There is no “Foundry Group Boulder Signaling Problem”
Forbes published an article yesterday by Maureen Farrell stating that there’s a “signaling problem” for TechStars Boulder companies who don’t raise money from Foundry Group. “… one byproduct of [Foundry Group’s] generosity for any young Boulder company is that, if it hasn’t been funded by The Foundry Group, it must explain why. Otherwise it has a signaling problem, something that happens when a VC invests in an early round but doesn’t show up for later rounds.” …
October 22, 2010· 5 min read
When is your start-up no longer a start-up?
A few days ago I received an email asking me if I had a “rule of thumb for determining when a start-up can no longer be considered a start-up”. The sender proposed a few potential answers but I thought this one might be a good one to put out there for feedback from readers. His suggestions were: *Two consecutive quarters of positive free cash flow? *Drop pooled benefits company like Administaff for in-house benefits administration? *Anything > C round, seeking to lever w/ mezz debt or file S-1? *Name of company becomes a verb in our lexicon? *Receive gov’t stimulus funding? *Oprah uses your product? …
October 20, 2010· 2 min read