I met with an entrepreneur. He almost has enough money to retire early, but he loves what he is doing. He loves the freedom to work on a company with substantial potential. He is having fun. He is working for upside. He also mentioned that a key part of his financial freedom has been his
Keeping VC Simple (like Foundry)
The older a VC firm gets, the more complicated it can become. Like any business, complexity can arise over time as a company grows. More staff, more investments, bigger funds. “Managerial overhead” grows. It’s why I’ve always been impressed with Foundry Group. They minimize managerial overhead, by plan. They do not want to add to
Why VC Is Important
I’m an unabashed fan of venture capital. Frankly, I think it is a job-creation machine. You may have read about Rhode Island’s $75 million loan guarantee to 38 Studios, a video game start-up that went bankrupt. Or, you may recall the $535 million of loans to the now-insolvent Solyndra, and for which the U.S.
Are VCs “Gone” All of August?
There was an interesting Twitter exchange between Jeff Bussgang and Dan Primack last week. The topic: do most VCs take all of August off? Jeff said no and Dan said yes. I think people are free to take whatever vacation they want, frankly. But, I thought I’d share how we think about it at Kepha.
“Optionality” for Founders
The best start-ups, we at Kepha think, are the ones that have or can achieve “optionality.” Optionally creates founders’ freedom. Without it, you’re hosed. Here’s why. Optionally exists when you have a repeatable and scale-able revenue model. With that, you can forecast revenues, which is the best form of financing available: non-dilutive cash. When you
Essay on the Death of a Parent
There’s a very moving essay in today’s Sunday New York Times. For those of us who have lost a parent, I think you’ll find it worth reading. Click here to read it.