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		<title>Startup News: Size That Matters and a New Mobile Music Concierge</title>

		<comments>http://betabeat.com/2012/03/the-startup-rundown-size-that-matters-and-a-new-music-concierge-and/#comments</comments>
		<pubDate>Wed, 28 Mar 2012 08:00:47 -0400</pubDate>
					<link>http://betabeat.com/2012/03/the-startup-rundown-size-that-matters-and-a-new-music-concierge-and/</link>
			<dc:creator>Ben Weitzenkorn</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=35489</guid>
		<description><![CDATA[<p><div id="attachment_35716" class="wp-caption alignleft" style="width: 203px"><a href="http://www.betabeat.com/2012/03/28/the-startup-rundown-size-that-matters-and-a-new-music-concierge-and/quincy/" rel="attachment wp-att-35716"><img class="size-medium wp-image-35716" title="quincy" src="http://nyobetabeat.files.wordpress.com/2012/03/quincy.jpeg?w=193&h=300" alt="" width="193" height="300" /></a><p class="wp-caption-text">Quincy cofounders Christina Wallace and Alex Nelson via Quincy</p></div></p>
<p>WAITING ROOM.<strong> <a href="http://zocdoc.com" target="_blank">ZocDoc</a> </strong>just became active in Austin, the company's 16th market. Available to over one-third of the U.S. population, ZocDoc is continuing its mission to make scheduling doctor's appointments really fucking easy with well over one million unique visitors each month.</p>
<p>DINERO.<strong> <a href="http://integrate.com/" target="_blank">Integrate</a></strong>, a New York-based company that helps businesses "plan, execute, track, analyze and optimize their multi-channel marketing strategy" just raised $11 million in Series B funding. <strong>Comcast Ventures</strong> and <strong>Liberty Global </strong>joined <strong>Foundry Group</strong>, a repeat investor.</p>
<p>VERTICAL BUZZ. Last week <strong><a href="http://buzzfeed.com" target="_blank">BuzzFeed</a></strong> launched two new verticals—<a href="http://www.buzzfeed.com/jpmoore/buzzfeed-sports-an-introductory-manifesto-with-bl" target="_blank">Sports</a> with <strong>Jack Moore</strong> and <strong>Kevin Lincoln</strong> and <a href="http://www.buzzfeed.com/amyodell/introducing-shift-its-for-women-and-dudes-kin" target="_blank">Shift</a>, aimed at female readers, with <strong>Amy Odell</strong> of <em>New York Magazine</em>.</p>
<p>MEASURE UP. Harvard Business School bffs Christina Wallace and Alex Nelson are tall girls who were looking for tall girl pants. Enter their new fashion startup, <strong><a href="http://http://www.quincyapparel.com/" target="_blank">Quincy</a></strong>, which rethinks women's apparel sizing by assigning sizes based on bust and height. The site launched yesterday with a collection of five blazers, and will roll out more highly-tailored items over the coming months.<!--more--></p>
<p>FLEXIBLE. The new <strong><a href="http://dumbostartuplab.com/" target="_blank">DUMBO Startup Lab</a></strong> at 68 Jay St. is giving membership to those who qualify. Members can choose to  lay down a "stationary" workspace starting at $400 per month. "Portable" work space is $200 per month and everyone has 24-hour access to conference space, mentorship and advice from DUMBO Startup Lab pros.</p>
<p>SHOPTIME STORIES. In January, we told you about an as-yet-unnamed <a href="http://www.betabeat.com/2011/12/01/a-startup-store-launches-in-chelsea-irl-goods-from-birchbox-bauble-bar-artspace-and-quirky/">store in Chelsea</a> that was selling online goods from startups like Birchbox, Artspace and Quirky offline for limited time. Well, founder and merchandising whiz <strong>Rachel Shechtman</strong> who likes to call her company, "<a href="http://thisisstory.com/">a retail space that has the point of view of a magazine, changes like a gallery and sells things like a store</a>," has given her shop a name, <strong>Story.</strong> Starting yesterday, Story opened its doors for its second "issue," and startups are once again on display. This time the theme revolves around color with items from <strong>BaubleBar</strong>, <strong>CHROMATICgallerie</strong>, <strong>StyleMint</strong> (the Mary-Kate Olsen and Ashley Olsen brand), and more and will be open daily <a href="http://thisisstory.com/">until Tuesday, May 22nd</a>.</p>
