Tuesday, February 22, 2011

How Many Investors Is Too Many?

Editor?s Note: This is a guest post by Mark Suster, a 2x entrepreneur who has gone to the Dark Side of VC. He started his first company in 1999 and was headquartered in London, leaving in 2005 and selling to a publicly traded French services company. He founded his second company in Palo Alto in 2005 and sold this company to Salesforce.com, becoming VP of Product Management. He joined GRP Partners in 2007 as a General Partner focusing on early-stage technology companies. Read more about Suster at Bothsidesofthetable and on Twitter at @msuster. Lately I have seen a number of deals announced on TechCrunch in which five or more different VCs were participating in the deal. This always makes me chuckle because in my first company we had five investors in our first round and we picked up five more before we finally sold the company. In my second company I had only five investors.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/YNTuOVyp5DU/

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