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"n the race to get the check in hand, most entrepreneurs don't do in-depth due diligence - or any due diligence - on the venture capital (VC) firms they pitch. Founding teams eager to raise capital to grow their companies enter into long-term partnerships with VC firms they don't know well. It's a risky strategy that can leave startup CEOs in mis-aligned partnerships with unrealistic expectations. To better understand their investors, entrepreneurs should start by asking these four questions: What is the VC's track record?"

"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

""You'll notice we have many more startups that aren't in the traditional software category," said Y Combinator President Sam Altman at the start of its Winter 2016 Demo Day 1. While once upon a time YC was known for legions of social and marketplace apps no one needed, it's branched out. Now Silicon Valley's top accelerator features tons of hardware, engineering, alternative energy and enterprise startups, too. [Update: Check our our list of the "Top 7 startups from YC W'16 Demo Day 1" according to investors and TechCrunch's writers. You can also see all the startups that pitched on day 2 of YC W'16 Demo Day here.] The afternoon began with a moment of silence for Andy Grove, former Intel CEO and beloved business mentor, as well as the victims of this morning's terrorist attacks in Brussels. Y Combinator President Sam Altman The house at YC's Demo Day was packed - more than anyone expected, it would seem. A few chairs short, millionaires from around the world could be seen sitting on the floor to watch startup after startup strut their stuff - many of them for the first time. The big theme of the day was profitability. In the past, YC startups have highlighted their growth, downplaying profitability as some saw it as a sign that they were shooting too small or not reinvesting enough. But due to the market correction, VCs are more keen on startups that can become sustainable faster and won't need endless funding to succeed. Today, many startups mentioned that they were already profitable, would be in several months, or were in specific markets where you don't account for money spent trying to expand. Yet Altman told us that investment was "hotter" today than he's ever seen it, with VCs aggressively pushing to invest on the spot. For the last year, he says YC has been telling startups to raise less and get to profitability faster in anticipation of a frosty fundraising climate. Yet now he believes the correction "hasn

This is the VC group April Underwood joined before funding Slack. She is now with Slack.

"Pilarinos is one of dozens of startup founders who have graduated from a two-year-old boot camp run by First Round, a venture-capital firm that focuses on early-stage tech startups. The two- to six-week program drills its cadets in important lessons that are part Sales 101, part human psychology seminar, and part tutorials on practical tasks like creating slide decks. The goal is to help startup founders, who may have spent months or years engrossed in arcane product details, sell their vision to the people with the money. And in a funding environment in which the easy money has dried up, the CEO boot camp, known as Pitch Assist, could become increasingly critical as startups fight to secure more financing. Going straight for the jugular The coaches at the boot camp, who are basically First Round partners, don't pull any punches. On the first day, CEOs are put on the spot and made to answer the burning questions investors will have - especially the tough questions for which the CEOs might not yet have answers. "Some of the questions are the sort of holes in the business," First Round partner Bill Trenchard said. "No company is perfect. There's always a weak point in the architecture." First Round First Round normally does only seed rounds of fund-raising. Pitch Assist helps those companies go on to raise their next round. Young CEOs aren't used to talking about those holes. No one starts a sales call by going over their weaknesses. When pitching investors, however, those weak points have to be addressed head-on in the presentation. "If you try to play games or try to hide things, any reasonable investor will notice," Brett Berson, First Round's vice president of platform, said. "And once you've lost that credibility, there's no coming back from that." Berson estimates that it takes about two hours of work to go through each question, but after that startup founders can step back and see the overall picture. The questions become the plot points - the m

Excellent explanation of how VC Companies work. CC Jason "Marc Andreessen recently lamented the death of the IPO in the United States, blaming over regulation and short sellers as the reason why the general public no longer gets to share in the spectacular capital returns that earlier technology stocks like Microsoft and Amazon delivered. While over regulation in the US with regimes like Sarbanes Oxley is a major problem, the data from the National Venture Capital Association shows that over the last five years that both the number of IPOs and the total amount offered is actually in an uptrend. In fact, the first quarter of 2014 saw the strongest three month period for new listings since 2000, and Alibaba is imminently coming to market which will lift the trend in 2014 significantly."

"Docady, an iOS app that lets you store and manage all your important documents, has been doing well in the App Store since its official launch in mid-July, including being featured by Apple as a 'best new app' for the last few weeks. And to help continue with that momentum, the Tel Aviv-based startup has just closed a $1.5 million funding round. Investors include Pitango Ventures, and Disruptive, the VC fund from Tal Barnoach, Eilon Tirosh and various unnamed former AOL video execs. The new investment will be used to bring the app to more platforms, with Android up next, and for the development of additional 'smart' features to make your documents work harder for you."

"April 21, 2016: In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 "The Age of the Unicorns" noting - "Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists." By January of 2016, that number had ballooned to 229. One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. Twelve to eighteen months later, you hit the road and do it again - super simple. While not obvious on the surface, there has been a fundamental sea-change in the investment community that has made the incremental Unicorn investment a substantially more dangerous and complicated practice. All Unicorn participants - founders, company employees, venture investors and their limited partners (LPs) - are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance that many Unicorn CEOs and investors are ill-prepared to navigate."