<p>DJ DROID. Last week <strong>Songza</strong>, the company behind the mobile app that helps users find and make playlists based on mood, time of day and other variables, released an iOS app <a href="http://itunes.apple.com/us/app/songza/id453111583?ls=1&amp;mt=8" target="_blank">update</a>, adding to their new Music Concierge feature. The update is designed to help users find the tunes they're in the mood for easily and faster. With no fees, limits or commercials, it looks like healthy competition for Pandora and Spotify.</p>
<p>BREAKAWAY. <a href="http://www.meetup.com/Startup-Hockey/events/56492152/" target="_blank">Startup Hockey</a> is tonight at 95 5th Ave. on the fifth floor. Leave your skates at home though, all you need is your thumbs. The organizers also made "a half-hearted promise to schedule these further in advance."</p>
<p>HACKING? <a href="http://www.meetup.com/nyc-on-rails/events/56595852/" target="_blank">Hacker office hours</a> are tomorrow night at 6 p.m. Go to 71 Pineapple Street in Brooklyn for all your programming questions.</p>
<p>GET TOGETHER. The inaugural <strong>NY Tech Day</strong> is on April 19th. <a href="https://nytechday.com/" target="_blank">Free registration</a> is now open but hurry up because nothing's infinite, right?</p>
<p>ONLINE DATING—IN REAL LIFE. <strong>Uncubed</strong>, formerly the Silicon Alley Talent Fair, is now open for registration. If you're looking for a job, go <a href="http://uncubeme.eventbrite.com/" target="_blank">here</a>. Hiring companies, register <a href="http://uncubed.eventbrite.com/" target="_blank">here</a> and use code "EB11" to get  15 percent off. You'll be among 80+ NYC companies and 500+ people hungry to work. Drinks, music and ping-pong will round out the event on April 26th.</p>
<p>CANDLE WIX.<strong> <a href="http://www.wix.com" target="_blank">Wix</a></strong> is a site building tool "for the code inept." Earlier this week, Wix unveiled its HTML5 product, adding new functionality to the formerly flash-only platform. In addition to their web products, the Israel-based company also has the <a href="http://wixlounge.com" target="_blank">Wix Lounge</a> in Union Square, a workspace for creatives. There's one in San Francisco, too.</p>
<p>WHISTLE WHILE YOU...<strong> Lot18</strong> has openings for an account management intern, acquisition manager, marketing coordinator, user experience designer, director of engineering, front end developer and softwae engineer. Check out job descriptions <a href="http://www.lot18.com/careers" target="_blank">here</a>. <strong>2tor</strong> is looking for a staff accountant with more than two years of experience and a strong basis in MS Office. They also need a tech intern and have many other NYC based jobs on their <a href="http://2tor.com/careers/" target="_blank">website</a>. <strong>ChallengePost</strong> needs a UX/product lead who will say "I don't know" before giving a bullshit answer. Don't lie <a href="http://challengepost.jobscore.com/jobs/challengepost/product-ux-lead/b697FmqcGr4lV3eJe4bk1X?sid=161&amp;detail=Inside+Startups+Newsletter&amp;remail=&amp;rfirst=&amp;rlast=" target="_blank">here</a>.<strong><br />
</strong></p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_35716" class="wp-caption alignleft" style="width: 203px"><a href="http://www.betabeat.com/2012/03/28/the-startup-rundown-size-that-matters-and-a-new-music-concierge-and/quincy/" rel="attachment wp-att-35716"><img class="size-medium wp-image-35716" title="quincy" src="http://nyobetabeat.files.wordpress.com/2012/03/quincy.jpeg?w=193&h=300" alt="" width="193" height="300" /></a><p class="wp-caption-text">Quincy cofounders Christina Wallace and Alex Nelson via Quincy</p></div></p>
<p>WAITING ROOM.<strong> <a href="http://zocdoc.com" target="_blank">ZocDoc</a> </strong>just became active in Austin, the company's 16th market. Available to over one-third of the U.S. population, ZocDoc is continuing its mission to make scheduling doctor's appointments really fucking easy with well over one million unique visitors each month.</p>
