{"id":6517,"date":"2018-11-13T12:54:57","date_gmt":"2018-11-13T12:54:57","guid":{"rendered":"https:\/\/www.austinshortfilm.com\/blog\/venture-capital-firms-are-not-in-the-business-of-taking-risks\/"},"modified":"2018-11-13T12:54:57","modified_gmt":"2018-11-13T12:54:57","slug":"venture-capital-firms-are-not-in-the-business-of-taking-risks","status":"publish","type":"post","link":"https:\/\/www.austinshortfilm.com\/tech\/venture-capital-firms-are-not-in-the-business-of-taking-risks\/","title":{"rendered":"Venture Capital Firms Are NOT in the Business of Taking Risks"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"480\" height=\"270\" src=\"\/\/www.youtube.com\/embed\/QgDQAhMmhm0\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>#startups #venturecapital #businessadvice<br \/>\nhttp:\/\/cenkuslaw.com<br \/>\nhttp:\/\/braatenwoods.com<\/p>\n<p>Many entrepreneurs I&#8217;ve come across have the impressions that venture capitalists are in the business of taking risks. Simply put, that is not true.<\/p>\n<p>Venture capital firms are in the business of mitigating risk relative to reward. The money a VC invests into a business is never the first money into the business &#8211; that&#8217;s founder then friends and family money.<\/p>\n<p>Venture capitalists get involved after the team and mission of the startup have been established &#8211; in the Seed and Series A, Series B and Series C stages, and at each of those stages the business has been considerably de-risked from subsequent stages.<\/p>\n<p>Ultimately, if you&#8217;re looking to approach a venture capitalists to raise money for your startup, it&#8217;s important to understand that they&#8217;re looking to invest in opportunities that are primed to press on the gas, not ventures with a fanciful idea and a prayer of knocking it out of the park.<\/p>\n<p>As always, watch the video and feel free to reach out with any questions. Leave a comment or contact me.<\/p>\n<p>_____________________________________________<\/p>\n<p>For a deeper dive into  and other legal issues vital to the success of your deals and your business, visit me at:<br \/>\nhttp:\/\/www.cenkuslaw.com<\/p>\n<p>Just starting up? Check this out for my advice on startup success: http:\/\/www.thestartupshepherd.com.<\/p>\n<p>You can also reach me at:<\/p>\n<p>https:\/\/www.linkedin.com\/in\/brettcenkus<\/p>\n<div class=\"newsmag-video-container\"><a class=\"twitter-timeline\" data-width=\"600\" data-height=\"900\" data-dnt=\"true\" href=\"https:\/\/twitter.com\/bcenkus?ref_src=twsrc%5Etfw\">Tweets by bcenkus<\/a><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<p>http:\/\/www.cenkuslaw.com<\/p>\n<div class=\"newsmag-video-container\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"1cA2rFcYXF\"><p><a href=\"http:\/\/www.cenkus.com\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" src=\"http:\/\/www.cenkus.com\/embed\/#?secret=1cA2rFcYXF\" data-secret=\"1cA2rFcYXF\" width=\"600\" height=\"338\" title=\"&#8220;Home&#8221; &#8212; Brett Cenkus\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/div>\n<p>_______________________________________________<\/p>\n<p>About me:<\/p>\n<p>My 20+ years of experience in business finance, business law and entrepreneurship have led me to believe that numbers and logic are awesome tools, but understanding human nature and emotions is the first step to business success. <\/p>\n<p>The Cenkus Law Firm provides services related to mergers &#038; acquisitions, general business issues and startups, including founders&#8217; agreements and fundraising. I also consult with entrepreneurs and have invested my own capital as an angel investor.<\/p>\n<p>From 2010-2013 I served as Chief Legal Counsel of a publicly-traded international oilfield services company. From 2001 to 2006, I and a partner founded and built Paragon Residential Mortgage. Paragon was sold to Bridge Investments in 2006. <\/p>\n<p>I hold a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania. <\/p>\n<p>Now, I live in Austin, TX with my wife and two kids. I enjoy reading, running, classic movies, great food and wine and some great American football.<\/p>\n<p>For my advice about startup success, check out www.thestartupshepherd.com.<\/p>\n<p>Brett A. Cenkus is The Startup Shepherd\u2122. He has 20+ years of experience in business finance, business law and entrepreneurship. Brett believes that numbers and logic are awesome tools, but understanding human nature and emotions is the first step to business success. <\/p>\n<p>The Cenkus Law Firm provides services related to mergers &#038; acquisitions, general business issues and startups, including founders\u2019 agreements and fundraising. Brett also consults with entrepreneurs and invests his own capital as an angel investor.