Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Product Development 177

Product Development Cost Developer Product 177

The Startup Magazine

NOVEMBER 28, 2018

The event presenter, FUND, is a national connector of entrepreneurs, VCs, angel investors, and industry experts with a focus on deal flow and making connections. The FUND Conference brings together over 100 startups to present their early-stage products and pitches in front of hundreds of investors and industry leaders.

Technical Review 153

Technical Review Software Review Illinois Due Diligence 153

Startup Professionals Musings

APRIL 17, 2023

On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue). Different types of investors tend to specialize in capitalizing on businesses at different stages. Don’t sign up for one, expecting the other.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Any custom manufactured IoT device would require software development as well as hardware customization. Bootstrapping. Equity investors. Seed stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

ReadWriteStart

FEBRUARY 18, 2020

When starting a business, it’s typical to look for venture capital, angel investors, and even co-founders to help get the company up and running. Instead, knowing how to bootstrap your startup might be a better option. How to Bootstrap Your Startup. Focus on Your Customers. Get Creative With Startup Funds.

Bootstrapping 145

Bootstrapping Startup Cofounder Angel Investor 145

Startup Professionals Musings

AUGUST 5, 2023

Identify customer executives who need your solution. Many savvy entrepreneurs are able to convince high-potential customers that investing early in a high-value solution, perhaps through an advance on royalties, is in their best interest. Reach out to your biggest fans for investor leads.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246

Startup Professionals Musings

JUNE 18, 2022

Theirs is not the autocratic style of leadership, which tells people what to do and dominates them, but a style which treats partners, investors, and customers as family. This is really the realm of bootstrapped startups, and a small segment of the angel investor community that is looking for a “quick hit” with a quick return.

Bootstrapping 374

Bootstrapping Angel Investor Differentiation Leadership 374

Startup Professionals Musings

JUNE 8, 2016

They don’t realize that according to statistics , more than 90 percent of satisfied entrepreneurs use bootstrapping, since other people’s money always comes with strings, most of them negative. Yet every investor, including a rich uncle, will likely ask for specific progress evidence. You won’t be fired if you use your own money.

Bootstrapping 120

Bootstrapping Advisory Board Startup Venture Capital 120

Startup Professionals Musings

JUNE 25, 2012

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Following is my prioritized larger list of sources, with some “rules of thumb” which may save you a lot of time and energy: Bootstrapping. Angel investors.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

NOVEMBER 7, 2014

Most of these scenarios involve attracting outside investors, strategic partners, or key team members: You are the team and you don’t need outside funding. Tiny bootstrapped teams usually don’t have a business plan, and probably don’t need one. You need an investor, and want a document to mass-mail to everyone.

Business Plan 274

Business Plan Technical Review Angel Investor Due Diligence 274

Startup Professionals Musings

DECEMBER 9, 2019

With the advent and popularity of crowdfunding platforms, including Kickstarter and IndieGoGo , as a winning alternative for funding your new venture, I find that many aspiring entrepreneurs are confused about the need to ever seek a professional angel investor. Business-to-business products need professional investors.

Non-disclosure Agreement 299

Non-disclosure Agreement Angel Investor Bootstrapping SEC 299

The Startup Magazine

MARCH 29, 2024

This isn’t just about having a eureka moment; it’s about understanding the problem you’re solving and why it matters to your potential customers. Then, consider how you’ll reach your customers and what kind of relationship you want to build with them.

Intellectual Property 131

Intellectual Property Angel Investor Business Model Bootstrapping 131

Up and Running

SEPTEMBER 29, 2022

It can be the idea, the customers, the mission, the grind—whatever it is; there’s something that keeps you going. Sure, your friends and family say they love it, but that doesn’t guarantee that actual customers will. Take the time to conduct market research and identify your target customers. That’s completely fine.

Forecast 154

Forecast Software Review Bootstrapping Finance 154

Startup Professionals Musings

JULY 22, 2020

On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue). Different types of investors tend to specialize in capitalizing on businesses at different stages. Don’t sign up for one, expecting the other.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

SoCal CTO

MARCH 1, 2010

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs , February 2, 2010 Looks at the critical equation around customer acquisition cost vs. customer lifetime value similar to what I discussed in Startup Metrics but in more depth. They now have a cool new way to get intros to these angels: StartupList.

Acquisition 150

Acquisition Cofounder Technical Cofounder Cost 150

Startup Professionals Musings

JUNE 14, 2013

Let’s look at some common scenarios, and put this into perspective for entrepreneurs: You don’t need or want investors or a loan. With bootstrapping, no business plan is expected by anyone. You need an investor, and want a document to mass-mail to everyone. Creating a business plan for this purpose is a waste of time.

