect your bottom line until you get through to the other side. 2. Revise your business plan to account for this slump—you may have to move your goals back a few years. 3. Keep networking and stay in touch with existing investors so that you remain at the top of their list when they open their checkbooks. 4. Consider investments outside of venture capital—like crowdfunding, angel investors, venture debt, and others. 5. Think Out of the Box! Consider a merger to get big enough that VCs might consider investing. I’ll link the article below so you can read more, but first… These are decisions that no business leader likes to take, but it’s all about ensuring your startup’s survival until the market clears up. With that being said, the last piece of advice offered, which is to “roll up” and merge with other startups to increase your likelihood of success, made me raise an eyebrow when I read it. This strategy can work if it is in line with your goals. But keep in mind that this could mean diluting your control of the company, adding extra variables to your market decisions, and potentially stretching your resources even thinner in the meantime. Suffice to say, it is very much not a decision I would recommend making on a whim. If you’d like to talk through the strategy behind a merger, you can connect with me any time here: https://buff.ly/4asCxPE And to read more about what you can do to survive the dry VC market, check out the Forbes article here: https://buff.ly/44Sa6ZU #MatthewGlickLegalServices #StartupAttorney #CorporateAttorney #TechStartupLawyer #DealFramework #BusinessNegotiation #LegalTerms #VentureCapital #VC #Investments #Mergers #Forbes
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Happy 4th of July! 🇺🇸 Enjoy the fireworks, BBQs, and quality time with loved ones. 🥳 Have a safe and spectacular Independence Day! 🗽 #MatthewGlickLegalServices #FourthOfJuly #4thOfJuly #IndependenceDay #USA #Holiday
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Last week, the first presidential debate of the 2024 election season was held. It definitely seems to have made a splash! I’m curious — Did you watch the debate? Vote below, and let’s see! #MatthewGlickLegalServices #PresidentialElection #PresidentialDebate #Poll
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Even with an acquisition of a very small business, some legal due diligence is worth your time ⏰ and money 💸 ! Here are some things to take the time and effort to ask for 💫💥 even in the ‘little’ deals: 1️⃣ Get full details and copies of all the legal docs 📄💼 on anyone who owns part of the business you are buying (or who could claim they own part of that business 🤯). 2️⃣ If you are getting some potentially valuable IP ⚡as part of the acquisition, make sure the seller actually owns all the rights you expect to get 🧠 and that it’s not somebody else’s property. 🛡️💸 3️⃣ Make sure any important customers or business partners of the business you are buying aren’t going to walk away after the business changes hands 🤝 because their old pals are no longer involved. 👥🤔 4️⃣ If the business uses any critical service providers (classic example: offshore development team 🌱), you will need to keep using Post-Close; make sure everything is square and in place with that vendor and that there are no hidden surprises. 🌐⚡ Read more details about these items here: https://lnkd.in/ehs5-Dvr #MatthewGlickLegalServices #StartupAttorney #CorporateAttorney #TechStartupLawyer #DealFramework #BusinessNegotiation #LegalTerms #Venture #VentureCapital #VC #Investing #CNBC
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Have you heard of “venture tourism"? That’s a term referring to investors who wanted to give the private market a try, seeding companies that maybe wouldn’t have been invested in by more experienced investors; essentially, the “excess” we’ve seen in the market. In other words, there was a boom in investing over the past couple of years, and now we’re seeing that fall away. (Remember “WeWork”?) According to an expert, Jason Calacanis, we’re seeing a slowing in the private market for the venture. Fewer startups are predicted to make it to their next vesting benchmark as these “tourists” fade away. So what does that mean for YOU? One red flag to look for when you’re courting investors is how experienced they are and how much they want to be involved; obviously, you don’t want to hand over control of your company to an investor, but an experienced investor will offer input or want to take their stake in the company seriously. If you want to hear more from Jason Calacanis, you can watch his interview here, where he talks about venture tourism in more detail: https://buff.ly/3XtGErE #MatthewGlickLegalServices #StartupAttorney #CorporateAttorney #TechStartupLawyer #DealFramework #BusinessNegotiation #LegalTerms #Venture #VentureCapital #VC #Investing #CNBC
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Great piece by Leah Hodgson at PitchBook on the very real confusion over financing round labels. While you’d think these are “just labels” and the names don’t actually matter — and legally they don’t! — terms like series seed, series a, Series c, whatever, have lots of real world business connotations, and a perfectly great (smaller) company can get tarred with negative associations because the applicable value ranges are getting all muddied. Looking forward to reading more about proposed alternatives - which are definitely needed! #startups #startupfinance #vc #venturecapital #seriesseed #seriesa
