Gust

APRIL 11, 2014

Before, it might have net assets that are near zero. Every S-1 contains the same language in Risk Factors that reads, essentially, “If you buy shares in our IPO, you will experience substantial and immediate dilution in the pro forma net tangible book value per share.”

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

Gust

NOVEMBER 20, 2014

Department of State and several other private sector partners to launch The GIST Network (GIST Net), an interactive online network connecting science and technology entrepreneurs in emerging economies. GIST Net will provide entrepreneurs with the resources and mentorship they need to collaborate, seek funding, and grow their businesses.

.Net 152

.Net Morocco Silicon Valley Global 152

Gust

OCTOBER 21, 2015

High net worth individuals become angel investors for a number of reasons, but the opportunity to work with entrepreneurs and provide guidance to founders is typically high on the list. One of the most common questions we get is: What are the biggest challenges and rewards of angel investing?

Angel Investor 70

Angel Investor .Net Video Founder 70

Gust

AUGUST 30, 2014

These are defined as a person with net assets of over $1 million (not including the value of his or her primary residence), or an income of $200,000 (not $250,000) annually for the past two years and a reasonable expectation of that for the next year.

Accredited Investor 149

Accredited Investor Private Placement SEC .Net 149

Gust

JUNE 21, 2014

And even with those metrics, and assuming an optimistic holding period of only six years instead of nine, the net annual return on all of the investor’s angel activity will be 25%…a pretty limited compensation for taking the enormous risks, active involvement and lengthy period of illiquidity involved.

Angel Investor 127

Angel Investor Post-Money Valuation Valuation Time Value of Money 127

Gust

OCTOBER 26, 2014

Take little to no net profit. If you do, there probably won’t ever be a long run! Reinvest gross profit. Most startup founders already do this, rather than take a salary, to improve their offering. Simply take enough to live on, but not to the point of your detriment. Act big, behave small.

Bootstrapping 176

Bootstrapping Startup Merger Salary 176

Gust

MAY 4, 2014

Before the other party has to ask, you should look for an opportunity to net out what you are here to accomplish, and even have a couple of questions in mind that you would like to get answered. In my opinion, this approach will double or triple your probability for success, no matter what the transaction. Know a lot, but don’t flaunt it.

Entrepreneur 172

Entrepreneur Angel Investor Affiliate .Net 172

Gust

FEBRUARY 2, 2014

So here’s my net on how an entrepreneur should look at an MBA: If you are already an entrepreneur, more education, including an MBA, will only slow you down. But I’ve found so many on the other side, like Mark Zuckerberg of Facebook and Steve Jobs, who dropped out of college to start companies, and succeeded anyway.

Entrepreneur 175

Entrepreneur Salary .Net Revenue 175

Gust

MARCH 30, 2014

Everyone will assume that your company name is your domain name minus the suffix “.com” com” or the standard suffix for your country. If these suffixes are not available for the name you prefer, pick a new name rather than settling for an alternate suffix like “.net” Get all three suffixes if you can. Don’t box yourself in.

Naming 174

Naming Cofounder Algorithm .Net 174

Gust

JULY 31, 2012

The seller (the angel investor) is then free to write off their investment (net of the selling price), according to the appropriate tax regulations. The buyer has very little invested but maintains potential for an eventual exit or buy-back from the company or other investors.

Exit Strategy 135

Exit Strategy Angel Investor Capital Gains Startup 135

Gust

NOVEMBER 18, 2012

The cost approach attempts to measure the net value of the business today by calculating how much it could cost for a new effort to replace key assets. A target multiple can be taken from industry average tables, or derived from scoring key factors of the business. If you have no better info, use 5x as the multiple.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Gust

DECEMBER 16, 2011

The locked-up founders may never realize more than a tiny fraction of their paper net worth on that day they smile and ring the opening bell. Their miniscule floats are tightly managed to artificially inflate the offering price and maintain it briefly; then, a slow (or sometimes fast) descent to earth begins.

IPO 87

IPO .Net Social Network Mobile 87

Gust

OCTOBER 8, 2014

If you have raised $2-4 million from a bunch of high-net-worth individuals I simply don’t see it as an A-round. If it looks like an A-round, smells like an A-round & tastes like an A-round … it’s an A-round. My personal definition? It is less about actual money and more about structure of your Cap Table.

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Gust

JULY 23, 2012

Furthermore, while some charitable organizations might have some limited experience in handling contributions of complex assets, the cost to the charity to outsource the compliance and liquidation work can be considerable – significantly reducing the net result to the charity. However, in these cases you are limited to the “cost basis” (e.g.

Stock 114

Stock Capital Gains Warrant Stock Options 114

Gust

OCTOBER 11, 2011

She was interrupted when she clicked to the financial summary, a bar chart showing three years of annual sales, gross margin, and net income. She, the CEO of a fledgling pharmaceutical company with a lot of intellectual property, research, management experience, was confident, rolling through slides, and building momentum.

Intellectual Property 70

Intellectual Property Differentiation .Net Sales 70

Gust

DECEMBER 31, 2012

Almost all angel investors are “high net worth” individuals who made their money running a successful business in your domain, and they will mentor your team as well as demand the discipline you need to make your business work. Most actually have the time and inclination to help you, rather than compete with you. Angel investor.

Advisory Board 177

Advisory Board Angel Investor Startup Equity 177

Gust

OCTOBER 8, 2014

When I set about to raise money for my first startup, sixdegrees, I spoke with over 200 high-net-worth individuals– all of whom rejected me. Your goal is not to demonstrate that you have all the answers or that your success is a certainty, but rather that your business is indisputably moving forward. Stay In Touch. Have Patience.

Venture Capital 163

Venture Capital Finance Early Stage .Net 163

Gust

OCTOBER 26, 2011

In most VC and angel financing transactions, there are three pieces to this puzzle: (1) the Company requires investors to make certain representations in the purchase agreement (e.g.,

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

Gust

DECEMBER 7, 2011

This conclusion was validated by many others including the Kauffman Foundation, which at the Obama Jobs Summit 2009 showed that virtually all net new jobs (~3 million per year) in the US are created by companies less than five years old.

.Net 98

.Net Revenue Networking Startup 98