Blog

My iPad

Yes, I bought an iPad last Saturday. For those that know me, you will be surprised to know that I even waited in line for almost 2 hours. But I must say, Apple really had its act together. They had the line snake down a service corridor, so that you couldn’t see it when you came in. And then they …
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“Save Angel Investing” Amendment to Senator Dodd’s Restoring American Financial Stability Act of 2010

(With thanks to Bill Carleton and Joe Wallin)

High-growth startups are a cornerstone of our economy. Studies have shown that these startups account for much of the job growth in the US and are critical for America’s competitiveness. Angels who finance these companies often become actively involved and help the companies thrive. Angel investment in startups provides the primary and …
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Dodd Bill to go to the full senate

As those who are following this topic know, the Senate Finance Committee moved Dodd’s Financial Reform bill out of committee without any amendments. This unusual move means that the three sections that might cripple angel financing remain in the bill. It becomes more critical than ever that we notify our senators of our adamant opposition to these sections that could …
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Startup Finance and Dodd Bill – follow up

On my last post, I referenced Scott Shane’s data. For those that haven’t read his book, The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live By (http://www.amazon.com/Illusions-Entrepreneurship-Costly-Entrepreneurs-Investors/dp/0300158564/ref=sr_1_1?ie=UTF8&s=books&qid=1269045575&sr=8-1) – it’s an important book for angel investors.

He has now published an article in Business Week that gives more detail on his insights and calculations …
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Setting a Strategic Course for a Startup

Setting a strategic course and vision for a startup is one of the most potent weapons to get your company on the right path, become capital efficient (because you will spend your resources wisely to reach your goal), and then get to a premium exit valuation. Yet, many startups don’t spend sufficient time early on setting their strategic course. This …
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Taking Money from Entrepreneurs’ Pockets

In a previous posting/rant, I talked about Angel Groups that gouge entrepreneurs (http://blog.drosenassoc.com/?p=13). Some charge over $10,000 for the right to present and that steams me. However, I have not directed my wrath at another group that gouges entrepreneurs even more – brokers and small investment bankers. Note to entrepreneurs: Do Not Use a Broker (or small investment
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Senator Dodd’s attack on Angel Investing

Senator Dodd decided to take on an overhaul of banking regulations. In his massive 1300+ page bill (http://banking.senate.gov/public/_files/ChairmansMark31510AYO10306_xmlFinancialReformLegislationBill.pdf), he has slipped in an attack on angel investing. It would impose burdensome and unnecessary new legal and regulatory requirements on startup companies raising angel financing. A recent post by Joe Wallin and Bill Carlton on TechFlash (http://www.techflash.com/seattle/2010/03/congress_attack_on_angel_financing.html) …
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Different Sorts of Energy Companies

There are many types of “green” companies or companies that help save energy. I have two contrasting companies in my portfolio that illustrate this well.

The first is Virticus (www.virticus.com), whose products and services allow owners of lighting solutions to reduce energy and maintenance costs by 30-50%. They sell to parking lot owners (e.g. shopping centers) and cities …
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More Startups Die of Indigestion Than Starvation

I am often asked, as I was today, what are the biggest mistakes that startups make that cause failure. Among them is a lack of focus that can be characterized by the phrase: “more startups die of indigestion than starvation.” It is hard to raise money. Therefore common wisdom would indicate that “starvation” is the biggest risk. However, years of …
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