Blog: The Ripple
We love what we do, so ClearCreek writes and publishes pieces for a somewhat irregular blog about emerging companies and the capital markets. Or we did for a while anyway, then we did less, and apparently we stopped entirely. But we kept the old posts below. Any errors are ours exclusively while the occasional sharp insight is probably borrowed. We hope you find them of interest, and we always welcome feedback.
To Tweet or Not To Tweet?
Valuations of Facebook, Twitter, and other social media companies have been constructed, in part, around the idea that their platforms will serve as facilitators for commerce – particularly for small businesses…
Billionaire Hot or Not?
Already the subject of a book or two, the origins of Facebook are now providing enough soap for a full-scale opera. A new article charges that FB founder Mark Zuckerberg hacked into different accounts…
Seed is the new “A”
With the traditional venture model under assault, there is an increased focus on seed-stage funding. Back in September we noted the attempt to create a standardized Series A term sheet. Now there is similar stakeholder interest…
What’s the ROI on that Pound of Flesh?
Three young guns – and not a detained Nigerian prince among them – are currently offering investors a chance to invest cash now in return for a percent of future income. One, a 26-year-old Stanford grad, has even priced it out: 6% of future income for…
Alternative Capital Sources
With many small businesses losing their lines of credit, coupled with the demise in small business lending from commercial banks, alternate sources of capital such as purchase-order financing are on the rise,…
Reading List: The Patience of Jobs
Perhaps the most amusing and unscripted nugget to emerge from the Apple aura is the reissue of a 1985 interview with a 29-year-old Steve Jobs. In, um, Playboy magazine. It’s refreshing to revisit the early incarnation of Apple…
The Acquisition Option
With venture funding down and the market for IPOs still anemic — just eight venture-backed companies so far this year, compared to an annual average of 64 from 2003-2007 — emerging companies hoping for an exit are increasingly…
Pay to Pitch
An online brouhaha broke out over angel groups that charge startups to pitch potential investors. Led by media entrepreneur Jason Calacanis, and with an echo from Fred Wilson, soon a full chorus…
Founder Liquidity
And further on the topic of increased liquidity, the always-observant Mark Suster has a terrific piece on why company founders should be able to take some equity off the table once their firm has reached reasonable milestones. His point is simple, but often overlooked:…
The Future of Term Sheets
The predictable pendulum swing of harsher terms during a buyer’s market lead to a lively online discussion on the future of the term sheet. A dialogue between influential bloggers — entrepreneurs and venture capitalists alike…
The “Promote”
Flybridge’s Jeff Bussgang has a nice blog piece where he coins a new word in the venture lexicon: the “promote” (not the Prestige). Entrepreneurs too often fixate on their pre-money valuation (the “pre”), instead of focusing on what…