By guest authors Irina Patterson and Candice Arnold This is the forty-fourth interview in our series on financing for entrepreneurs. I am talking to Jim Jaffe, the CEO of the National Association of Seed and Venture Fund (NASVF). Philadelphia, Pennsylvania–based NASVF is a global non-profit with over 600 individual members in 43 states and four
By guest authors Irina Patterson and Candice Arnold Irina: What else do entrepreneurs need to understand about venture funding? Brian: There are five- or ten-year time frames before you have success, so you have to really be aligned with your investor on the vision, what you hope to accomplish, what hurdles you’re going to see
By guest authors Irina Patterson and Candice Arnold Irina: Do you think entrepreneurs should take the lead and ask for help? Kiki: I’ll tell you one thing entrepreneurs should really do. Once they have investors who’re investing in their company, they should give them regularly scheduled updates no matter what.
By guest authors Irina Patterson and Candice Arnold Irina: What is your preferred type of investment? Brian: It’s preferred shares in a traditional equity financing. If we do a note, it’s usually a convertible piece of debt with a cap. Going back to that original comment, we don’t like our money being used to drive
By guest authors Irina Patterson and Candice Arnold Kiki: We try to direct people if we know that there’s a particular grant opening, but, generally, we wouldn’t be the best source for being the repository of all that information. Irina: What is the best way to learn about cleantech grants? Kiki: I would go to
By guest authors Irina Patterson and Candice Arnold Brian: I already mentioned how inundated we are just trying to keep up with the deals we have coming to us. I would never sleep if then tried to turn around on every deal that we pass on and try to make other introductions on their behalf.
By guest authors Irina Patterson and Candice Arnold Irina: How long do you usually prefer to hold a company in your investment portfolio? Kiki: We’d like to hold it five years or less, but the market now is more of an eight-year hold. Depending on the product, some of these are being acquired much earlier.
By guest authors Irina Patterson and Candice Arnold Irina: We talked about entrepreneurs’ past experience and how much weight it carries when they are looking for funding. Brian: It’s obviously better if you can grab, as an example, a Brian Lee, who is a co-founder of LegalZoom, and then founded Shoe Dazzle. You can look