Aggregate Media Funds, a Swedish firm started in 2002, pools excess advertising space provided by 15 Swedish media companies that are shareholders in the fund, and gives it to start-ups in return for an equity stake (it also plans their marketing for them).
Digital advertising company CPX Interactive has developed an incubator initiative to support the advertising technology space. CPX will review start-ups in the sector that are in need of early funding and overhead support and infuse the selected companies with capital and resources to help clear typical early stage hurdles, including: core employee salaries, sales and marketing efforts, ad serving execution, creative development, technology needs and more..
via CPX Incubator.
I can’t believe investors fall for this stuff:
ZestCash takes an entirely different approach to underwriting by combining Google-style machine learning techniques and data analysis, combined with traditional credit scoring. As a result, the company can offer credit to many people who historically would have been turned away.
For entrepreneurs, the key message is to be really careful about doing a social networking startup in 2012. The social networking wave is about to crest. There are very few ideas and opportunities in this space that aren’t crowded. There will be many opportunities for “quick flips” based on momentum, but the oversupply of startups makes it a very risky time to start a company in this area.
By November, Mr. Andreessen and his team were on the hunt for less well-known names and called up Actifio Inc
via After Airbnb, Marc Andreessen Is Looking For Cheaper Deals.
Read another way, this means at the margins, Andreessen has no edge over other VC firms because this strategy is exactly what every other firm is using
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That’s my exact line that I start off with when I’m asked for advice by guys/gals looking to get into venture capital. It’s a very common to see junior VCs start off with this sort of warning.
Rob writes an overall good article but I would’ve been more blunt and said flat out that there is no career path here for junior guys. Sure, there are 1-2 guys that get through but let’s not call that a “path”.
If you’re extremely lucky or skilled, you’ll make it through to the other side but I would say that that’s extremely unlikely. Associate roles are really dead end paths so if you are really committed to taking on a junior role in venture, just make sure your expectations and plan a few years out. Of course, that is, unless you have a really strong answer for why a firm should give you a meaningful share of their pie.
I’m sure most of you have read this already– an intriguing story by Rand Fishkin of SEOmoz on his ordeal raising VC:
I’ve been released from terms of confidentiality and I can share the long, strange story of how I first rejected, was eventually persuaded, but ultimately failed to raise a second round of investment capital.
via Misadventures in VC Funding: The $24 Million Moz Almost Raised « Rand’s Blog.
…his firm often considers $2 of annual revenue per user to be an important target threshold for startups.
via How Much Is a User Worth? – Technology Review.
Not really much else compelling in this blog post with such a strong title.
This has been true even before the recent early stage deal inflation surge. All the increase in average Series A rounds did was reveal it. Still too much money chasing too few deals.
“At at time when the average Series A round is now north of $20mm (based on very anecdotal evidence and not at all scientific), this poses challenges for the VC industry,” says Wilson.
via CHART OF THE DAY: Why It’s Hard Being An Early Stage Investor Right Now, According To Fred Wilson.
