WANT TO BE AN ENTREPRENEUR? THINK LIKE A PILOT

#1?WANT TO BE AN ENTREPRENEUR? THINK LIKE A PILOT

While you don’t need an IQ in the top one percent of all humans to be a pilot, you must have an interest in learning a lot about a lot. It’s the same for entrepreneurs. Starting a company and flying a small plane have elements of risk that make them adrenaline-producing, and doing both activities brings immense satisfaction that many other activities can’t touch.?There are three critically important traits entrepreneurs and pilots must have.

#2?SKIN IN THE VENTURE CAPITAL GAME

“Skin in the game” alludes to the vested interest of the VC manager in his fund. As private equity and VC funds are invariably structured as partnerships, the manager’s participation in the equity at risk is determined by the commitment of the general partner of the fund as a share of total commitments. Historically, GP commitments tended to be 1% for tax reasons,?as this was the minimum requirement set by the IRS to get favorable treatment as a fund.

#3?UNLOCKING GROWTH WITH VENTURE DEBT?

In the world of startups, there are typically two ways to finance a company: equity financing and debt financing. While equity financing is often the first choice for many entrepreneurs, particularly at the early stage, venture debt is quickly becoming a popular option for startups looking for a more flexible and cost-effective financing solution to extend their cash runway in addition to their equity,?especially during an environment of lower valuations.

#4?TERMS VCS CARE ABOUT THE MOST IN STARTUP FUNDING NEGOTIATIONS

If you’re reading this, chances are you’re interested in startups and entrepreneurship. And if you’re interested in those things, you’ve probably heard of VCs. VCs invest in startups, hoping to make a big return on their investment when the startup takes off. But here’s the thing — getting funding from a VC isn’t as simple as asking nicely. There are negotiations, agreements, and lots of terms and?phrases that might be unfamiliar to those new to the startup game.?

#5 THE STATE OF B2B MARKETPLACES IN EUROPE

Since 2015, global online B2B marketplaces have grown 8.6x — and VC investment into them has grown by 4.5x since 2017. But recently there’s also been a pandemic, a downturn, geopolitical instability and other market shifts. The B2B market has shown resilience in the slowdown. So where do European B2B marketplaces stand today —?and are they on track to match their B2C counterparts??

If you enjoyed this newsletter,?forward it to a friend. If you are a startup with a founder from Europe or Israel looking for financing, whether it is Seed, Series A or later,?submit your pitch deck.?

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