<\/p>\n<p>From 2010-2013 he served as Chief Legal Counsel of a publicly-trade international oilfield services company. From 2001 to 2006 he and a partner founded and built Paragon Residential Mortgage. Paragon was sold to Bridge Investments in 2006. <\/p>\n<p>Brett holds a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania. <\/p>\n<p>Brett lives in Austin with his wife, Cathryn, and daughter, Elle. He enjoys reading, running, classic movies, great food and wine and NFL football.<\/p>\n<p>You can also reach me at:<\/p>\n<p>https:\/\/www.linkedin.com\/in\/brettcenkus<br \/>\nhttps:\/\/twitter.com\/BrettCenkus<\/p>\n<div class=\"newsmag-video-container\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"1cA2rFcYXF\"><p><a href=\"http:\/\/www.cenkus.com\/\">Home<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" src=\"http:\/\/www.cenkus.com\/embed\/#?secret=1cA2rFcYXF\" data-secret=\"1cA2rFcYXF\" width=\"600\" height=\"338\" title=\"&#8220;Home&#8221; &#8212; Brett Cenkus\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/div>\n<p>http:\/\/www.cenkuslaw.com<\/p>\n<h3>More info on Venture Capital Firms Are NOT in the Business of Taking Risks<\/h3>\n<div class=\"ss-local-rss\"><div class=\"rss_header\"><h2><a href=\"https:\/\/cn.bing.com\/news\/search\/?q=Venture+Capital+Firms+Are+NOT+in+the+Business+of+Taking+Risks&amp;qft=sortbydate%3D%221%22&amp;format=rss\" rel=\"nofollow\" class=\"rss_title\">Venture Capital Firms Are NOT in the Business of Taking Risks - BingNews<\/a><br \/><span class=\"rss_description\"> Search results<\/span><\/h2><\/div><ul>\n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fcrypto-venture-capital-funding-hits-one-billion-april&amp;c=2423948549804074780&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tCrypto venture capital funding hits $1B for second straight month\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Blockchain and cryptocurrency firms received $1 billion from venture capital firms in April for the second month running.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fcoinjournal.net%2Fnews%2Fcrypto-vc-funding-tops-1b-for-second-consecutive-month%2F&amp;c=8739126848425160581&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tCrypto VC funding tops $1B for second consecutive month\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>While April\u2019s total amount raised from venture capital investors did not ... top VC firms. Please be aware that some of the links on this site will direct you to the websites of third parties, some of ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Finc42.com%2Fresources%2Fkey-strategies-for-mediatech-startups-to-attract-venture-capital-funding%2F&amp;c=2386027837754647536&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tKey Strategies For Mediatech Startups To Attract Venture Capital Funding\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Time spent online is increasing all over the world. India has one of the highest usage figures, with over five hours online per day ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fseekingalpha.com%2Farticle%2F4689567-massif-capital-q1-2024-letter-to-investors&amp;c=11796283778521056788&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tMassif Capital Q1 2024 Letter To Investors\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Through the end of Q1 2024, the Massif Capital Real Assets Strategy was up 0.96% net of fees, with gains from both the long and short books. Click here to read more.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fwww.msn.com%2Fen-us%2Fmoney%2Fcompanies%2Ftrinity-capital-inc-nasdaqtrin-q1-2024-earnings-call-transcript%2Far-AA1o6MHn&amp;c=1276358146088950473&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tTrinity Capital Inc. (NASDAQ:TRIN) Q1 2024 Earnings Call Transcript\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Q1 2024 Earnings Call Transcript May 1, 2024 Trinity Capital Inc. misses on earnings expectations. Reported EPS is $0.52 EPS, expectations were $0.55. Trinity Capital Inc. isn\u2019t one of the 30 most ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fwww.nytimes.com%2F2024%2F05%2F03%2Fopinion%2Famerican-economy-global-investors.html&amp;c=5354034781713874755&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tWhat Would Happen if the U.S. Suddenly Seemed Like a Risky Investment?