Jones: Hard truth about angel investing

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recently contributed piece, “Jones: Hard truths about angel investing” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:

“Angel investing is a critical part of the high impact startup world, particularly outside of the big venture capital centers. A good portion of Wisconsin startup success stories achieved liftoff with critical assistance from angel investors and their capital.

But what about the angel investors themselves? How does angel investing work for them?

Well, you don’t have to look very hard to find blogs, books and speakers extolling the virtues of angel investing for the angels. And a lot of them make a pretty good case that the angel investing community makes a nice profit for its efforts. A good case, but also a misleading case.”

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Freedom is Just Another Word for Nothing Left to Lose — sung by Janis Joplin, “Me & Bobby McGee”

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recently contributed piece, “Freedom is Just Another Word for Nothing Left to Lose – sung by Janis Joplin, “Me & Bobby McGee” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:

High impact entrepreneurs come to the arena with a wide range of handicaps their bigger, established competitors largely don’t face.

Startups are notoriously short of capital, talent and time. They typically compete with better-armed, established businesses with ample capital and human resources, and substantial brand equity. It is a wonder, to me, that even a small portion of startups succeed.

But they do. And so you have to ask how. How can small, undercapitalized startups with nothing but ideas and small overmatched teams, in the space of a few short years, not just compete in, but win sizeable markets. They must, it seems to me, have some advantages; some assets that, when properly deployed, more than make up for their obvious liabilities. What are those assets?

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First Billion-Dollar Exit for Crowdfunding. Well, Sort Of.

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recently contributed piece, “First Billion-Dollar Exit for Crowdfunding. Well, Sort Of.” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:

Enthusiasts for the brave new world of equity crowdfunding got some good news recently when various media outlets, including Forbes reported on the first billion-dollar exit by a crowdfunded startup. And so the crowdfunding revolution rolls on: power to the people.”

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What if the Age of the Unicorn is Over?

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recently contributed piece, “What if the Age of the Unicorn is Over?” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:
The years 2014 and 2015 were good to high impact entrepreneurs. VC investments soared, and pricing and other financing terms were as friendly as they have been since the dot-com bubble burst.

It’s the age of the Unicorn. And conventional wisdom, supported by some recent data (declines in venture funding, particularly startup and early stage capital, and the “de-horning” of several Unicorns) suggests that it is coming to an end. What will that mean for high impact startups in 2016?”

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Tumble in Start-up Valuations May Lead to More Down Rounds

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recently contributed piece, “Tumble in Start-up Valuations May Lead to More Down Rounds,” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:

The last couple of years have been pretty good for entrepreneurs seeking venture capital. Valuations have been going up, and financing terms have been loosening up. Something like 150 so-called “Unicorns” – VC-backed private companies valued at $1 billion and up – have débuted. Alas over the last couple of months a handful of those Unicorns have seen their valuations plummet well below $1 billion. Conventional wisdom tells us the age of the Donkey is nigh.

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Making Lemonade

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recently contributed piece, “Making Lemonade,” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:

“There’s been a lot of fretting lately about funding reductions for the UW system, including the flagship campus in Madison. There is no doubt that anything that reduces the real or perceived quantity and quality of either the research or educational output of the UW system has negative implications for Wisconsin’s economy. How much is a debate I won’t jump into. Instead, I’ll argue that the law of unintended consequences works both ways: that in some cases, including this one, the unintended consequences can be positive.

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Cash Musical Chairs

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, a Milwaukee Journal Sentinel blog covering start-ups and other Wisconsin technology news. Paul’s most recently contributed piece, “Cash Musical Chairs,” can be found under their Business Tab in the Business Blog section: Click here to view his latest blog.

A short excerpt can be found below:

Recently, I wrote about how growth drives valuations and exits in Silicon Valley and a select few other major venture capital centers, while profits tend to drive the same (albeit not nearly as far) in flyover country. Today, a riff on that same theme; to wit, at what point does driving net cash burn below zero trump, as a guiding metric, growing monthly recurring revenue faster? Click here to read more.