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Startup Advice: When to Use a Consulting CTO

rapidrollout.wordpress.com

Investors use a consulting CTO for technical due diligence. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner. Though after the dotcom collapse of 2000-2001, there are many more than there were!

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Working for Equity Instead of Cash

genylabs.typepad.com

Before you agree to take equity in lieu of cash, you need to understand that any individual early stage start-up company equity is most likely going to be worthless. The best start-up I ever invested in went bankrupt in 2001. Before taking equity in a company I go through a VC-like investment and due diligence process.

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Time is the Enemy of All Deals

Both Sides of the Table

We moved into the legal process and final due diligence in January and February of 2000. I lived through this again September 2001. I’ve offered to fund an early stage company where I promised cash in bank in less than 30 days. I lived through this again September 2001. They accepted my argument.

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Valuations 101: Scorecard Valuation Methodology

Gust

Working within a network of angel investors also expands the pool of expert resources and helps divide the work of screening companies and investment due diligence. This article was originally written in May 2001, revised extensively in January 2011 and again October 2011. Another angel round. – Need venture capital.

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Where are the Deals? How VCs Identify the Next Generation of Startups

David Teten

Detailed due diligence. Leading Late-Stage Technology Investors’ Portfolio by Geography, 2001-1Q2010. Battery & Sequoia data only include late stage/growth equity deals. Some early-stage startups are a luxury good; some investors will pay a premium for perceived exclusivity. 10,000 [v].

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How to Develop Your Fund Raising Strategy

Both Sides of the Table

I raised money as an entrepreneur, like you, in 1999, 2000, 2001, 2003 and 2005 for two different companies. And trust me, if you’re early stage you DO want to meet Bryce. He’s awesome for early-stage entrepreneurs. Meet early. I’ve raised seed rounds and A-D rounds. Not so much.

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ProfessorVC: The Most Important Venture Capital Statistic

Professor VC

million for the year, which is the first time it has been below $5 million since 2001, a sign that capital efficiency will be even more important than it has. At Fliqz, we met or exceeded the sales plan every month during the due diligence process. Total amount raised fell from $7.5 billion to $5.5 billion quarter over quarter.