Group items tagged

"Venture capital (VC) firms will go to great lengths to convince the most promising tech founders to accept their deals so they can get their hands on that all-important slice of equity. Some of them will offer introductions to important people in their network, while others will offer hardcore engineering support and a cool place to work. The very best advice, swanky dinners, and even the odd CEO retreat are also up for grabs if you sign a term sheet with us, they might say. But Vineet Jain, CEO and cofounder of cloud storage firm Egnyte, which has raised $62 million (£43 million), believes many VCs overpromise. Speaking to Business Insider by phone on Tuesday, Jain said: "Most VC firms say we give you more than money. That's complete hogwash." Egnyte, which competes with Box and Dropbox, has been backed by Google Ventures, the venture capital arm of Google, and Kleiner Perkins, a well-known Silicon Valley investor with billions at its disposal. Jain, whose company is based over the road from Google in Mountain View, was quick to say that Google Ventures is unlike many other venture capital companies. "They were instrumental to us," he said, adding that the firm helped Egnyte to improve its web user interface and assisted with the company's marketing efforts. Egnyte has also integrated its cloud storage platform - used by 15,000 companies - with Google's own cloud platform, Google Drive. Unlike Box and Dropbox, who have raised $558 million (£385 million) and $1.1 billion (£760 million) respectively, Egnyte is on target to be cash flow positive by the third quarter of this year. "I refused to have a free version of Egnyte," said Jain. "Look at where I am today.""

"Considering Salesforce is sitting on top of $1.9 billion in cash, the amount they spent on venture capital is still pretty small. The $145 million cash they invested last quarter is only a fraction of the $731 million it generated in operating cash flow, too. But the fact that Salesforce is increasingly looking for ways to find the next future growth engine through these investments sends a positive sign to the market, Stifel's Rodericks says, especially as Salesforce becomes a more mature company. "They're sitting on a ton of money on their balance sheet, so to a certain degree, investors would like to see them make these strategic investments in companies around this space," Roderick said. And that could potentially lead to more acquisitions, he noted, as Salesforce Ventures has been more active on the buy side too lately. It acquired sales intelligence software RelateIQ for $390 million last year, after spending $2.5 billion on marketing software ExactTarget two years ago. "This certainly gives them more visibility in the companies that they might look at as partners or potential acquisitions down the road," he said. We should be able to get to find out more about it on Thursday, when Salesforce reports its second quarter earnings. Analyst estimates are pretty much in line with Salesforce's forecasts at $1.6 billion in revenue for an EPS of $0.18."

An amazing article about Marc Andressen and his a16z VC firm on Sand Hill Road. Covers the entire story and provides a great insight into how Silicon Valley and VC industry work. It's long, but nevertheless a must read. Very enjoyable! " At his firm, Andreessen Horowitz, the venture capitalist routinely lays out "what will happen in the next ten, twenty, thirty years." CREDIT PHOTOGRAPH BY JOE PUGLIESE On a bright October morning, Suhail Doshi drove to Silicon Valley in his parents' Honda Civic, carrying a laptop with a twelve-slide presentation that was surely worth at least fifty million dollars. Doshi, the twenty-six-year-old C.E.O. of a data-analytics startup called Mixpanel, had come from San Francisco to Sand Hill Road in Menlo Park, where many of the world's most prestigious venture-capital firms cluster, to pitch Andreessen Horowitz, the road's newest and most unusual firm. Inside the offices, he stood at the head of a massive beechwood conference table to address the firm's deal team and its seven general partners-the men who venture the money, take a seat on the board, and fire the entrepreneur if things go wrong. Marc Andreessen, the firm's co-founder, fixed his gaze on Doshi as he disinfected his germless hands with a sanitizing wipe. Andreessen is forty-three years old and six feet five inches tall, with a cranium so large, bald, and oblong that you can't help but think of words like "jumbo" and "Grade A." Two decades ago, he was the animating spirit of Netscape, the Web browser that launched the Internet boom. In many respects, he is the quintessential Silicon Valley venture capitalist: an imposing, fortyish, long-celebrated white man. (Forbes's Midas List of the top hundred V.C.s includes just five women.) But, whereas most V.C.s maintain a casual-Friday vibe, Andreessen seethes with beliefs. He's an evangelist for the church of technology, afire to reorder life as we know it. He believes that tech products will soon