<p>DINERO.<strong> <a href="http://integrate.com/" target="_blank">Integrate</a></strong>, a New York-based company that helps businesses "plan, execute, track, analyze and optimize their multi-channel marketing strategy" just raised $11 million in Series B funding. <strong>Comcast Ventures</strong> and <strong>Liberty Global </strong>joined <strong>Foundry Group</strong>, a repeat investor.</p>
<p>VERTICAL BUZZ. Last week <strong><a href="http://buzzfeed.com" target="_blank">BuzzFeed</a></strong> launched two new verticals—<a href="http://www.buzzfeed.com/jpmoore/buzzfeed-sports-an-introductory-manifesto-with-bl" target="_blank">Sports</a> with <strong>Jack Moore</strong> and <strong>Kevin Lincoln</strong> and <a href="http://www.buzzfeed.com/amyodell/introducing-shift-its-for-women-and-dudes-kin" target="_blank">Shift</a>, aimed at female readers, with <strong>Amy Odell</strong> of <em>New York Magazine</em>.</p>
<p>MEASURE UP. Harvard Business School bffs Christina Wallace and Alex Nelson are tall girls who were looking for tall girl pants. Enter their new fashion startup, <strong><a href="http://http://www.quincyapparel.com/" target="_blank">Quincy</a></strong>, which rethinks women's apparel sizing by assigning sizes based on bust and height. The site launched yesterday with a collection of five blazers, and will roll out more highly-tailored items over the coming months.<!--more--></p>
<p>FLEXIBLE. The new <strong><a href="http://dumbostartuplab.com/" target="_blank">DUMBO Startup Lab</a></strong> at 68 Jay St. is giving membership to those who qualify. Members can choose to  lay down a "stationary" workspace starting at $400 per month. "Portable" work space is $200 per month and everyone has 24-hour access to conference space, mentorship and advice from DUMBO Startup Lab pros.</p>
<p>SHOPTIME STORIES. In January, we told you about an as-yet-unnamed <a href="http://www.betabeat.com/2011/12/01/a-startup-store-launches-in-chelsea-irl-goods-from-birchbox-bauble-bar-artspace-and-quirky/">store in Chelsea</a> that was selling online goods from startups like Birchbox, Artspace and Quirky offline for limited time. Well, founder and merchandising whiz <strong>Rachel Shechtman</strong> who likes to call her company, "<a href="http://thisisstory.com/">a retail space that has the point of view of a magazine, changes like a gallery and sells things like a store</a>," has given her shop a name, <strong>Story.</strong> Starting yesterday, Story opened its doors for its second "issue," and startups are once again on display. This time the theme revolves around color with items from <strong>BaubleBar</strong>, <strong>CHROMATICgallerie</strong>, <strong>StyleMint</strong> (the Mary-Kate Olsen and Ashley Olsen brand), and more and will be open daily <a href="http://thisisstory.com/">until Tuesday, May 22nd</a>.</p>
<p>DJ DROID. Last week <strong>Songza</strong>, the company behind the mobile app that helps users find and make playlists based on mood, time of day and other variables, released an iOS app <a href="http://itunes.apple.com/us/app/songza/id453111583?ls=1&amp;mt=8" target="_blank">update</a>, adding to their new Music Concierge feature. The update is designed to help users find the tunes they're in the mood for easily and faster. With no fees, limits or commercials, it looks like healthy competition for Pandora and Spotify.</p>
<p>BREAKAWAY. <a href="http://www.meetup.com/Startup-Hockey/events/56492152/" target="_blank">Startup Hockey</a> is tonight at 95 5th Ave. on the fifth floor. Leave your skates at home though, all you need is your thumbs. The organizers also made "a half-hearted promise to schedule these further in advance."</p>
<p>HACKING? <a href="http://www.meetup.com/nyc-on-rails/events/56595852/" target="_blank">Hacker office hours</a> are tomorrow night at 6 p.m. Go to 71 Pineapple Street in Brooklyn for all your programming questions.</p>
<p>GET TOGETHER. The inaugural <strong>NY Tech Day</strong> is on April 19th. <a href="https://nytechday.com/" target="_blank">Free registration</a> is now open but hurry up because nothing's infinite, right?</p>
