Guy Kawasaki on Venture Capital (pt 3)

[Nomirule]

Oh hello! Have you thought about intellectus list building (search on google)? Ive heard some awesome things about it and my sister got a ton of cash pumping buyers added to their list.

[JunePTpwner]

Guy is a total twat retarded happa idiot.

[citopr]

Hey this guys eats his eye cold.. he picks it at1:07 and he eats its at 2:22.. Sorry.. I see all..

[siasabora]

brutal and candid 

[arunkw]

I didn't get Forecast as when you are saying add one to shipping date divide by 100.

So if my shipping date is say 15 Aug 2010, even if I add 1 to that date and divide by 100. Is it that the answer value that I will get is a $ earning for that year.

[Yilsherev]

I'm an italian student in management engineering. I found this video really helpful to improve my view of venture capitalists' needs and expectations, so I'll try to use all these advices in a business plan. Thanks mr. Kawasaki.

[darianknight]

If working capital is the requirement, and the company in question has the clients/customers already at their door. And all they require is working capital to expand until the cash flow gap is filled, then the obvious choice is to take out a loan from the bank, since the security of return is higher and the percentage for the ROI to the bank is much lower than a VC (which normally likes to see 10 to 20 times the investment and even a stake in the company). Of course it's a VCs dream come true ;)

[darianknight]

I think all of the points he makes are spot on except the very last one. If a company comes to a VC and says "We need money because we have more customers than we can scale to match" that should actually be a red flag to VCs with common sense. It shows that the company involved has inadequate revenue generation projections to afford scaling versus the cost per user. In the long run, this may actually be more of a loss than a gain to the investor.

[etamarL]

To darianknight: actually, your assumption is not necessarily correct. Companies need *working capital* to bridge cash flow gaps until their revenues arrive, and thus arriving at a VC with a solid presentation of why working capital is needed can still make a proposition viable.

[marcinnowacki]

First of all, such a company will not go to the VC, because they will prefer to get a loan. Of course VC would like a "no risk" high potential investment, the problem is, usually entrepreneurs are not stupid.

[DannyBoy443]

@darianknight True, and good point. But, in all honesty, I don't know if anyone would be that stupid to just walk into or setup a meeting with a VC team and say that.

[nagarjun424]

5 Stars!! Absolutely love this video!!