venture capital

Choosing an investor: 5 tips from 5 entrepreneurs

Investors rarely make or break a startup, but they can make life a hell of a lot easier or harder for an entrepreneur. That's why entrepreneurs need to put some thought into who they want to add to their team, instead of taking the first money that's offered to them.

But how do you choose the right investors for your startup?

There are hundreds of factors to consider, but some stand out more than others. While anybody can give you money, only a few can give you the sage-like advice you need to succeed. And while adding a … Read more

Venture capital funding for Q1 slowest since 2003

If the first quarter is any gauge for U.S. venture capital funding, there's not a lot to look forward to for the rest of the year.

The number of funds that raised money for venture capital in the first quarter of 2013 was fewer than any other quarter in the last 10 years, according to a new report by Thomson Reuters and the National Venture Capital Association (NVCA).

Thirty-five funds contributed to venture capital fundraising last quarter, which is a 14 percent decrease in the number of funds from the final quarter of 2012. The slowest quarter in … Read more

Paul Allen's VC firm to open new office in Silicon Valley

Microsoft co-founder Paul Allen's venture-capital firm is opening an office in Silicon Valley.

Vulcan Capital, which has invested in a wide array of companies, including DreamWorks Animation and Redfin, has decided to open an office in Palo Alto, Calif., the company has confirmed to Reuters. The office, which will open at some point in the next few weeks, will focus on technology, Internet, and software companies. It will chiefly invest in middle- and late-stage startups, as well as pre-IPO deals.

"We are going to expand our footprint in broad tech investments, we'd like to get more resources, … Read more

VC Bill Gurley defends investment in money-losing Snapchat

Bill Gurley, a longtime Silicon Valley investor with Benchmark Capital, today defended his firm's investment in Snapchat, the social-media app designed to let users send pictures and videos that self-destruct after a set time.

Gurley, who spoke on a panel of venture capitalists at Goldman Sachs' annual Technology and Internet Conference in San Francisco, was asked why he'd invest in a startup with no revenue model. Benchmark led a $13.5 million investment in the app, valuing Snapchat at $60 million to $70 million, which was first reported by The New York Times.

"If you look at … Read more

Samsung's Open Innovation Center seeks startup juice

Samsung yesterday announced the launch of a new Open Innovation Center in Silicon Valley with an aim of connecting the conglomerate with the latest and greatest software ideas.

David Eun, Samsung Electronics executive vice president and leader of the Open Innovation Center, announced its opening yesterday at the D: Dive Into Media event. He told All Things Digital's Kara Swisher that while the company's hardware efforts are going well, the Open Innovation Center is designed to deliver a "thoughtful integration" of hardware with software.

According to Eun, the Open Innovation Center is based on four ideas:… Read more

Nest raises $80 million for thermostat business -- report

Nest, the next-generation thermostat company focused on saving energy, has closed a major round of funding, according to a new report.

Nest has raised $80 million on a valuation of $800 million, GigaOm is reporting today, citing people who claim to have knowledge of the deal. Google Ventures led the funding round. Venrock, another venture-capital firm, also participated in the round, according to GigaOm.

The Nest Learning Thermostat has proven to be a huge hit. In October, CNET Reviews Editor-in-Chief Lindsey Turrentine reviewed the Nest and gave it a full five stars out of five, or "spectacular," rating. … Read more

Nokia injects $250 million into venture funding

Nokia has committed another $250 million to its venture funding arm, Nokia Growth Partners, the company announced today.

With that sum, Nokia Growth Partners members will be able to invest in "high potential businesses within the mobile ecosystem." The venture capitalists will focus their efforts in the U.S., Europe, and Asia.

China could be an important opportunity for Nokia, so the company has expanded its presence there by appointing former AMD China president David Tang as managing director. Lu Guo, former Keystone Ventures vice president, will act as principal in China.

Nokia's latest fund is its … Read more

Lawsuit alleges that stolen ideas underpin Pinterest

Pinterest and one of its early investors have been sued by a man who alleges that the investor nicked his ideas -- including the concept of boards -- and handed them to the now hugely popular Web site.

The suit alleges that the plaintiff, Theodore F. Schroeder, of Ocean City, N.J., developed a site called RendezVoo, which started as a place where users could share their locations but evolved into a site where people "meet to share opinions, views, items, and tastes on a variety of subjects -- product, services, events, politics, economics -- nearly anything of human … Read more

Andreessen explains how Steve Jobs, Tim Cook are different

Famed Silicon Valley venture capitalist Marc Andreessen believes there is one major difference between Tim Cook and Steve Jobs: a desire for market share.

Speaking last night at an event in New York City, Andreessen said that Jobs' "single playbook" was to "invent a new product category, start with 100 percent market share, and then every day that goes by, lose market share until some terminal outcome."

Andreessen pointed to the Macintosh computer, the iPod, the iPhone, and the iPad as examples of that strategy. He noted -- correctly so -- that while Apple might own … Read more