Business Plan 250

Business Plan Technical Review Entrepreneur Angel Investor 250

Up and Running

NOVEMBER 26, 2018

A well-written and convincing business plan (and pitch ) presents your business to investors in detail; but they are investing in your business, not just a plan. Normally you have to have a team in place, have made progress toward idea validation , or—better still—traction (paying customers). Nobody invests in ideas or plans.

SBA 161

SBA Venture Capital Angel Investor Technical Review 161

Startup Professionals Musings

JANUARY 22, 2021

How do you convince investors that your business model will really work, before you have a revenue stream that exceeds your expenses? Even if you are bootstrapping your business, and you are the only investor, you should be asking yourself the same question. Customer support is more than handling exceptions.

Business Model 414

Business Model Angel Investor Bootstrapping Revenue 414

Startup Professionals Musings

AUGUST 25, 2023

Based on my own experience as a mentor and angel investor, I find that as many as ninety percent of startups fail in the first five years, despite their best efforts. By far, the majority of new businesses I know are self-funding (bootstrapped) from your own savings and prior assets.

Intellectual Property 245

Intellectual Property Social Media Angel Investor Metrics 245

Startup Professionals Musings

MARCH 16, 2011

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Following is my prioritized larger list of sources, with some “rules of thumb” which may save you a lot of time and energy: Bootstrapping. Angel investors.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

SEPTEMBER 25, 2023

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. Their only recourse is that first tier of investors, fondly called Friends, Family and Fools.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

NOVEMBER 22, 2020

Identify customer executives who need your solution. Many savvy entrepreneurs are able to convince high-potential customers that investing early in a high-value solution, perhaps through an advance on royalties, is in their best interest. Reach out to your biggest fans for investor leads.

Stealth 434

Stealth Startup Angel Investor Bootstrapping 434

Startup Professionals Musings

DECEMBER 4, 2021

Not an investment opportunity for business investors. I still get inquiries about how to find angel investors and venture capitalist to kick-start a social enterprise. Funding such an enterprise is more likely philanthropists, government grants, or bootstrapping. Not about entrepreneurship in the government sector.

Entrepreneur 345

Entrepreneur Angel Investor Government Bootstrapping 345

Startup Professionals Musings

OCTOBER 7, 2022

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. If you have a good idea, but haven’t started yet, only friends, family and fools will likely be interested.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Gust

APRIL 27, 2014

Unless you are bootstrapping everything, you need to have a clear plan on what networking and documents are required to get to friends and family, Angel investors, and institutional investors. Customer service and support. Funding process.

Startup 187

Startup Institutional Investors Angel Investor Bootstrapping 187

Startup Professionals Musings

JUNE 22, 2020

As an angel investor, I often hear from young entrepreneurs who have invented a shiny solution, without really focusing first on the need or the opportunity. Time and experience in business teaches you to listen for potential customers, and carefully evaluate the real business potential.

Bootstrapping 324

Bootstrapping Angel Investor Entrepreneur Leadership 324

Startup Professionals Musings

MAY 21, 2023

Negotiate an advance from a strategic partner or customer. Find a major customer, or a complimentary business, who sees such value in your idea that they are willing to give you an advance on royalty payments to complete your development. Apply to local angel investor groups. Fund your startup yourself.

Equity 266

Equity Startup Small Business Administration SBA 266

Gust

JUNE 17, 2012

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Following is my prioritized larger list of sources, with some “rules of thumb” which may save you a lot of time and energy: Bootstrapping. Angel investors.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Professor VC

MARCH 10, 2009

Bootstrapping 101. I moderated a panel discussion last night on one of my favorite topics, bootstrapping, as part of our Silicon Valley Center for Entrepreneurship Eminent Speaker Series at San Jose State. They have a standard presentation on bootstrapping, which they present around the country. ProfessorVC. Steve Bennet.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

Startup Professionals Musings

MAY 8, 2022

The right investors and right time dilemma. You don’t want to take money from friends and family, but it’s too early for angel investors and VCs. Bootstrap if you can, otherwise climb the pyramid of family, friends, angels, and VCs. You can’t have it all, just like your startup can’t be all things to all customers.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

AUGUST 29, 2020

Negotiate an advance from a strategic partner or customer. Find a major customer, or a complimentary business, who sees such value in your idea that they are willing to give you an advance on royalty payments to complete your development. Apply to local angel investor groups. Fund your startup yourself.

Equity 436

Equity Small Business Administration SBA Syndicate 436

Startup Professionals Musings

JANUARY 11, 2021

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. Their only recourse is that first tier of investors, fondly called Friends, Family and Fools.

Sweat Equity 346

Sweat Equity Elevator Pitch Equity Venture Capital 346