University Seed Funds: A Dichotomy of Terms

One of the first observations someone entering the realm of seed funding is a lack of consistent terminology in defining a very early stage investment.   Words like pre-seed, seed, and proof of concept are often bantered around in a seemingly interchangeable, and somewhat confusing fashion.  It is important to understand that differences in timing or company stage can dramatically affect the amount of perceived risk that exists and the corresponding investment terms associated with a particular investment.

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Disproportionate Distribution of Stock Ownership Among Initial Founders in Startup Ventures: Survey Results and a Ranking of Factors to be Considered

To date little research has been performed as to how founders of start-up ventures determine initial distribution of ownership. In many instances, distribution of ownership is proportionally divided, even though individual contributions to the venture may vary widely. In these circumstances, a disproportionate distribution of ownership would be more reflective of individual contributions to the venture, and more importantly, determine the appropriate incentive (or “reward”) for each founder.   A survey of business owners was administered, and counter to much of the existing literature, a significant percentage of the respondents divided ownership disproportionately.  The survey provides a ranking of factors that can contribute to disproportionate distribution of ownership.  To read the full article please see, Journal of Small Business Strategy, 20 (2) Winter, 2010.

Initial Blog Post - Thoughts from an Entrepreneurship Professor

The first day you walk into a non-traditional classroom, where students can range in age from early 20 something to here in Arkansas, I’m over the age of 65 and can take classes “free”, the first thing you notice are the students your age.  They are the ones with age lines and battle scars.  They have a jaded perspective on the world.  They are as often to challenge what you say with a look as they are with a question. 

The second thing you notice is youthful fidgeting.  You are not quite sure why they are there, if they really want to be there, or how talented they might be.  Are they contributors or detractors?

Then you notice the exuberance crowd.  Some semesters it might be one or two, and in others, it could be a good handful.  Are they bright or just hyper?  Are they really into the subject matter or are they trying to make “grade impressions”?  Is this where the potential entrepreneur will come from?

It’s interesting, the unnoticed, quiet back bencher (a British term referring to a new member of parliament’s physical seat in the chamber), approaches half-way through the semester and shares a compelling entrepreneurial endeavor he has been working on for some time.

In reality the student entrepreneur can come from any of these groups.  How do you reach or motivate such a diverse selection of talent to aspire to their entrepreneurial potential?  How do you balance the majority of the class that might be there solely to complete an elective, or worse, it’s a required course they have little or no interest in?  In a devious mindset, there is always the opportunity for converts….

I’m not sure where this blog will wind but I will share thoughts and perspectives from the classroom, research, my startup ventures, and other “fascinating” aspects of my professional life.  Or possibly, even a brief look into the personal side.  Thanks for reading.  Come back often.