<p>ONLINE DATING—IN REAL LIFE. <strong>Uncubed</strong>, formerly the Silicon Alley Talent Fair, is now open for registration. If you're looking for a job, go <a href="http://uncubeme.eventbrite.com/" target="_blank">here</a>. Hiring companies, register <a href="http://uncubed.eventbrite.com/" target="_blank">here</a> and use code "EB11" to get  15 percent off. You'll be among 80+ NYC companies and 500+ people hungry to work. Drinks, music and ping-pong will round out the event on April 26th.</p>
<p>CANDLE WIX.<strong> <a href="http://www.wix.com" target="_blank">Wix</a></strong> is a site building tool "for the code inept." Earlier this week, Wix unveiled its HTML5 product, adding new functionality to the formerly flash-only platform. In addition to their web products, the Israel-based company also has the <a href="http://wixlounge.com" target="_blank">Wix Lounge</a> in Union Square, a workspace for creatives. There's one in San Francisco, too.</p>
<p>WHISTLE WHILE YOU...<strong> Lot18</strong> has openings for an account management intern, acquisition manager, marketing coordinator, user experience designer, director of engineering, front end developer and softwae engineer. Check out job descriptions <a href="http://www.lot18.com/careers" target="_blank">here</a>. <strong>2tor</strong> is looking for a staff accountant with more than two years of experience and a strong basis in MS Office. They also need a tech intern and have many other NYC based jobs on their <a href="http://2tor.com/careers/" target="_blank">website</a>. <strong>ChallengePost</strong> needs a UX/product lead who will say "I don't know" before giving a bullshit answer. Don't lie <a href="http://challengepost.jobscore.com/jobs/challengepost/product-ux-lead/b697FmqcGr4lV3eJe4bk1X?sid=161&amp;detail=Inside+Startups+Newsletter&amp;remail=&amp;rfirst=&amp;rlast=" target="_blank">here</a>.<strong><br />
</strong></p>
]]></content:encoded>
		<wfw:commentRss>http://betabeat.com/2012/03/the-startup-rundown-size-that-matters-and-a-new-music-concierge-and/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
		<media:content url="http://2.gravatar.com/avatar/becf95fa833b8aeb13f7720732bd6dc6?s=96&#38;d=identicon&#38;r=G" medium="image">
			<media:title type="html">jhanasobserver</media:title>
		</media:content>

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		<title>Meet Gidsy: TechStars&#8217;s SideTour Gets Its First  Another Competitor in the &#8216;Authentic Experiences&#8217; Market</title>

		<comments>http://betabeat.com/2011/11/meet-gidsy-techstarss-sidetour-gets-its-first-competitor-in-the-authentic-experiences-market/#comments</comments>
		<pubDate>Fri, 11 Nov 2011 10:52:00 -0400</pubDate>
					<link>http://betabeat.com/2011/11/meet-gidsy-techstarss-sidetour-gets-its-first-competitor-in-the-authentic-experiences-market/</link>
			<dc:creator>Nitasha Tiku</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=21646</guid>
		<description><![CDATA[<p><div id="attachment_21648" class="wp-caption alignleft" style="width: 328px"><img class="size-full wp-image-21648" title="gidsy" src="http://nyobetabeat.files.wordpress.com/2011/11/gidsy.jpg" alt="" width="318" height="353" /><p class="wp-caption-text">A familiar avatar on the Gidsy homepage!</p></div></p>
<p><strong>Update: </strong>As our esteemed commenters pointed out, we forgot about Vayable! Our bad.</p>
<p>When Betabeat first heard about <a href="http://www.sidetour.com/">SideTour</a>, the TechStars startup serving up "authentic experiences" led by "interesting" people (say, Zen tea sessions from a Buddhist monk), we have to admit, our response was: fun idea! Smart dudes! But how big is the market of people who would actually sign up? Apparently bigger than we imagined, which might be why investors and mentors <a href="http://www.betabeat.com/2011/10/17/the-12-sexiest-techstars-ny-companies-demo-day/#slide8">seemed so smitten</a> with the startup.</p>
