Startup Professionals Musings

AUGUST 5, 2023

While exploring all these alternatives, don’t forget that the right investor in a majority of cases may be you, through bootstrapping and personal credit. The right investor also changes as you move through the different startup stages. Looking in the right place for the wrong investor won’t help you.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246

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

Startup Professionals Musings

JULY 22, 2020

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Don’t sign up for one, expecting the other.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

OCTOBER 13, 2013

Angel investors and venture capitalists don’t invest in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. For a non-profit, bootstrapping is self-funding from donations and fund-raising. Individual and institutional donations.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Startup Professionals Musings

JULY 3, 2011

Angel investors and venture capitalists don’t invest in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. For a non-profit, bootstrapping is self-funding from donations and fund-raising. Individual and institutional donations.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

ReadWriteStart

OCTOBER 7, 2010

As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. Sub-$2 million pre-money, it is better to bootstrap. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Trendy Loot.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

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

SEPTEMBER 15, 2012

Angel investors and venture capitalists don’t invest in non-profits. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. For a non-profit, bootstrapping is self-funding from donations and fund-raising. Individual and institutional donations.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

MARCH 16, 2016

This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Frothy startup valuations. Super-angel investors (micro-VCs). Prime examples include Uber, Airbnb and Snapchat. Could your startup be the next one? A seed round is intended to be followed by a bigger Series A round.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

MARCH 22, 2020

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). Then you don’t have to worry about the fact that most angel investors and venture capitalists won’t take a bet on you if none of your friends and family have given you a vote of confidence with money.

Management 308

Management Cram Down Angel Investor Equity 308

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 ask for more money than your company is now worth, no investor will bite. What business milestones have you met?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

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

NOVEMBER 22, 2020

While exploring all these alternatives, don’t forget that the right investor in a majority of cases may be you, through bootstrapping and personal credit. The right investor also changes as you move through the different startup stages. Looking in the right place for the wrong investor won’t help you.

Stealth 434

Stealth Startup Angel Investor Bootstrapping 434

VC Cafe

SEPTEMBER 28, 2023

The Carta data showed the following trends: About half of the companies that closed had not raised any venture capital, relying solely on bootstrapping, angel investors, or other sources. Startups that raised in 2021 and 2022 often at high valuations, had to adjust quickly to the new market conditions of 2023.

Valuation 104

Valuation Startup Angel Investor Dilution 104

Startup Professionals Musings

JANUARY 4, 2020

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 ask for more money than your company is now worth, no investor will bite. What business milestones have you met?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

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

Austin Startup

FEBRUARY 13, 2019

But every startup’s journey towards getting to the Series A point is certainly unique in its own way, and when I reflect on what it took to reach this goal, there were four key strategies, related to raising funds and seeking out investors, that really set us up for successes and helped us get there not just faster, but smarter.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

Startup Professionals Musings

MARCH 1, 2010

For example, with any outside investment, you give up some ownership and control, and with bootstrapping you 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 149

Technical Review Bootstrapping Startup Venture Capital 149

Startup Professionals Musings

AUGUST 19, 2018

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Don’t sign up for one, expecting the other.

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Berkonomics

AUGUST 3, 2023

It might be useful to list some of the ways in which you can raise money for growth with and without outside investors. Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. « Power of Angel Investing in Milwaukee | Main. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. Bottom Up Market Sizing » January 12, 2010.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

JULY 4, 2014

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Don’t sign up for one, expecting the other.

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

Startup Professionals Musings

MARCH 9, 2018

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). Then you don’t have to worry about the fact that most angel investors and venture capitalists won’t take a bet on you if none of your friends and family have given you a vote of confidence with money.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). Then you don’t have to worry about the fact that most Angel investors and venture capitalists won’t take a bet on you if none of your friends and family have given you a vote of confidence with money.

Founder 254

Founder Cram Down Angel Investor Equity 254

Up and Running

SEPTEMBER 19, 2017

In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. Rule 1: Bootstrap until you have a viable product. Takeaway lesson: A shocking number of technology startups never even get their first product out the door.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Tim Keane

MARCH 9, 2011

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC.   And – they can be avoided if both parties – investors and entrepreneurs – are knowledgeable and well-informed about each others’ goals and interests. « Leaving a Trail | Main. |

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Professionals Musings

APRIL 17, 2013

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). Then you don’t have to worry about the fact that most Angel investors and venture capitalists won’t take a bet on you if none of your friends and family have given you a vote of confidence with money.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

Startup Professionals Musings

AUGUST 13, 2016

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Don’t sign up for one, expecting the other.

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

Startup Professionals Musings

NOVEMBER 11, 2015

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). Then you don’t have to worry about the fact that most angel investors and venture capitalists won’t take a bet on you if none of your friends and family have given you a vote of confidence with money.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Tim Keane

MAY 16, 2010

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. A philosophy of valuations and term-sheets. A Philosophy of Valuation and  Term Sheet Calcs   the accompanying spreadsheet.  A philosophy of valuations and term-sheets.

Term Sheet 60

Term Sheet Valuation Wisconsin Angel Investor 60

Haystack

NOVEMBER 12, 2018

By all accounts, the Utah-HQ’d company did everything the right way, was an overnight success 16 years in the making, and only raised venture capital as a growth company after years of bootstrapping. Instead, we’ve seen a few massive buys, like Whatsapp , or more recently, RedHat.

Acquisition 105

Acquisition Utah IPO Venture Capital 105

Startup Professionals Musings

MAY 13, 2016

While exploring all these alternatives, don’t forget that the right investor in a majority of cases may be you, through bootstrapping and personal credit. The right investor also changes as you move through the different startup stages. Looking in the right place for the wrong investor won’t help you.

Stealth 120

Stealth Startup Angel Investor Bootstrapping 120

Startup Professionals Musings

MAY 2, 2016

Unfortunately, as a startup advisor and angel investor, I’ve seen too many ventures with great potential get destroyed or set back by legal and other shortcuts that should never have been allowed to happen. Delay incorporating until required by investors. Skip any due diligence verification on interested investors.

Intellectual Property 120

Intellectual Property Due Diligence Non-Compete Startup 120

Startup Professionals Musings

FEBRUARY 5, 2012

It wouldn’t work anyway, since your valuation at that stage would be less than the funding, meaning you would have to give away all ownership for the money. Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding sources specialize in certain growth stages.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Gust

NOVEMBER 22, 2011

It wouldn’t work anyway, since your valuation at that stage would be less than the funding, meaning you would have to give away all ownership for the money. Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding sources specialize in certain growth stages.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Berkonomics

JUNE 8, 2017

It might be useful to list some of the ways in which you can raise money for growth with and without outside investors. Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

A Smart Bear: Startups and Marketing for Geeks

AUGUST 16, 2010

Let's get the self-aggrandizing plea for attention out of the way: Please vote for my SxSW panel entitled "A Bootstrapped Geek Sifts Through the Bullshit.". He believes that angel investors are pushing entrepreneurs to think small, and avoid the home run swings. And you don’t get a home run unless you swing hard, he says.

Exit Strategy 246

Exit Strategy Angel Investor Finance Incubator 246