"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. "

""As Messenger has grown, we think this service has the potential to help people express themselves in new ways, to connect hundreds of millions of new people, and to become a communication tool for the world," Zuckerberg told 2,000 developers at his company's F8 conference in San Francisco in March, as he announced that Messenger was becoming so much more than just an app. "Helping people communicate more naturally with businesses will improve, I think, almost every person's life because it's something everyone does.""

"Samsung on Wednesday announced its intentions to support early-stage startups focused on emerging technologies. The company, through its global innovation group, has established a $150 million fund targeting businesses specializing in virtual reality, artificial intelligence, Internet of Things, and "other new frontier technologies." So far, Samsung has made investments in 10 startups: Converge Industries, Dashbot, Entry Point VR, Filament, Intezer, LiquidSky, Otto Radio, 2Sens, SafeDK, and Virtru. The fund is aimed at making pre-seed to series B investments. "Our investments bring the power of the Samsung platform to startups to accelerate their growth and ultimately their success," said Brendon Kim, vice president and the managing director of Samsung's Next Ventures. "The Samsung NEXT Fund expands our global reach and capabilities, while increasing Samsung's access to more great ideas, products and talent." Samsung declined to specify how much each startup receives. In addition, it appears that the company could be targeting those in Israel next, with the opening of a new office in Tel Aviv, Israel in September. There are now five offices worldwide dedicated to innovation, including San Francisco, Mountain View, Korea, and New York. More locations are planned later this year. Samsung Next formerly was known as the Global Innovation Center. The name change was done because "our new name reflects our passion for partnering with tech innovators to take them to the NEXT level - build great ideas into products, grow products into thriving businesses and scale businesses that leverage and transform the Samsung ecosystem.""

"I'm thrilled to announce the public launch of Usermind, my first investment at Menlo Ventures, and one that I'm particularly excited about. Within the first 10 minutes of meeting Michel Feaster, founder and CEO of Usermind, I knew I had to invest. Michel is an impressive entrepreneur - smart, high-energy, passionate, thoughtful, and a big product thinker - and she just happens to be addressing an incredibly important problem in the enterprise that is getting more pronounced by the day."

"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

"A startup that needs a small amont of cash (usually under $1.5-$2m or so) will find two typical structures to consider: a "priced round", where the investor and the company agree on the purchase of a certain amount of equity in the company for a given amount of cash.  The investor has a known fixed percentage of the company they own when the financing has closed. a convertible note, in which the investor gives cash in exchange for a discount on the next round of funding (which will typically be a priced round).  In this case, the investor does not know what % of the company their cash will eventually have bought and, consequently, the entrepreneur doesn't know how much dilution has occurred. There are advantages to each, but to start with, it's worth pointing out that you will rarely see convertibles used in seed financing for amounts greater than $1m or $1.5m.  (exceptions do exist).  Above that range, the investor typically wants to know what percent he or she owns of the company, so a priced round is far more common. Here's an attempt at a simple explanation of a convertible-note financing and why it is used:  If the concept is new and it proves challenging to agree on what the value of this company could be, a convertible is sometimes an easy way of the two parties saying "we're just not sure how to value the company yet until we see some traction or release the product, so let's set aside valuation until we get further down the road."  The investor gives cash, and in exchange gets a note (debt) from the company to pay back the amount (plus interest) or convert it to stock in a later round (usually the next financing).  Of course the seed investor is betting early and is therefore putting their money in with greater risk, so to offset that risk, they negotiate a discount rate on what their money will ultimately buy at the next round.  If the convertible note holder invested $500k in a convertible note, assuming the company wasn't able to pay off the n

"SAFE FINANCING DOCUMENTS The safe (simple agreement for future equity) is intended to replace convertible notes in most cases, and we think it addresses many of the problems with convertible notes while preserving their flexibility. In addition to being simpler and clearer, we intend the safe to remain fair to both investors and founders.During its development the safe was positively reviewed by many of the top startup investors. We believe it's a positive evolution of the convertible note and hope the startup community finds it an easier way to accomplish the same goals. Features of a safe: Unlike a convertible note, a safe is not a debt instrument. Debt instruments have maturity dates, are typically subject to certain regulations, create the threat of insolvency, and can include security interests and sometimes subordination agreements, all of which can have unintended negative consequences for startups. Because the money invested in a startup via a safe is not a loan, it will not accrue interest. This is particularly beneficial for startups, but also better embodies the intention of investors, who never meant to be lenders in the first place. As a flexible, one-document security without numerous terms to negotiate, a safe should save startups and investors money in legal fees and reduce the time spent negotiating the terms of the investment. Startups and investors will usually only have to negotiate one item: the valuation cap. Because a safe has no expiration or maturity date, there should be no time or money spent dealing with extending maturity dates, revising interest rates or the like. A safe still allows for high resolution fundraising. Startups can close with investors as soon as both parties are ready, instead of trying to coordinate a single close with all investors simultaneously. There are four versions of safe, corresponding to the four types of convertible note: Safe Primer Safe: Cap, no Discount Safe: Discount, no Cap Safe: Cap