<p>Now, <a href="http://www.technewsdaily.com/3403-gidsy-launches-authentic-experiences-marketplace-yorkers.html">TechNewsDaily</a> is reporting that a startup called <a href="http://gidsy.com/">Gidsy</a> out of Berlin's white hot startup scene has opened in New York City to play in SideTour's home turf. Gidsy, which bills itself as an "authentic marketplace for tours, activity, and local events" opened in New York yesterday after launching in Berlin last week.<!--more--></p>
<p>And it already has some support from the Silicon Alley natives. Investor and entrepreneur Mark Birch is hosting a Chinatown Dumpling Tour currently featured on the Gidsy homepage. (N.B.: After Demo Day, Betabeat suggested a similar tour, but in Flushing, to SideTour co-founder Mark Webster. Get on the 7 train, people! It's where all the good food is hiding.)</p>
<p>Both companies allow users to submit a unique potential tour or activity based on their expertise that is then sold on the startup's website.</p>
<p>At least <a href="http://www.crunchbase.com/company/gidsy">according to Crunchbase</a>, Gidsy has yet to acquire funding. Sidetour, on the other hand, raised $1.5 million from RRE and Foundry Group and appears to be putting its focus on getting traction in New York before trying to scale to other cities. In such a new niche, Gidsy's entry into the New York scene is, more than anything, proof that the market exists.</p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_21648" class="wp-caption alignleft" style="width: 328px"><img class="size-full wp-image-21648" title="gidsy" src="http://nyobetabeat.files.wordpress.com/2011/11/gidsy.jpg" alt="" width="318" height="353" /><p class="wp-caption-text">A familiar avatar on the Gidsy homepage!</p></div></p>
<p><strong>Update: </strong>As our esteemed commenters pointed out, we forgot about Vayable! Our bad.</p>
<p>When Betabeat first heard about <a href="http://www.sidetour.com/">SideTour</a>, the TechStars startup serving up "authentic experiences" led by "interesting" people (say, Zen tea sessions from a Buddhist monk), we have to admit, our response was: fun idea! Smart dudes! But how big is the market of people who would actually sign up? Apparently bigger than we imagined, which might be why investors and mentors <a href="http://www.betabeat.com/2011/10/17/the-12-sexiest-techstars-ny-companies-demo-day/#slide8">seemed so smitten</a> with the startup.</p>
<p>Now, <a href="http://www.technewsdaily.com/3403-gidsy-launches-authentic-experiences-marketplace-yorkers.html">TechNewsDaily</a> is reporting that a startup called <a href="http://gidsy.com/">Gidsy</a> out of Berlin's white hot startup scene has opened in New York City to play in SideTour's home turf. Gidsy, which bills itself as an "authentic marketplace for tours, activity, and local events" opened in New York yesterday after launching in Berlin last week.<!--more--></p>
<p>And it already has some support from the Silicon Alley natives. Investor and entrepreneur Mark Birch is hosting a Chinatown Dumpling Tour currently featured on the Gidsy homepage. (N.B.: After Demo Day, Betabeat suggested a similar tour, but in Flushing, to SideTour co-founder Mark Webster. Get on the 7 train, people! It's where all the good food is hiding.)</p>
<p>Both companies allow users to submit a unique potential tour or activity based on their expertise that is then sold on the startup's website.</p>
<p>At least <a href="http://www.crunchbase.com/company/gidsy">according to Crunchbase</a>, Gidsy has yet to acquire funding. Sidetour, on the other hand, raised $1.5 million from RRE and Foundry Group and appears to be putting its focus on getting traction in New York before trying to scale to other cities. In such a new niche, Gidsy's entry into the New York scene is, more than anything, proof that the market exists.</p>
]]></content:encoded>
		<wfw:commentRss>http://betabeat.com/2011/11/meet-gidsy-techstarss-sidetour-gets-its-first-competitor-in-the-authentic-experiences-market/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
	
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			<media:title type="html">jhanasobserver</media:title>
		</media:content>

		<media:content url="http://nyobetabeat.files.wordpress.com/2011/11/gidsy.jpg" medium="image">