"A new player has entered the enterprise productivity race. For decades, Microsoft reigned as the market leader in enterprise productivity - until Google pushed into the space with Google Apps. Now, with the acquisition of Quip, Salesforce is joining Microsoft and Google in the race. The implications, however, extend far beyond productivity and CRM. Recent developments in enterprise software - including Oracle's acquisition of NetSuite, Microsoft's purchase of LinkedIn and Salesforce's acquisition of Demandware and Quip - point to a shift in the market. Enterprise software (not just productivity apps) can no longer be siloed applications bolted together with varying degrees of integration. Today's tools are expected to be cross-functional, with native integration, real-time collaboration and smart communication at their very core. Enterprise software giants across different verticals are moving in the direction of end-to-end solutions in an attempt to own more of the workflow - Salesforce's acquisition of Quip will only intensify the competition. For enterprise software startups, it's indicative of more mergers and acquisitions to come."

"The great thing about ideas is that they don't cost anything. Today there are more ways than ever to turn your app ideas into something material for close to free, but at the next steps of app entrepreneurship, you'll need more than pocket change. This article is for app inventors who already have a minimum viable product on hand. When you're ready to truly launch your product into the world, you'll need sufficient capital and a team of people behind you who can help you take it to the next level. This role is often best filled by experienced angel, seed, and venture investors. The key to securing an investor or investors is doing your homework. You'll need to first take your idea to the people who can push the concept, and you, further. Think of securing funding as looking for a new job, because that's really what it is. You're on the hunt for the funds that will make self-employment and professional self-realization possible. So, where to start? First, ask yourself if you are prepared for conversations with investors. It's great to get a meeting, but you'll usually only have one shot with a potential backer. Have you validated that your idea works? Can you effectively acquire users and monetize your business? If the answer is yes to these questions, then make sure you have a concise and well-designed 10-page pitch deck that explains how you will execute and scale your idea. If you're not sure what should be in the deck, try a quick Google search for some helpful examples, or refer to this video that explains the key components. Next, you need to make a list of appropriate investors. Narrow the list to only funds that invest in your sector and understand the size relative to the round you are trying to raise. If you're contacting growth funds for your $200K seed round, you're wasting your time. Vet your list against Crunchbase and AngelList, two resources that will give you the full scoop on the funds you are looking at. Once you've p

"Dropbox made a number of headline-grabbing moves over the past few weeks, but Storm Ventures partner Anshu Sharma's more concerned than impressed. He sees a company that's failing to figure out what customers truly need - falling for what he calls the "Stack Fallacy," a term he coined to describe how successful companies in one area often overvalue what they know and misjudge what they need to build next. "Companies fail when they take the 'what' for granted," Sharma told Business Insider, referring to companies that falsely believe that they already know "what" customers want. "

"I've been exploring a growing list of web-based tools for the creation and management of what most would call 'documents' - assemblages of text, images, lists, embedded video, audio and other media - but which, are in fact, something quite different than the precursors, like Microsoft Word and Apple Pages documents. The big shift underlying these new tools is that they are not oriented around printing onto paper, or digital analogues of paper, like PDF. Instead, they take as a given that the creation, management, and sharing of these assemblages of information will take place nearly all the time online, and will be social at the core: coediting, commenting, and sharing are not afterthoughts grafted onto a 'work processing' architecture. As a result, I am referring to these tools - like the pioneering Google Docs, and newer entrants Dropbox Paper, Quip, Draft, and Notion - as 'work processing' tools. This gets across the idea that we aren't just pushing words onto paper through agency of word processing apps, we're capturing and sharing information that's critical to our increasingly digital businesses, to be accessed and leveraged in digital-first use cases. In a recent piece on Medium, Documents are the new Email, I made the case that old style 'documents' are declining as a percentage of overall work communications, with larger percentages shifting to chat, texting, and work media (enterprise social networks). And, like email, documents are increasingly disliked as a means to communicate. And I suggested that, over time, these older word processing documents - and the use cases that have built up around them - will decline. At the same time, I believe there is a great deal of promise in 'work processing' tools, which are based around web publishing, web notions of sharing and co-creation, and the allure of content-centric work management."

"The 2015 holiday season is upon us and the year is drawing to a close. Soon our thoughts will drift to our hopes and goals for 2016. For those who are dreaming of a new job at an up-and-coming young company, we've compiled this list to help. All of these companies specialize in making tech for work and business use, a $3.5 trillion worldwide market. All of them had spectacular years in 2015, by launching great new technology or getting a boatload of funding or landing big partnerships and generally setting themselves up for a successful 2016 and beyond."