\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>By Tedeschi\u2019s estimates, adjusted for inflation, if the United States came to be perceived as carrying a similar risk for investors as Britain, after 10 years, average stock-market wealth per ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fwww.bankingdive.com%2Fnews%2Fsvb-financial-sells-venture-capital-arm-pinegrove-vc-kosturos-private-equity%2F715111%2F&amp;c=14247264769119966391&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tSVB to sell venture-capital arm to investment firm Pinegrove\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>SVB Capital will be acquired for a combination of cash and \u201cother economic consideration,\u201d the companies said, without giving details on the deal\u2019s value.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fwww.insidermonkey.com%2Fblog%2Fhercules-capital-inc-nysehtgc-q1-2024-earnings-call-transcript-1296368%2F&amp;c=12756904532349042481&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tHercules Capital, Inc. (NYSE:HTGC) Q1 2024 Earnings Call Transcript\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>These forward-looking statements are not guaranteed of future performance ... to be able to benefit from a new business environment that we believe is as strong as we have seen in several years now.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fcoinjournal.net%2Fnews%2Fpantera-capital-invests-in-ton-eyes-support-for-crypto-adoption-via-telegram%2F&amp;c=7411836489818149336&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tPantera Capital invests in TON, eyes support for crypto adoption via Telegram\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Pantera Capital has announced an undisclosed investment in The Open Network (TON) Blockchain, the layer-1 network powered by Toncoin (TON).<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fwww.washingtonexaminer.com%2Frestoring-america%2Ffaith-freedom-self-reliance%2F2988620%2Fbidens-capital-gains-tax-hike-cripple-innovation-economic-growth%2F&amp;c=8023400327360271803&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tBiden\u2019s capital gains tax hike would cripple innovation and economic growth\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>Unfortunately, President Joe Biden\u2019s plan to significantly raise taxes on capital gains, which are so often the reward for taking such risks ... and flexibility of many companies. The capital gains ...<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            \n            <li>\t\t\t\t<span class=\"title\">\n\t\t\t\t\t<a href=\"http:\/\/www.bing.com\/news\/apiclick.aspx?ref=FexRss&amp;aid=&amp;tid=6639bad08e014753a67aeb10b8021c88&amp;url=https%3A%2F%2Fwww.fastcompany.com%2F91117516%2Fafrica-climate-startups-funding-gap-experts&amp;c=4812243988179582498&amp;mkt=en-us\" rel=\"nofollow\">\n\t\t\t\t\t\tAfrican climate startups have a huge funding gap. Here\u2019s what experts say\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t<div>\n\t\t\t\t\t<p>The money raised by climate tech startups last year was more than a third of all funds raised by startups in Africa in 2023.<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/li>\n            <\/ul> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>#startups #venturecapital #businessadvice http:\/\/cenkuslaw.com http:\/\/braatenwoods.com Many entrepreneurs I&#8217;ve come across have the impressions that venture capitalists are in the business of taking risks. Simply put, that is not true. Venture capital firms are in the business of mitigating risk relative to reward. The money a VC invests into a business is never the first money [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6518,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[9],"tags":[173,1476,3061,2259,2053,2869],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/www.austinshortfilm.com\/wp-content\/uploads\/2018\/11\/QgDQAhMmhm0.jpg","_links":{"self":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts\/6517"}],"collection":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/comments?post=6517"}],"version-history":[{"count":0,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/posts\/6517\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/media\/6518"}],"wp:attachment":[{"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/media?parent=6517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/categories?post=6517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.austinshortfilm.com\/wp-json\/wp\/v2\/tags?post=6517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}