Over the last three weeks I have visited the west coast twice and
Toronto once to help clients work through funding rounds and
strategic acquisitions. I also visited with two angel
investment groups which I work with. The primary purpose of
each trip was to help clients develop and realize their capital
strategy for growth. While most of these entrepreneur clients
are in technology fields, others include a tax planning firm and a
Bollywood project out of Toronto.
It does not matter what world...
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One of our
very own, Eric Davis, is being nationally recognized for his
success in the October issue of The ABA
Journal. Eric has long been a leader in entrepreneurial
expertise and business law, and is a strong exterior source
contributing to our firm, Alerding Castor Hewitt, LLP. The
article discusses about how Eric jump-started his career and
the many roads on which it has taken him. In the
article, Eric considers himself a "hybrid" because he does not
necessarily fit in just one firm....
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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 at “selling themselves” and “pitching” their ideas and
companies to investors.
I cringe every time I listen to a great start-up idea or read a
well-written business plan, and then watch in horror as...
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I don't often re-post articles in full glory, but I couldn't resist
with this one. This is a great article from the OMMA (a
magazine of online media, marketing & advertising).
There are some great quotes from quite a few movers and
shakers in the Indiana technology area. As a technology legal
counsel located in Indianapolis, it warms my heart to see this kind
of great press for the area. Personally, I think all
technology firms should move or open offices here.
Big hat-tip to Jay Baer for...
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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 market comp.
Investors must rely on qualitative factors in connection to
valuation formulas to determine how much they think the thing is
worth. Some qualitative factors include:
• Is the...
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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 am all into the Six Sigma approach of throwing a couple
of innovators together, rolling out a v1 product as quickly as
possible, and slowly scaling the company from hobby phase to a
successful...
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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 expect the
CEO to know the company's internal rate of return (IRR) - and
why it matters.
I meet many entrepreneurs who have served as VPs or middle managers
before embarking on their entrepreneurial...
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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
entrepreneurial law fields. We have some exciting new
Internet-based and SaaS clients. This month we helped a
client negotiate a stock purchase deal and have handled no less
than thirty SaaS or software licensing...
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Your friendly Indianapolis attorney at Alerding Castor Hewitt LLP
here with a history lesson and tie in to business law. Most
of you have probably heard the term “gerrymander” and know that it
refers to a process of dividing a territory into districts in order
to give one political party an advantage over another by
concentrating the voting strength of that party in as many
districts as possible. Fewer of you
probably know the origin of the term, and I imagine that even
fewer know much about...
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This
morning I attended the
Techpoint event: What it Takes
to Lead a Successful Entrepreneurial Venture Today and was
reminded of some fundamental leadership qualities that I see in
many of the successful business owners we work with as a business,
entrepreneurial and information technology law firm.
Speaking today were Daniel DeHayes, a Professor Emeritus of
Business Administration with the Indiana University Kelley School
of Business and Delphia Croft, the Managing Principal of...
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I'm going to cheat a little on this. I read a great blog post
by Jeff Ready over at the McStartup blog (www.mcstartup.com).
The blog post is all about the importance of radical
innovation. I have a place in my heart for radical innovation
because I believe that in the legal community, we are the radical
innovators. ACH strives after its goal to be an information
technology law firm, a venture capital law firm and a business law
firm, but we go about it in a way that is radical to many...
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I wrote a post a few weeks back on
B2B, B2C and C2C technology companies in
Indianapolis. Here are a couple of paragraph excerpts:
Indianapolis has done some amazing
things in SaaS technology markets. As many readers of this
blog know, much of my business law practice focuses on SaaS law,
Internet law and funding law. Most of this is in
business-to-business (B2B) SaaS markets. This week I was
thinking about how this is not just true of my practice, but it
also is true for Indianapolis as a...
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In my recent blog series,
Entrepreneurial Law - Developing a Good Business
Model, I addressed how an entrepreneur needs to work through
three prongs in order to develop a sustainable business model
developed for growth: Market Opportunity; Management Team; and
Capital Structure.
Private equity investors asses the same prongs when determining
whether to make an investment in an emerging company, but I find
that investors tend to set the prongs in their own priority
ranking. I think all three must...
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I love Indianapolis,
but I find it a difficult place for emerging companies to raise
capital through private placement offerings. More established
companies have less trouble, but earlier stage companies often are
caught in a chicken/egg situation – they need capital to move to
the next business stage, but private equity investors don’t want to
invest until they are through that next stage.
Part of what makes Indiana so great is that we are very fiscally
conservative. In fact we were one of only...
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There is a good
article on the Mercury News Blog today on
How dot-com
start-ups have changed 10 years later. The article
addresses the maturity of both technology companies and
US private equity investors over the last decade. It is
an interesting read.
There has been a lot of activity in angel investor groups and
venture capital investments in Indiana technology companies over
the last few months.
2010 has definitely started with a bang at
Alerding Castor Hewitt where we have helped five...
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A
few years back, sometime in the mid 1990’s, while an undergraduate
business student at Purdue University, a fellow classmate and I
entered the
Burton Morgan Entrepreneurship
Competition. We were the only undergraduate students
chosen as top 10 finalists in the event – an accomplishment for
which I am still quite proud.
I remember the program as being challenging, informative and
humbling. Following rounds of having our business plan
reviewed and commented on by professors, we presented to a...
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I have taken a few
weeks off of blogging. Honestly, I felt like I needed the
break, but I am excited about getting back on the saddle and
writing again.
Since it has been a few weeks, let me give a brief update on what
we have been up to. Alerding Castor Hewitt has had an
exciting beginning to 2010. On January 1, Bill Boncosky
joined us. Bill is a business attorney / technology and SaaS
law attorney working with privately held companies, primarily in
technology industries. Bill has spent the...
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There are several scope of license issues to work through when
handling license agreement negotiations. In my SaaS law (SaaS
legal consulting) practice I often see licensees wanting to open
the scope of the license to its “affiliates”.
For many larger SaaS customers this makes sense as these businesses
often operate as families of companies rather than single operating
entities. The customer may need to open the license to its
other companies in order to properly use the software. Just
last...
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There are several business blogs that I follow. Most of these
are written by SaaS law / Internet law clients of mine or other
Indiana businesses in technology industries. Lately I have
been falling behind on them. This morning I am trying to
catch up.
I came across a very good, brief video on
Kristian Andersen + Associates'
blog.
The video is from the Bigger Ideas/Smaller Indiana conference this
past summer. In the video Kristian Andersen shares his
feelings on central Indiana's business...
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I saw
a great article awhile back in Entrepreneur and thought
I should post the article for those in the formation stages of
their next business venture.
I can't stress enough how much time and energy it takes to launch a
start-up, and just how
much the success or failure of a budding new company rests on the
people involved. I see it everyday as an Indiana
technology lawyer involved in Indiana entrepreneurial law.
You can count on spending hours upon hours of the day with your
business...
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