Friday, October 21, 2011
When considering entering into a partnership or making a private
investment in an early stage company, beware of the “idea
guy”. This is a title sometimes used by entrepreneurial
minded individuals who don’t contribute to the growth of the
company through development, sales or management but...
Wednesday, October 19, 2011
As stated in Part 2 of this series, a business’ capital strategy is
both directed by the market strategy and leadership team required
to carry out the strategy as well as directing to the market
strategy and team. A solid capital strategy is based on
understanding where you are and where you need...
Wednesday, September 14, 2011
The following is a guest post by a fellow Gravity Ventures member
and friend, Dr. Tony Ratliff:Learning to Pitch Before You Start
Raising Capital By Dr. Tony Ratliff It only took about six months
of deal flow and a handful of “pitches” before I realized that most
entrepreneurs are really, really bad...
Thursday, January 1, 1970
It is with deepest pride, and greatest pleasure, that I announce
the newest additions to Alerding Castor Hewitt LLP, attorneys Eric
Davis and J.R. Hensley. A welcome supplement to our business
law staff, Eric and J.R. will each provide new and unique functions
to the team.David Castor, a founding...
Thursday, May 26, 2011
Determining a valuation for a pre-revenue company is a difficult
process. A Harvard VC formula does not make sense at this
stage as available P/E ratios essentially compare apples to
oranges, cash flow projections are too untrustworthy to use a DCF
method, and there is no such thing as a true...
Wednesday, May 18, 2011
A tech entrepreneur friend recently told me that the concept of an
“evangelist” in tech companies is all but dead. Honestly I
don’t know if it was ever as alive as people thought, but I liked
where he was going with this. I’ve talked to a number of
aspiring entrepreneurs who view their role in...
Tuesday, April 19, 2011
All securities offerings fall into one of three
classes:1. Registered, 2.
Exempt, or 3. Illegal.Private offerings of
securities are just that – “private”. The key for any private
offering is that the offerer may only solicit investors through
private methods. There are all sorts of rules...
Wednesday, March 2, 2011
Last night I lectured on this topic to my entrepreneurial capstone
class at Purdue. It is possibly the most basic question for
any startup looking to raise capital, but it is often not
approached correctly. In my experience most entrepreneurs
take a wild guess at their number.The correct approach...
Monday, February 28, 2011
Agreement titles are funny things. In their best use they
quickly describe the general subject matter of the contract.
For most situations a simple title is helpful. E.g.,
"Services Agreement" helps differentiate between a contract for
services and one for goods. That is helpful. Many
Thursday, February 24, 2011
I've had several conversations with concerned entrepreneurs over
the last year about changes in the accredited investor standards
under the Dodd-Frank Act. In January the SEC proposed
amendments based on Dodd-Frank to the accredited investor standard
which subtracts the net equity value of an...
Tuesday, February 22, 2011
I know there will be an "official" congratulatory press release in
the near future, but I thought I'd take a moment to congratulate
the Alerding Castor Hewitt partners on being included in the 2011
Indiana Super Lawyers. Brian Hewitt received the nod as
one of the Top 50 Super Lawyers in the state....
Monday, February 21, 2011
In the words of Schoolhouse Rock, “three” is the magic
number. That is not what I am talking about. Every
business model has some number milestone that must be met to ensure
a basic level of success for the business. This can be number
of customers, revenue, user seats, market share,...
Thursday, February 17, 2011
I have said it a million times since learning the lesson myself in
a failed entrepreneurial effort a couple of years ago, the CEO of
any entrepreneurial venture must understand the importance of
managing cash flows and how to use cash flow analysis for the
strategic growth of the company.Trust me, I...
Monday, November 22, 2010
It has been said a million times already on this blog – a CEO,
especially one which is seeking funds from private equity
investors, needs to understand finance. Often a basic
knowledge of sources and uses and cash flow analysis is enough, but
in many early stage investment rounds, savvy investors...
Sunday, October 31, 2010
Last Wednesday, I had the great opportunity to attend the 2010
Techpoint Summit. For those of you that don't know, Techpoint
is organization with the mission of "accelerating Indiana's
emerging and vibrant tech sector" (source:
www.techpoint.org). This great organization fosters and
Wednesday, October 27, 2010
Alerding Castor Hewitt, LLP is a business law firm that works
with many technology start-ups in their formation stages and in
assisting with the legal aspects of dealing with private equity
investors. The entrepreneurial spirit of our clients is inspiring,
and I am looking forward to attending...
Monday, October 25, 2010
The last couple of years have been strange. With the change
in the economy, many early stage companies are looking for anybody,
and I mean anybody, to invest in their capital round. As the
economy rebounds (which we are seeing in technology markets)
business owners are again able to be picky when...
Thursday, October 21, 2010
Next week I am moderating the plenary panel at TechPoint’s
Innovation Summit entitled Funding Innovation. Check it out:
TechPoint Innovation Summit Also check out the sponsors
page. I counted today, and nine Alerding Castor Hewitt
clients are sponsors of the Summit. That is
awesome. This year’s...
Tuesday, October 19, 2010
So I have been a bit behind in blogging these past few weeks.
With the new addition to my family (my 3rd son), life has been
hectic. But, I am back and ready to role.As a general update,
Alerding Castor Hewitt continues expand as technology legal counsel
in SaaS law, funding law and...
Monday, October 11, 2010
Ok, I'll admit it. I was in a rut. Although I found
numerous interesting tidbits through-out cyberspace, I could not
find anything that piqued my interest enough to put aside the
billable hours of a technology legal counsel for a few moments to
blog about it. But, lo and behold, a college student...