#venturecapital Posts

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Toby Clarence-Smith
Don't Scale an Unprofitable Business: Why Unit Economics (Still) Matter

With venture funding having grown more than 120% in the US in the last five years, startup founders and investors alike have grown increasingly comfortable with low margin business models. But the successes of the Amazons and Facebooks of this world often mask failure in a slew of other sectors, where the “build it and they will come” model doesn’t always work.

In this article, Toptal Finance Expert Toby Clarence-Smith brings attention back to the importance of studying a business’ long-term sustainability prospects, with a particular focus on unit economics, one of the building blocks of profitability and breakeven analysis for startups.

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Vidur G. Gupta
Family Office Investment Guide: An Alternative to Venture Capital

The origins of family office investing date back, colorfully, to at least 15th century Florence, when the Medicis auspiciously gave the likes of Michelangelo and Da Vinci their start. Fast forward to present day, family offices have quietly continued to rival household VC names in the capital structures of the world’s largest tech companies (Uber, Facebook, and WeWork, for example).

Finance Expert Vidur Gupta presents a captivating introductory piece on the secretive but potent world of family office investing.

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Alex Graham
ICOs, Exotics and Platforms - An Insider’s Perspective on the Future of Venture Capital

2017 saw a number of issues arise in the VC industry and it may be approaching a watershed regarding its relevance.

This article looks into the root causes of the industry’s problems and why they have come to light. VCs can go through a pivot of their own to retain a seat at the table, with big data, exotic funds and platforms offering a path forward.

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Natallia Chykina
Open Source Software - Investable Business Model or Not?

Open-source software is a catalyst for growth and change in the IT industry, and one can’t overestimate its importance to the sector. In recent years, there has been a surge in venture capital dollars pouring into the sector. In this article, we analyse whether recent valuations make sense, and whether the open-source model lends itself to the returns profile that venture capital investors look for.

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Alex Graham
Term Sheet Templates - Clauses to Look Out For During Negotiation

Despite the large increase in resources aimed at helping founders navigate the fundraising process, many still struggle when it comes to particular term sheet clauses that can have unintended consequences if misunderstood.

These clauses can lead to founders losing control of their company or payout structures upon exit down the road, regardless of how much capital they succeeded in raising. This in-depth post by Toptal Finance Expert and VC Alex Graham fills the knowledge gap by breaking down the term sheet’s trickiest clauses and the implications thereof.

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Toby Clarence-Smith
The Party Isn’t Over: A Deep-Dive into Why Unicorns Will Bounce Back in 2017

Between 2013 and 2015, the number of Unicorns exploded to 140 members, marking an incredible growth spurt in valuations and positive sentiment toward the venture industry.

But after a rocky 2016, in which scandals, funding downrounds, and more cautious investor commentary emerged, many have questioned the validity of the sector’s valuations. With this backdrop, 2017 is shaping up to be a make-or-break year for the Unicorn Club. Is the party over?

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