ReadWriteWeb

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

The amount of capital you will need depends on what kind of venture you plan to build. You may need to go no further than the first rung of the ladder. You might be able to build a very good business that meets all of your financial needs without raising a dime from anybody. You might also strike it lucky and get phenomenal growth without needing capital. But being under-capitalized is a big source of venture failure. So you need to assess how much capital you'll need. Your chances of realistically getting that capital should factor into your planning. If you can reach only the lower rungs of the ladder, don't plan a business that needs higher levels out of your reach. If your first venture is a success, the other steps on the ladder will be more easily accessible if you decide to pursue another venture.

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

Should you set up an LLC, C Corp, or S Corp. And in what state should you register? These are some of the questions we'll consider in our overview of company registration choices for your startup.

We recently spoke with Claudia Fan Munce of IBM's Venture Capital Group. IBM doesn't invest equity in startups; rather, this small group within IBM works with 120 of the world's leading VCs to give their startups access to IBM technology and, more importantly, IBM's customers in 170 countries. Since forming in 2001, the IBM Venture Capital Group has nurtured close to 1400 of these relationships. So, it is (1) oriented around later-stage ventures, and (2) focused more on B2B and enterprise ventures than consumer ones.

This is how it's supposed to work. A team of super-smart engineers/entrepreneurs comes up with a radical plan to disrupt a huge industry. It builds its technology, gets traction, and, in a few years, sells the venture for over a billion dollars. What do these super-smart engineers do with their new-found wealth? They create a VC fund to invest in early-stage deals with which other entrepreneurs/engineers can disrupt very large industries. Their fund has been investing since 2003 and has a portfolio of around 30 companies.

Meet Ambient Sound Investments (ASI).

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

There are three ways to get a great URL. The first is with magical inspiration: that perfect and available name comes to you in the shower. The second is with a ton of money, by buying an existing domain. The third (if inspiration and money are lacking) is with the process outlined below, which may yield a workable name. These days, you start with the URL and then check that some variation of the company name is available (for registration purposes). That part is relatively easy.

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

This is part of your pre-financing team-building. The term "Board" may be confusing here. This is not a Board Of Directors: that is the subject of a later chapter. Nor is it a couple of your buddies. Nor is it someone who gives you one specific bit of advice. Also, don't look at this as a brand-building exercise by throwing big names on your website. Look for people who really complement your skills, really believe in what you are doing, and, as a by-product, open doors and bring some credibility.

We recently spoke with Jean-Francois "Jeff" Clavier, founder and managing partner of SoftTech VC, one of the most active seed-stage investors in Web 2.0 startups. He invests from a $15 million fund, investing from $100K to $500K in companies, generally alongside other funds or angels, making up a total of $750K to $1.5M per venture. He invests in consumer Internet companies working in areas such as social media, communities, search, gaming, and consumer infrastructure, almost exclusively in Silicon Valley.

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

In our 10 Things to Be Clear About Before You Start, we suggested that you decide whether to build a team of partners or fly solo. If you have decided to build a team of partners, even a small team of two, you'll need to also decide how this partnership will work. Your only currency will be equity in a company that has not been formed and a venture/Web service that is no more than a gleam in the eye.

We have heard the VC's side of the story in many interviews. In this interview, we get the perspective of an experienced entrepreneur who is highly critical of the current crop of top-tier VCs. He says the emperor is not wearing clothes.

One question we put to many of the VCs we have spoken to is:

"How is the VC model changing, if at all, and how does the global financial crisis impact this change?"

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

Figuring out which wave to ride (secular trends) is vital. Figuring out when to get on and when to get off is also important. You will never get the timing exactly right. It is like calling the top or bottom of a market. If you do manage to make exactly the right call, it is probably luck. But you can get the basic timing right. It doesn't take a genius to see which cycle you're in at any given time. What matters is figuring out what to do in each stage of the cycle.