How To Invest in Startups

This is Mr. Cranky's Official Guide on How To Invest in Startups. Now a better topic than How To Invest in Startups would be Why The Hell Would You Want to Invest In Startups but that's another article. Also, a warning. These are my opinions, based on experience as a limited partner in Venture Fund and an Angel Investor. Do not make investment decisions based on this article! Got that? It's just observations of the various choices and the relative benefits and pitfalls of multiple investment methodologies. No primer on how to invest in startups would be complete without a primer on the state of Venture Capital. Venture Capital Investment today is divided into the Haves and the Have Nots: The Haves (THs) - a group of venture funds who raise money from top financial institutions and endowment funds. The THs don't have to actively go out and raise money, there's a long line of Limited Partners ready to invest well over $1 million dollars in the fund to get access to the "best deals." If you're reading this to learn something, you can't invest in any of THs. THs get access to the best deals and in order to limit competition...

Jonathon Perrelli Bottle

Jonathon Perrelli Epilogue Part 3 (revised)

Prologue to the Jonathon Perrelli Epilogue Two weeks ago, I posted the first of a 3 part series Jonathon Perrelli Fortify VC Part 1 with a follow-up Part 2 last week. Yup, there goes Mr. Cranky picking on a poor pioneer of DC's Startup Ecosystem. Not one of the people who protested about the series did so by refuting any of the facts presented in those posts. JP didn't respond to my request for information, nor did he reply in comments, except possibly under the pseudonym "goonsquad" in the comment section of the first post. All of the folks who protested my first two blog post protested with the same response...

Buzz to Biz Fool

Mr Cranky’s Buzz to Biz Ratio

What is the Buzz to Biz Ratio say you? It's the ratio that measures the correlation between company buzz and the value of a business. It's the fact that real companies understand that time, money, resources are precious and any resources dedicated to things other than designing, building, selling and supporting the best damn product possible is wasted energy. The Buzz to Biz ratio is the metric that separates a great company like ZoomData...

executive coaches - whoopass

DC’s Boom To Bust Startup Cycle Update

Here we go again. We’ve crested the top of the latest DC Region Startup roller coaster hill and we’re now speeding towards a bottom.  Just four years ago, in 2012 there was a budding DC Startup Industrial Complex. This included multiple media outlets with hot shot reporters, there were record breaking events like the DC Tech Meetup purportedly the largest meetup of its kind in the world..if not the universe. New venture funds were forming. Every week there was a new pitch event for startups raising money and yet today we enter the third tech bubble since the dot com bust in 2001. The signs are everywhere, journalistic reporters specializing in startups like Bill Flook and Kasra Kangarloo left the Washington Business Journal and have not been replaced. Steven Overly  of the Washington post…gone and not replaced. Tech Cocktail left town. Tanya Anderson & Tech Bisnow publish no more.  In fact there are a few rags but no legitimate publishing voice left in the DC startup tech world. In 2001 this region boasted over 20 very active Beltway-based VCs  actively investing in companies across the region. Today we’re down to just a handful: New Enterprise Associates, Revolution, New Atlantic Ventures and Grotech....

nibletz dumbification

The Two Worlds of #DCTech

There are two worlds of DC Tech, The Real World and the Bizaro World. The press, are naturally attracted to the Bizaro World where up is down, black is...