From: Miha Ahronovitz <mij...@sbcglobal.net>
Date: Sun, 27 Sep 2009 16:06:15 -0700 (PDT)
Local: Sun, Sep 27 2009 7:06 pm
Subject: Re: [ Cloud Computing ] Re: The business reality in the cloud emergent year of 2009
The $250K is place holder. The angels administrating the fund may decide anywhere from 50K to 500K for a specific high risk funding. which pre-VC funding
It is relatively easy to have VC appointment. They may invite over 1,000 candidates to present in a year. From those maybe 2 or 5 get funded. They get the anwer YES. This means 3M to 5M or more in VC funding.
Probably 895 candidates hear NO. The rest of 100 are advised to do more more work and come back later. It it this group of 100 businesses that need more 3 month or 6 months or 12 months of work to get the chance in front of the VC. These 100 ideas have a good potential, but their entrepreneurs do not have the money to invest 50K, never mind 500K
If these 250K (50k to 500K) were the total VC investment, Jim is right, this is not sufficient. What I call a VC fund should be better called a an 'Angel fund" that removes the risk at the pre-VC investment stage.
Miha
________________________________
@Jim, @Gabriel,
It is not uncommon practice by the VC community to expect startup founders to take very low / small or no salaries as they get the startups off the ground.
$250K doesn't cover two corporate Fortune 500 type headcount. I suspect that for a startup, that level of 1st round investment represents a high valuation from the perspective of the VC community.
-Ray
On Sun, Sep 27, 2009 at 10:33 AM, Jim Starkey <jstar...@nimbusdb.com> wrote:
-- >>Ray DePena wrote: >>> Hi Miha, >>> Conceptually, I agree.
>>> The numbers, well, I'll leave that to others more expert in these
>>> I could be wrong, but I doubt anyone is rejoicing in your failure.
>>> You point out something interesting. Each merger and acquisition (and
>>> Since replacement work for that talent base is currently low. Do you
>>> -Ray
>>> P.S. Didn't realize you were in Rocklin, CA (I'm in Folsom)
>>> On Sat, Sep 26, 2009 at 6:15 PM, Miha Ahronovitz
>> <myinnervo...@gmail.com <mailto:myinnervo...@gmail.com>> wrote:
>>> The conversation is about who bought whom. VMware bought SpringSource
>>> We go over an over on how the new enlarges older companies will
>>> There is no company creation. All the masses of technical experts are
>>> Something is not working in America.
>>> New ideas will come alive with new companies creation. We don't have
>>> We concentrate the power in fewer hands and watch impotently .We have
>>> My intent to do something by starting a petition at
>> , has the staggering number of 43 signatures. I am grateful to each
>>> I don't have common sense and I will continue to believe that times
>>> Miha
>>> --
>> Ray DePeņa
>>> http://www.linkedin.com/in/raydepena
>--
Ray DePeņa Director, Stealth Startups Strategic Business Advisor http://www.linkedin.com/in/raydepena
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