Sramana Mitra: We see cap notes a lot in Silicon Valley, but if you go outside of Silicon Valley, people are still using equity vary aggressively. We, very often, see terribly diluted deals at very early stages. Don Hutchison: That is the historic nature of equity investment. The issue you’re talking about is before notes
David Blumberg: I was speaking at a conference in Mexico recently. It was about transportation of the future. I’m not an expert in that, but I’ve got some theories. A lady from Ford Motors got up and said, “The future of transportation is green, recyclable, and sustainable.” Then a man from Delphi Auto Parts said,
Sramana Mitra: There are 70,000 seed investments a year and only about 1,200 to 1,500 venture investments. There is a huge Series A gap that people have to deal with. How do you recommend the seed investors as well as the entrepreneurs who are raising seed money mitigate the gap? Don Hutchison: You’re going to
Sramana Mitra: The basic discipline that growth is important and so is profitability went away in the early part of this decade. It’s starting to correct itself again. What happens in the minds of venture capitalists so that what seems like basic arithmetic suddenly disappears? David Blumberg: Over the last few years, we like to
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Don Hutchison was recorded in October 2017. Don Hutchison is one of the most experienced and long-term Angel investors in Silicon Valley. We discuss the trends of the industry and ways to mitigate
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with David Blumberg, Blumberg Capital was recorded in September 2016. David Blumberg, Founder and Managing Partner of Blumberg Capital, has been in the business for a long time, and we had a very interesting chat
Sramana Mitra: How are the entrepreneurs receiving this alternate thinking? Bryce Roberts: There’re two trains of thought. In the predominant Silicon Valley culture, the response tends to be, “Why would we do that?” They’re very indoctrinated into the idea of selling equity and getting on that successive round of funding to ratchet up the valuation.
Sramana Mitra: What denomination do you invest in and what stage? What do you require to see to want to invest? Bryce Roberts: For the first batch of companies we did, we had a pretty broad mandate. We were trying to figure out for whom this type of network and this type of resources made