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...

3Si Phony VC

Everyone Who Knows Anything, Knows 3Si Phony VC is a Sham. Well, everyone except the local tech rags. With them, when it comes to that "knowing" thing, there appears to be a problem. These Tech "journalists" either don't know much or don't care about sharing letting what they know to get in the way of a story on deadline. The problem in DC is that too many of the "journalists" at rags like Technically DC and DCInno simply reprint bullshit without doing research. So when they post an article like this one, "WeWork’s veterans-in-residence program expands to DC," by Technically DC or this one, "The 10 Entrepreneurs in WeWork’s First D.C. Veterans in Residence Program," by DCInno the damage the very ecosystem of which they claim to be supporters. I reached out to one, count them, one, of the listed "Team Members" on the 3Si Web Page to ask about his relationship with 3Si. His response, "I Read your 3Si expo. I’m unfortunately linked with them and can’t seem to distance myself. One of the comments you posted came from my client. I Also have a second client that 3Si attempted to screw." I'm no journalist, yet, in doing a modest amount of research I...

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...

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....