I recently connected with one of the founders in our portfolio. A company where he worked two start-ups ago was sold. He got his check last year. His personal take, which he humbly whispered to me, was $5 million. I asked him what he did with the money. I expected to hear about a new
I don’t think there’s a lot that business school can teach start-up founders. But, there is one particular lesson I think is valuable: managing culture and conflict. Here’s what I mean. When I arrived at Harvard Business School, my classmates and I were automatically assigned to one of nine “Sections” (I was in Section F).
One day, our investors did something unusual. Let me explain. Our first fund was $50 million and closed in 2007. A year later, we were thinking of raising more money. One of our investors quickly offered a big check. Other existing investors did the same, and so, our fund was slated to grow to $100 million (we decided to
[4.7.12 Addendum: Many of the management company details are now available on a SEC web site. More details here.] Here’s how VC firms are paid. When VCs raise funds, they are paid in two ways. First, they get a commission on gains they produce for the fund, which is usually 20 percent and is called
I recently was reading email in my parked car. A car pulled up near me. A young and pretty woman got out. Pale and thin, she looked tense. An older woman had driven her. She looked very sad. They started unloading a few plastic bags of clothing and children’s toys. It wasn’t much. The young
I saw last weekend an interesting documentary called “Hiding and Seeking.” The film chronicles an Orthodox Jewish family’s journey back to the old country, but also, back in time. The narrator and his wife both have parents who survived the Holocaust. They take their grown sons back to the small eastern European towns where family members