Brad Feld, managing director at Foundry Group and co-author of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, is someone every serious entrepreneur should get to know. He’s been there and done that, so he’s got incredible insights; especially when it comes to understanding venture capital. I started following Brad in late 2006 when I landed on a blog post explaining the Term Sheet (www.feld.com/wp/category/termsheet). While I wasn’t seeking Venture funding at the time, I was impressed by Brad’s foresight and have since been a huge advocate of his experience.
I’ve learned from Brad that “the only things people should care about in the first round financing is (a) valuation and (b) the amount raised.” I realize that it’s much more complicated than that, but as entrepreneurs, this allows us to focus on what truly matters – economics and control. Smart entrepreneurs understand very clearly what’s driving their economic engine, and; therefore, able to negotiate from a position of strength and intelligence. Above all, it’s synergy and a shared vision that will determine the success of a Venture relationship.
Listen to Brad share his best advice to entrepreneurs….