Startup Professionals Musings

APRIL 4, 2022

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. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

JUNE 5, 2015

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). Rose, according to his recent book, “ Angel Investing.” All startups always need more money.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

VC Cafe

FEBRUARY 27, 2024

especially if the startup already has a product and revenue? What’s the difference between an angel round and pre-seed round and why do I believe we’ll see more pre-seed rounds taking place in 2024? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Friends and family investors. Individual super angel investors. Venture farms.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

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. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. Most early-stage entrepreneurs who have worked with me (either as an angel or as a seed VC) know that I don’t rely at all on the social proof of other investors.

Finance 286

Finance Term Sheet Technical Review Warrant 286

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. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Marty Zwilling.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business. Bootstrapping.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JUNE 6, 2010

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. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Marty Zwilling.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

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. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

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. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

The Startup Magazine

AUGUST 11, 2023

pexels You need to have enough resources by having a seed-stage investor who will financially support your company in the long run. These investments are a tremendous help to your startup because they will serve as a stepping stone to reach your target eventually. With startup funding, these companies can get through this phase.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

YoungUpstarts

JULY 6, 2017

The romantic ideal of a successful startup includes little more than a good idea, a laptop and plenty of coffee. In reality, most startups require an early capital infusion to successfully transform from a dream into a business. The good news is that it’s easier than ever to find capital for your startup.

Syndicate 127

Syndicate Syndication Software Review Angel Investor 127

Startup Professionals Musings

JUNE 20, 2016

Thus the top priority of every entrepreneur who wants funding should be to build and highlight their “dream team” of co-founders, executives and advisers, to attract the biggest and best investors. Solo entrepreneurs rarely find an investor. Team members have investor relationships. Focus on prior results, not titles.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Software Review 152

Startup Professionals Musings

MAY 9, 2014

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). Thus investing in startups should always be approached as a low odds game.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

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. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

YoungUpstarts

DECEMBER 19, 2017

Determining how to finance your business is an important decision with big consequences. There are several ways to approach funding, but there are two main sources of financing: debt and equity. Debt Financing. Debt financing is where you borrow money from a lender that you will later pay back with interest.

Finance 138

Finance Angel Investor Equity Startup 138

Startup Professionals Musings

SEPTEMBER 20, 2017

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. There is no discussion of equity, or return on investment.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

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. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Product Development 177

Product Development Cost Developer Product 177

The Startup Magazine

MARCH 22, 2019

The question of venture capitalist versus angel investor often arises. Venture capital and angel investments offer excellent options to startup businesses. Investor Involvement. They are less likely than angel investors to provide capital to companies that don’t have at least some proven success in their markets.

Angel Investor 153

Angel Investor Venture Capital Accredited Investor Equity 153

YoungUpstarts

OCTOBER 19, 2018

When you’re looking for extra funds, there are typically two options: debt financing and equity financing. It’s important to understand the difference between debt financing and equity financing so when it comes time to get additional funding, you know which is the right fit for your business and how to get it.

Finance 157

Finance Equity Vesting Dividend 157

techcrunch.com

SEPTEMBER 2, 2012

Convertible Equity, A Better Alternative To Convertible Debt? There has been no shortage of controversy and criticism around the convertible note, a popular investing vehicle that’s used by seed stage and angel investors. Ressi estimates that the debt note now accounts for over 50% of all angel and early stage deals.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Up and Running

NOVEMBER 26, 2018

Most healthy businesses need business financing at some point. Startups have to deal with starting costs and ongoing businesses have to finance growth and working capital. Financing options depend on what kind of business you have. Don’t waste your time looking for the wrong kind of financing. Venture capital.

SBA 161

SBA Venture Capital Angel Investor Technical Review 161

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. So, if you’re an investor or the creator of a new business, read on. Common stock.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

SEPTEMBER 23, 2013

The newest equity model was passed into law in early 2012 via the JOBS Act , and still has no scheduled date for availability in the USA, waiting for the rules to be defined by the SEC: Startup equity crowd funding. These are primarily matchmaking sites between entrepreneurs and professional investors or banks.

Intellectual Property 247

Intellectual Property SEC Venture Capital Equity 247

YoungUpstarts

JUNE 11, 2019

There are two statistics that matter the most when it comes to millennials and finance. The problem with this lies in the fact that, when it comes to the issue of business finance, knowledge matters far more than confidence. Other options are startup accelerators and local economic development organizations. Finance advisor.

Finance 149

Finance Bankruptcy Startup Angel Investor 149

Up and Running

DECEMBER 1, 2015

Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. In this article, I’m going to examine: What equity compensation is. Different types of equity compensation.

Equity 60

Equity Employee Stock Options Vesting 60

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. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

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. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

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. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

YoungUpstarts

JANUARY 12, 2017

Securing adequate financing for any new venture nowadays is an exceptionally difficult proposition, which is why angel investors are considered so valuable to the startup ecosystem. Although, inversely it is also important for entrepreneurs to understand how to properly evaluate an angel investor’s proposal.

Angel Investor 100

Angel Investor South America Early Stage Africa 100

Tim Keane

MARCH 9, 2011

Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? « Leaving a Trail | Main. |

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Professionals Musings

AUGUST 29, 2018

by either angel groups or VCs alone. Yet crowdfunding is no panacea for hungry entrepreneurs and startups. According to Yahoo Finance , less than a third of crowdfunding campaigns currently reach their goals, and the rest have to return anything they do collect. Very few startups need only one round of funding.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Up and Running

JUNE 23, 2022

On the other hand, some of these are not easily fixable so you’ll have to look for alternative solutions to your financing problems. Where you borrow money from angel investors or venture capitalists willing to lend money to startups for more interest and usually an equity kicker as well. Get a co-signer.

SBA 163

SBA Finance Balance Sheet Technical Review 163

Up and Running

SEPTEMBER 19, 2017

Capital investments are like gasoline on a startup business’s metaphorical fire. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby. When you accept outside money, particularly a private equity (PE) investment, however, that changes. Rule 1: Bootstrap until you have a viable product.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

David Teten

DECEMBER 2, 2019

You’ve decided to launch a technology-enabled startup with a positive social impact! Now the bad news: some venture capitallists have a bias against startups with an explicit positive social impact, on the grounds that they have a smaller addressable market, and that the founders are not sufficiently focused on creating shareholder wealth.

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60