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		<title>Brad Feld and Jason Mendelson Reveal VCs Traps and Tricks</title>

		<comments>http://betabeat.com/2011/10/brad-feld-and-jason-mendelson-reveal-vcs-traps-and-tricks/#comments</comments>
		<pubDate>Fri, 07 Oct 2011 09:13:01 -0400</pubDate>
					<link>http://betabeat.com/2011/10/brad-feld-and-jason-mendelson-reveal-vcs-traps-and-tricks/</link>
			<dc:creator>Ben Popper</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=18743</guid>
		<description><![CDATA[<p><div id="attachment_18744" class="wp-caption alignleft" style="width: 310px"><a href="http://www.foundrygroup.com/team/"><img class="size-medium wp-image-18744" title="brad feld and jason mendelson" src="http://nyobetabeat.files.wordpress.com/2011/10/brad-feld-and-jason-mendelson.jpg?w=300&h=208" alt="" width="300" height="208" /></a><p class="wp-caption-text">Don&#039;t let their fancy suits fool you.</p></div></p>
<p>"As we say many times in the book, this is not a substitute for hiring a good lawyer," Jason Mendelson said, sitting in a 46th floor conference room at Cooley LLP. "But most venture lawyers suck anyway."</p>
<p>Mr. Mendelson was in town with Brad Feld, his partner at the Foundry Group in Boulder, Colorado, to promote their new book, <a href="http://www.askthevc.com/imavc/">Venture Deals: Be Smarter Than Your Lawyer or Venture Capitalist</a>.</p>
<p>"The thing is, many lawyers who don't specialize in VC will get bogged down in details that don't matter, and that ends up souring a good deal," Mr. Feld added.<!--more--></p>
<p>Babak "Bo" Yaghmaie, a partner in Cooley's venture practice, nodded in assent. "An entrepreneur who doesn't read this book, who doesn't have the sort of basic, 101 understanding of how the process works, probably doesn't deserve to be funded."</p>
<p>The book came out of a series of blog posts that Mr. Feld and Mr. Mendelson wrote entitled the <a href="http://www.feld.com/wp/archives/2005/08/term-sheet-series-wrap-up.html">Term Sheet Series</a>, an attempt to demystify the often complex legalese that surrounds venture funding. What once might have been a one page letter asking to exchange $100,000 for 50 percent of a company is now a dense, eight page legal document filled with terms like <em>drag along rights </em>and <em>pari passu</em>.</p>
<p>"When we first started writing the series, some VCs did object," said Mr. Mendelson. "But fuck 'em. This is a personal thing for us, to help everyone in the ecosystem learn to communicate better. Because while both Brad and I teach some guest classes at universities, most of this stuff can't be learned in school."</p>
<p>The basic maxim of the book is that, setting aside all the turgid legalese in many of today's term sheets, only two things really matter in a funding negotiation: economics and control. "We try and prepare founders for all the pressures that might emerge downstream. If your VC needs to go out a raise a new fund, many of their motivations may change, and you want to understand who's really in control."</p>
<p>As the meeting wrapped up Mr. Feld headed off for a meeting at Tumblr and Mr. Mendelson grabbed a cab down to TechStars. "Founders might find this stuff intimidating, but that's silly," said Mr. Mendelson. "When I teach this stuff at colleges, it's a mix of law students, MBAs and engineers. Typically the engineers finish the material first and end up kicking everyone else's butt."</p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_18744" class="wp-caption alignleft" style="width: 310px"><a href="http://www.foundrygroup.com/team/"><img class="size-medium wp-image-18744" title="brad feld and jason mendelson" src="http://nyobetabeat.files.wordpress.com/2011/10/brad-feld-and-jason-mendelson.jpg?w=300&h=208" alt="" width="300" height="208" /></a><p class="wp-caption-text">Don&#039;t let their fancy suits fool you.</p></div></p>
<p>"As we say many times in the book, this is not a substitute for hiring a good lawyer," Jason Mendelson said, sitting in a 46th floor conference room at Cooley LLP. "But most venture lawyers suck anyway."</p>
