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Tag Archives: investment

Eugene Kleiner PhotoWe know Eugene Kleiner as one of the traitorous 8, the founder of Fairchild Semiconductor, investor in Intel and one of the main founders of top VC firm KPCB. All of which were instrumental in the genesis of silicon valley.

I often come across interesting quotes by him. I stumbled on this set when I was going through the KPCB site, recently. Seemed like a set any entrepreneur would benefit from.

Kleiner’s Laws

* Make sure the dog wants to eat the dog food. No matter how ground-breaking a new technology, how large a potential market, make certain customers actually want it.
* Build one business at a time. Most business plans are overly ambitious. Concentrate on being successful in one endeavor first.
* The time to take the tarts is when they’re being passed. If an environment is right for funding, go for it. Eugene, more than anyone, knew that venture capital goes in cycles.
* The problem with most companies is they don’t know what business they’re in.
* Even turkeys can fly in a high wind. In times of strong economies, even bad companies can look good.
* It’s easier to get a piece of an existing market than to create a new one.
* It’s difficult to see the picture when you’re inside the frame.
* After learning some of the tricks of the trade, some people think they know the trade. This reflected some of Eugene’s own humility; he recognized that many venture capitalists thought they were experts when they had just a bit of knowledge.
* Venture capitalists will stop at nothing to copy success.
* Invest in people, not just products. Eugene always respected founding entrepreneurs. He wanted to build companies with them not just with their ideas.

And, two others – frequently quoted:

* “There is a time when panic is the appropriate response.”
* “What tips me off that a business will be successful is that they have a narrow focus of what they want to do, and they plan a sufficient amount of effort and money to do it. Focus is essential.”

The second is a thread that always runs in the back of my mind, since the time I read it.

funds
We have all heard stories of how hard companies are finding it to raise funds. It feels nice to hear a different story once in a while. I have always tried to maintain a positive outlook in life, and my fool’s optimism tells me that there was never a better time to start on a venture :-). History has it that many of the great institutions we look up to today started off during a downturn. And I for sure wouldn’t want to miss out on the one that’s going on right now.

I happened to be passing by Kevin’s Corner yesterday, and found his posts on fund raising refreshing for my tastes.

Links to Kevin’s posts on fund raising:
1. Raising Seed Capital In A Recession
2. Venture Capital Outlook For 09
3. Raising Seed Capital In The “Great” Recession

Little angel

As the borders get blurry between F&Fs, Angels and VCs, Scott Shane tries to make some ground with his post which some what demystifies the angel math.

It also brings up the point that entrepreneurs look at angel investments for reasons more than the funds and contacts it brings in. Angels should ideally be less of businessmen and more of what the name means.

Article Link: The Funny Math of the Angel – Venture Capital Financing Gap