Published in the San Diego Union-Tribune, January 9, 2023
by Neil Senturia
I have been replaced.
Not just fired like a Twitter employee, not just pushed to the sidelines like the gas-guzzling car by the electric vehicle, not just put out to pasture because I can’t remember my last name. No sir, I have met the future, and there is no country for old columnists with ChatGPT — Open AI’s new artificial intelligence chatbot.
I have been writing about entrepreneurship, startups, venture capital and behavior economics for more than 11 years for this paper, but it is now time to meet the newest writer for I’m There For You Baby.
Raising money from a venture capitalist can be a challenging process, but it can also be a great way to fund the growth of your startup. Here are some steps you can take to increase your chances of success:
1. Develop a solid business plan: Venture capitalists want to see a clear vision for your company and how it will generate revenue. Make sure you have a solid business plan that outlines your target market, competitive advantage and financial projections.
2. Build a strong team: Venture capitalists often invest in the team as much as the idea. Show that you have a diverse and experienced team that is capable of executing your vision.
3. Network and make connections: Venture capitalists typically invest in companies through their personal and professional networks. Attend industry events, join startup accelerators or incubators, and reach out to potential investors to build relationships and increase your visibility.
4. Understand the venture capital process: Research the venture capital firms that are a good fit for your company, and understand their investment criteria and process. Be prepared to pitch your company and answer tough questions during the due diligence process.
5. Be persistent: Raising money from a venture capitalist can be a long and competitive process. Stay focused and keep working to improve your business and pitch, and don’t be discouraged if you face setbacks or rejections.
I hope these tips are helpful. Good luck with your fundraising efforts!
Alright, now that we have an investor, how much of the company are we willing to give away?
Pre-money valuation is a term used to describe the value of a company before it receives any outside investment. It is typically used in the context of venture capital or private equity financing, where an investor is considering making an investment in a startup or small business. The pre-money valuation is used to determine the ownership stake that the investor will receive in the company in exchange for their investment.
For example, if a company has a pre-money valuation of $10 million and an investor agrees to invest $2 million in the company, the investor will receive a 20 percent ownership stake in the company. The post-money valuation of the company, which is the value of the company after the investment has been made, would be $12 million.
Pre-money valuation can be determined using a variety of methods, including comparable company analysis, discounted cash flow analysis, and the venture capital method. The specific method used will depend on the circumstances of the company and the investment being considered.
Now, let’s be honest. While the information appears to be relatively accurate, in my opinion, it seems to lack the panache, wit and charm of yours truly. But in fairness, pretty damn good for an AI software bot from Silicon Valley.
Artificial intelligence is an exciting and dangerous new realm. It feels a little like nuclear fusion — powerful, valuable and a bit untamed. Sam Altman, CEO of Open AI, says, “As ChatGPT’s accuracy and data improve, we will have the writing equivalent of a scientific calculator.”
For what it is worth, I learned to use a slide rule in high school. Then I learned how to use a Hewlett Packard RPN (reverse polish notation) 12C calculator. Now I ask Siri, and she calculates my mortgage payment at the speed of light.
All I’m saying is be careful what you wish for because you may get it. I am not one to put my head in the sand, but the Common Core Standards for high school education no longer even require a student to be proficient in cursive writing. Who needs that? We have DocuSign.
Rule No. 744:
Wisdom is different than knowledge.