<p>Mr. Mendelson was in town with Brad Feld, his partner at the Foundry Group in Boulder, Colorado, to promote their new book, <a href="http://www.askthevc.com/imavc/">Venture Deals: Be Smarter Than Your Lawyer or Venture Capitalist</a>.</p>
<p>"The thing is, many lawyers who don't specialize in VC will get bogged down in details that don't matter, and that ends up souring a good deal," Mr. Feld added.<!--more--></p>
<p>Babak "Bo" Yaghmaie, a partner in Cooley's venture practice, nodded in assent. "An entrepreneur who doesn't read this book, who doesn't have the sort of basic, 101 understanding of how the process works, probably doesn't deserve to be funded."</p>
<p>The book came out of a series of blog posts that Mr. Feld and Mr. Mendelson wrote entitled the <a href="http://www.feld.com/wp/archives/2005/08/term-sheet-series-wrap-up.html">Term Sheet Series</a>, an attempt to demystify the often complex legalese that surrounds venture funding. What once might have been a one page letter asking to exchange $100,000 for 50 percent of a company is now a dense, eight page legal document filled with terms like <em>drag along rights </em>and <em>pari passu</em>.</p>
<p>"When we first started writing the series, some VCs did object," said Mr. Mendelson. "But fuck 'em. This is a personal thing for us, to help everyone in the ecosystem learn to communicate better. Because while both Brad and I teach some guest classes at universities, most of this stuff can't be learned in school."</p>
<p>The basic maxim of the book is that, setting aside all the turgid legalese in many of today's term sheets, only two things really matter in a funding negotiation: economics and control. "We try and prepare founders for all the pressures that might emerge downstream. If your VC needs to go out a raise a new fund, many of their motivations may change, and you want to understand who's really in control."</p>
<p>As the meeting wrapped up Mr. Feld headed off for a meeting at Tumblr and Mr. Mendelson grabbed a cab down to TechStars. "Founders might find this stuff intimidating, but that's silly," said Mr. Mendelson. "When I teach this stuff at colleges, it's a mix of law students, MBAs and engineers. Typically the engineers finish the material first and end up kicking everyone else's butt."</p>
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		<title>Venture Capital Class Warfare: &#8216;The Rich Are Getting Richer&#8217;</title>

		<comments>http://betabeat.com/2011/06/venture-capital-class-warfare-the-rich-are-getting-richer/#comments</comments>
		<pubDate>Tue, 14 Jun 2011 14:06:33 -0400</pubDate>
					<link>http://betabeat.com/2011/06/venture-capital-class-warfare-the-rich-are-getting-richer/</link>
			<dc:creator>Nitasha Tiku</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=9675</guid>
		<description><![CDATA[<p><div id="attachment_9678" class="wp-caption alignleft" style="width: 310px"><a href="http://www.flickr.com/photos/joi/2757536235/"><img class="size-medium wp-image-9678 " title="andreee" src="http://nyobetabeat.files.wordpress.com/2011/06/andreee.jpg?w=300&h=198" alt="" width="300" height="198" /></a><p class="wp-caption-text">Marc Andreessen</p></div></p>
<p>The current wave of IPOs that investors hope will extend from LinkedIn through Groupon and onto Facebook is making some venture capitalists very, very wealthy. But the bonkers bubble money isn't exactly getting spread around.<a href="http://www.bloomberg.com/news/2011-06-14/linkedin-led-web-ipo-boom-separates-venture-capital-haves-from-have-nots.html"> Bloomberg reports</a> that the success of firms like Sequoia, Greylock, Accel, and Andreessen Horowitz, all of whom have equity in the most valuable start-ups, is driving a massive wedge between "the venture-capital industry’s haves and have-nots."<!--more--></p>
<p>LinkedIn's IPO, for example, has already yielded $2 billion in paper profits for backers like Sequoia and Greylock. Groupon hasn't gone public yet, but its top investors like Accel and New Enterprise could end up owning a $5 billion stake. These are accredited private investors we're talking about, so it's not as though the VC-equivalent of the top one percent is making paupers of their competitors. But it is creating vastly disproportionate access to deal flow and capital.</p>
