David B. Lerner: Startups, Not Bailouts Create New Jobs? Wait, So the Emperor Has No Clothes?

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This is part of my Series on Entrepreneurial Culture.

People in the start-up and investment community understand from first-hand experience that when it comes to job creation- start-ups are where it’s at. It’s also great to have organizations like the Kauffman Foundation, (that actually study, support and promote entrepreneurship), around to back this up with some hard stats. Below, for example, is the staggering reality about new job creation in this country:

“Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less…” (Kauffman Foundation)

But here’s the problem: People who are not in the start-up, investment or tech scene, (read: the majority of the American electorate), through no fault of their own, do not for the most part realize this fact. This is probably because much of the mainstream press does not focus on or cover this reality.  I see very little emphasis on how critical talented entrepreneurs are to the growth of our economy and to job creation.

No, this man is not trying to do the squeezing head trick. He is indicating how much the public appreciates what startups are doing for creating new jobs in the grand scheme of things.

The Art of the Introduction: Top Ten Tips

I’ve been a VC for about 4 years now, and I do a lot different things in my job. But I’d have to say that making introductions, asking for them, and being introduced is something I do every single day. In fact, I looked through the 12,403 emails I sent in 2009, and 2,603 or over 20% contained the word “intro” or “introduce” or “introduction.” Along the way I’ve noticed there are some best practices, so I’ve put together a Top Ten list here from what I’ve learned.

1. SUBJECT LINE MATTERS This one is a big one – DO NOT use just “Introduction” or “Intro” alone as email subject line. That’s the equivalent of sending a resume titled “resume.doc” – it says nothing. You should have the names and company names of both people being introduced in the email subject line.

2. WHAT’S IN IT FOR THE TARGET? Ever hear the line about everyone’s favorite radio station? WIFM – What’s In it For Me. WHY should the Target care about this introduction? Put it in the first sentence or paragraph. Another way to look at it – is there any evidence in your email introduction that you know anything about the Target whatsoever?

This is a list of basic things to do or not do when introducing people via email. At least for me, I am having to do this more and more, so it is a helpful short list to keep in mind.

Don’t blow up your Series A term sheet by over-optimizing terms | A View from the Valley

Let’s say you’re a first-time entrepreneur and you’ve hit on an idea that is getting some traction and attracting the attention of VCs.  You do some research online to familiarize yourself with customary terms and finally get a term sheet from a reputable VC at a valuation you think is fair.  Next comes the fun part – negotiating the term sheet.  Negotiating term sheets should be straightforward, but sometimes when you combine first-time entrepreneurs with inexperienced counsel, the results can be toxic.

This is a good reference on where to start when dealing with negotiating term sheets.