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Many of these businesses were what First Round Capitalcalled FNACs (features, not companies – this acronym has always stuck with me). I’m not even talking about your 12-page Powerpoint presentation that you need to raise venture capital or to talk with potential biz dev partners. Or lower revenue assumptions.
I say ecosystem as opposed to industry because it is not just the VC funds themselves that are imploding, instead the collapse includes entrepreneurs and startups that were funded by VCs, angel investors, service providers like lawyers, bankers and accountants as well as limited partner investors in VC funds. “dry powder&# ) and $1.5
It’s been about a year since I started working on Hustle Fund with my business partner Eric Bahn. And if your fund does well – i.e. your companies either raise more money or they grow their revenues a lot – you also don’t make more money, because your salary is based on a percentage of your fund size.
It’s been about a year since I started working on Hustle Fund with my business partner Eric Bahn. And if your fund does well – i.e. your companies either raise more money or they grow their revenues a lot – you also don’t make more money, because your salary is based on a percentage of your fund size.
Most often, one partner remained active as another partner drifted away from the business, no longer carrying the weight anticipated at start-up. The assumption at start-up is that all partners will carry their assigned weight for the foreseeable future, as percentages of ownership are divided accordingly.
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