article thumbnail

10 Keys To Surviving Startup Cash Flow Requirements

Startup Professionals Musings

Nevertheless, it’s an option that doesn’t cost you equity. As a rule of thumb, it is a required step anyway, since outside investors will not normally consider providing any funding until they see “skin in the game” from inside. Solicit funds from friends and family. Use crowd funding to build reserves. Join a startup incubator.

article thumbnail

5 Keys To A Viable Spending Rate And Cash Management

Startup Professionals Musings

Going back to investors for more money ahead of the plan is high in terms of credibility and leverage. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 258
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Baby Boomers Fit In The Realm Of Entrepreneurship

Startup Professionals Musings

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage angel investors. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

article thumbnail

How to Raise Startup Funding from Unlikely Angel Investors

Up and Running

Angel investors come from a variety of ages, backgrounds, and professions. I’m not your average angel. I’m not active in an angel group. I live in a small town surrounded by farms and I made my first angel investment at 29 because my dad said it was a good idea. So, who are these unlikely angels?

article thumbnail

10 Tips For A New Venture To Survive The Early Years

Startup Professionals Musings

As a rule of thumb, it is a required step anyway, since outside investors will not normally consider providing any funding until they see “skin in the game” from inside. The most effective new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity.

article thumbnail

How the pre-seed round made a comeback in 2024

VC Cafe

In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. Therefore, software startups (it depends of course) need less money than ever before to build an MVP and get to first customers.

Valuation 186
article thumbnail

10 Financing Alternatives For Your Next New Venture

Startup Professionals Musings

Nevertheless, it’s an option that doesn’t cost you equity. As a rule of thumb, it is a required step anyway, since outside investors will not normally consider providing any funding until they see “skin in the game” from inside. Solicit funds from friends and family. Use crowd funding to build reserves. Join a startup incubator.

Finance 320