Alan: Another one is in the financial services arena, and it has been cash flowing now for over twenty-four months, and it doesn’t get any better than that. When a company is just internally building cash, it’s a wonderful thing to see and we’ll probably look at exit on that company possibly even this year
By guest authors Irina Patterson and Candice Arnold Irina: How many people work for the fund? Jeff: It’s just me. I am a workhorse. I have done eighty-two deals in the past six years on my own. And I do support my companies and I do help them and work with my CEOs despite the
Irina: Do you have any sector preference? Alan: No, but I’ll hit on a couple. First off, one of our criteria – and I call it a soft criterion, but it’s a general guideline that we adhere to – is that within Springboard’s membership, it’s 53 partners, if we don’t have anybody who has expertise
By guest authors Irina Patterson and Candice Arnold This is the fourteenth interview in our series on financing for entrepreneurs. I am talking to Palo Alto-based Jeff Clavier, founder and managing partner of SoftTech VC, an early-stage venture capital firm managing a $15 million seed fund, SoftTech VC II. Irina: Hi, Jeff. Could you tell
By guest authors Irina Patterson and Candice Arnold Irina: At what stage of a company’s development do you usually invest? Alan: Post-revenue. To be a little bit more precise, it’s post-revenue but probably before they have a sufficient customer base to interest the venture funds. Venture funds look at companies at various stages but tend,
By guest authors Irina Patterson and Candice Arnold Alan: In our valuation, we generally ignore almost all the analytical things like discounted cash flows and those types of approaches and simply look at exit – and our expectation of exit is never accurate, of course – to try and figure what kind of internal rate
By guest authors Irina Patterson and Candice Arnold Irina: What’s the average dollar amount you invest? Alan: Normally, the average is about $500,000 that we’ll invest initially in every company. It may be a little less, maybe a little above. The largest initial investment we ever made was about $750,000. But it normally hovers around
By guest authors Irina Patterson and Candice Arnold Alan: That would be followed closely by the competitive advantage that the company has, particularly if it’s a sustainable competitive advantage, that would allow them to attack the market. The stage of the company’s development . . . we generally do not look very seriously at pre-revenue