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Which Investors Add Value

By David Frankel - Stanford
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Lecture Description

Jason Green, David Frankel and Michael Cline, the Founding Partners at Emergence Capital, Altirah Capital and Accretive Technology Partners respectively, discuss the qualities of VCs and investors who add value to the business. First, Green suggests that investors should be a sounding board. Second, Frankel argues that investors should bring experience that helps the startup avoid time consuming pitfalls. Third, Cline argues that valuable investors both act as a conscience and help connect the startup to customers. Finally, Green suggests that entrepreneurs should do reference checks on their investors to ensure they make the right partnerships.

Course Index

  1. Managing the Tradeoff between Venture Partner and Financial Terms
  2. Raising Money outside Silicon Valley
  3. How to Pick a Venture Partner
  4. Advice about Term Sheets
  5. What to Expect and to Avoid in Term Sheets
  6. Replacing Yourself as CEO
  7. Leadership is the Scarce Input for a Startup
  8. How to Attract Great Talent
  9. How Much Money to Raise?
  10. Cautions about Raising Too Much Money
  11. Option Pools and Sharing Wealth with the Team
  12. Setting Valuation
  13. Creating Real Value: Substance over Form When Raising Money
  14. Using Agents to Help Raise Money
  15. Venture Funding Challenges in Emerging Economies
  16. Which Investors Add Value