Silicon Valley entrepreneur and venture capitalist, Guy Kawasaki, gave a speech at StartWorks, Silicon Valley in Spring 2008. This is part 1 in a 3-part series. (c) 2008 John Montgomery. Film by Expert In A Box.
@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.
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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.
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.
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.
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 ;)
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.
@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.
DannyBoy443 1 month ago
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Nomirule 3 months ago
Guy is a total twat retarded happa idiot.
JunePTpwner 3 months ago
Hey this guys eats his eye cold.. he picks it at1:07 and he eats its at 2:22.. Sorry.. I see all..
citopr 9 months ago
brutal and candid
siasabora 10 months ago
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.
arunkw 2 years ago
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.
marcinnowacki 2 years ago
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.
Yilsherev 2 years ago
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 2 years ago
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.
etamarL 2 years ago