Rules of the VC Game, Part 2: The Size of the Fund Matters

Of the state’s 22,000 practicing attorneys, 19,000 work in law firms with 17 or fewer lawyers, according to a Washington Bar Association estimate. More than 60 percent work in firms with five or fewer lawyers. Of the 3,000 that work in larger law firms, the vast majority work in three offices:  the Office of the Attorney General for the State of Washington, K&L Gates, or Perkins Coie. If you are a tech or biotech startup and your inclination is to work...

When you first form your business chances are you will have only one class of stock, common stock. Sure, you may have different series of stock within that class, say an F Series of stock that gives the founders better voting rights, for example, but you will only have common stock. There are many reasons to stick to just common stock, such as forming your new business as an S corporation (tax law only permits one class of stock in...

According to Erik Wesner’s new book, Success Made Simple:  An Inside Look at Why Amish Businesses Thrive, over 95% of Amish businesses are around five years after startup.  That’s compared to 80% for nationwide entrepreneurship program alumni and the nationwide average of 50%.  So what is it that the Amish are doing right? Well, the “secrets” of their success aren’t really all that surprising: 1.  Hard work and long hours; 2.  Strong faith and values; 3.  Family commitment to the business; 4.  Humble leadership; and 5. ...

All of us have read the statistics about the percentage of startups that fail (and the even smaller percentage that receive venture financing).  But why is that?  Well, there are two reasons IMHO:  Lack of focus and bad decisions. 1. Lack of Focus. How many times have you sat through a discussion with a friend or colleague who walks you through their grand idea for a new product or service and the story keeps going on and on and on? ...

Many of my friends, neighbors, and acquaintances ask me about how to find a good attorney in practice areas in which I do not practice (like family law, estate planning, and defense). The conversation typically turns into some form of referral to someone I know and trust and whom I believe can assist. I suspect many of you out there do the same thing, that is, ask a friend if they have a good lawyer to refer you...