<p>David Schwartz, co-chair of the emerging companies and venture-capital practice at Michelman &amp; Robinson in New York tells <a href="http://www.bloomberg.com/news/2011-06-14/linkedin-led-web-ipo-boom-separates-venture-capital-haves-from-have-nots.html">Bloomberg</a>:</p>
<blockquote><p>“The rich are getting richer, and they’re finding the better products and better companies at better valuations. It’s making it very complicated for second-tier funds.”</p></blockquote>
<p>The drought of IPOs through over the past few years lowered the number of active VC firms. But although the NVCA says fundraising has jumped 76 percent (year-over-year) in the first quarter to $7.1 billion, it might not get funneled toward the recession's "walking dead": firms that are only working with their existing portfolio and lacking cash to make new investments.</p>
<p>Nonetheless, their loss might clear the brush for newer firms like Mike Maple's Floodgate Fund and Boulder's Foundry Group, which was Zynga's first venture investor. These younger firms have the benefit of being on top of newer trends like mobile apps and social networking, entrepreneur Eric Ries tells Bloomberg. Plus, we imagine, they don't have the stench of dashed dreams from the last bubble.</p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_9678" class="wp-caption alignleft" style="width: 310px"><a href="http://www.flickr.com/photos/joi/2757536235/"><img class="size-medium wp-image-9678 " title="andreee" src="http://nyobetabeat.files.wordpress.com/2011/06/andreee.jpg?w=300&h=198" alt="" width="300" height="198" /></a><p class="wp-caption-text">Marc Andreessen</p></div></p>
<p>The current wave of IPOs that investors hope will extend from LinkedIn through Groupon and onto Facebook is making some venture capitalists very, very wealthy. But the bonkers bubble money isn't exactly getting spread around.<a href="http://www.bloomberg.com/news/2011-06-14/linkedin-led-web-ipo-boom-separates-venture-capital-haves-from-have-nots.html"> Bloomberg reports</a> that the success of firms like Sequoia, Greylock, Accel, and Andreessen Horowitz, all of whom have equity in the most valuable start-ups, is driving a massive wedge between "the venture-capital industry’s haves and have-nots."<!--more--></p>
<p>LinkedIn's IPO, for example, has already yielded $2 billion in paper profits for backers like Sequoia and Greylock. Groupon hasn't gone public yet, but its top investors like Accel and New Enterprise could end up owning a $5 billion stake. These are accredited private investors we're talking about, so it's not as though the VC-equivalent of the top one percent is making paupers of their competitors. But it is creating vastly disproportionate access to deal flow and capital.</p>
<p>David Schwartz, co-chair of the emerging companies and venture-capital practice at Michelman &amp; Robinson in New York tells <a href="http://www.bloomberg.com/news/2011-06-14/linkedin-led-web-ipo-boom-separates-venture-capital-haves-from-have-nots.html">Bloomberg</a>:</p>
<blockquote><p>“The rich are getting richer, and they’re finding the better products and better companies at better valuations. It’s making it very complicated for second-tier funds.”</p></blockquote>
<p>The drought of IPOs through over the past few years lowered the number of active VC firms. But although the NVCA says fundraising has jumped 76 percent (year-over-year) in the first quarter to $7.1 billion, it might not get funneled toward the recession's "walking dead": firms that are only working with their existing portfolio and lacking cash to make new investments.</p>
<p>Nonetheless, their loss might clear the brush for newer firms like Mike Maple's Floodgate Fund and Boulder's Foundry Group, which was Zynga's first venture investor. These younger firms have the benefit of being on top of newer trends like mobile apps and social networking, entrepreneur Eric Ries tells Bloomberg. Plus, we imagine, they don't have the stench of dashed dreams from the last bubble.</p>
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