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The 10 Best Sources of Cash to Start Your Business

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If you don’t know any “high net worth” individuals, use your advisors to find them. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. An investment from a venture capital firm is usually expensive, in equity and control.

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Valuations 101: The Risk Factor Summation Method

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If your judgment of the twelve factors above has five neutral assessments (five zeros), five +1’s, one -1 and one -2 (a net of two +1’s), then add $500,000 to the average valuation of $2.0 As an example, Assume the average pre-money valuation of pre-revenue companies in your area is $2.0 million, arriving at a $2.5

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What is the Definition of a Seed Round or an A Round?

Gust

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. Invested Interests cap table venture capital' 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? Reblogged via [link].

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6 Steps to Raising Venture Capital in 6 Months

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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.

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A long time ago in an economy far, far away.

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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.

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Two Great Moments in Pitches

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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.

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Knowledge Is Power: Convertible Note Financing Terms, Part V

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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.,

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