Gust

JUNE 19, 2012

Tim Berry , Founder, Palo Alto Software. Martin Zwilling , Founder and CEO, Startup Professionals. Tim Berry , Founder, Palo Alto Software. Martin Zwilling , Founder and CEO, Startup Professionals. Tim Berry , Founder, Palo Alto Software. Martin Zwilling , Founder and CEO, Startup Professionals. I like that.

Startup 180

Startup Forecast Angel Investor Software 180

Gust

APRIL 20, 2014

It’s your startup, so you can give early partners any title you want, but be aware of potential investor and peer implications. VCs and Angel investors like to see a startup that is running lean and mean, with no more than three or four of the conventional C-level or VP titles. Image via Wikimedia Commons.

CTO Hire 171

CTO Hire Fractional CTO Angel Investor Public Relations 171

Gust

OCTOBER 5, 2015

A year ago, in mid September 2014, I walked out of a Starbucks in San Francisco with the very first check from an angel investor for Glassbreakers. Though it was only $5,000, it was enough to prove to myself and my co-founder, Lauren Mosenthal, that we could actually fundraise for our startup.

San Francisco 70

San Francisco Founder Angel Investor Cofounder 70

Gust

JUNE 3, 2012

Otherwise, I suggest that founders be up-front with their employers, with an honest commitment that the “side” work on the potential startup will not jeopardize committed results. In a part-time effort, a co-founder is essential to keeping you on-track and working. Pick a day and time per week where you always work together.

Entrepreneur 152

Entrepreneur Cofounder Angel Investor Salary 152

Gust

OCTOBER 26, 2015

Kevin Klages, Co-Founder and CEO of Planitar, raised a $500,000 seed round after four pitches to angel investors. We sat down with Kevin as he shared what his fundraising journey was like, the startup lessons he learned, and his advice to fellow founders. Here is what he had to say: HK: Tell me a little about Planitar.

Founder 70

Founder Angel Investor Cofounder Startup 70

Gust

NOVEMBER 11, 2011

Startups and investors discover each other, and the community wins because the event becomes visible evidence of new business and new jobs locally. And new angel investors are trained and oriented. Angel investment events where the due diligence isn’t done before the event. Local media cover it. Are they worth the risk?

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

Gust

JANUARY 22, 2014

This is obviously a softball question that I’ve been Asked to Answer, as I’m the Founder/CEO of Gust. As a very active angel investor myself, I frankly can’t imagine how I could keep track of all the pieces without Gust. Gust News Invested Interests angel investors David Rose Gust investments startup'

Angel Investor 150

Angel Investor Angel Groups Accredited Investor Early Stage 150

Gust

JUNE 17, 2012

Yet, I find that startup founders often fixate on one or two sources, often to the detriment of their business. Angel investors. If you are looking for $25,000 to $1 million, the next step is to tap into a local angel network. These resources would likely include office space, consulting, and even a cash investment.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Gust

JANUARY 22, 2014

This is obviously a softball question that I’ve been Asked to Answer, as I’m the Founder/CEO of Gust. As a very active angel investor myself, I frankly can’t imagine how I could keep track of all the pieces without Gust. Gust News Invested Interests angel investors David Rose Gust investments startup'

Angel Investor 89

Angel Investor Angel Groups Accredited Investor Early Stage 89

Gust

OCTOBER 17, 2011

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Outline multiple tranches.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Gust

NOVEMBER 29, 2011

But, before elaborating on crowd funding, let me share some of what I have learned in my thirty years of experience investing in new companies as an angel investor. More than 50% of companies funded by angel investors fail, with most returning nothing to investors.

Securities and Exchange Commission 154

Securities and Exchange Commission Accredited Investor Angel Investor Due Diligence 154

Gust

SEPTEMBER 3, 2014

Gust.com is the most widely used tool platform for both sides, with hundreds of thousands of companies and tens of thousands of investors using it to track and manage their relations with the other. Needless to say, the author of this post is completely biased, as I am the Founder & CEO of Gust ). Gust News Invested Interests'

Management 115

Management Vesting Angel Investor Venture Capital 115

Gust

DECEMBER 3, 2013

To me, the underlying reality is that startups and their founders are traceable on social media. Take it to the pitch moment, say a startup pitching a group of angel investors, which is a scene I see often. Startup founders will be judged by their social media footprint. Up-to-date investors understand that. .

Social Media 133

Social Media Angel Investor Startup Media 133

Gust

NOVEMBER 12, 2013

Here’s are some things I think every startup founder needs to keep in mind: You still need to deal with marketing. Investors will expect marketing to show up in your pitch, and if they like your pitch they’ll want your business plan and marketing better be there too. And don’t think you can just wave your hands at it.

Social Media 142

Social Media Media Curation Angel Investor 142

Gust

JANUARY 4, 2012

Many thanks to David Rose , Ilana Grossman , Justin Stanwix , and the whole Gust team for making the Gust Blog such a valuable platform and resource for entrepreneurs and angel investors. I’m proud to contribute to the effort and always enjoy reading what the other authors have to say.

Intellectual Property 143

Intellectual Property IP Startup United States 143

Gust

JULY 8, 2012

Don’t be embarrassed, since even professional investors are often confused these days by the new terms, as well as old terms used with new meanings. For a startup founder, this stage is when the “big idea” has become a passion for him, but he hasn’t written anything down yet. Early-stage startup.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Gust

JANUARY 9, 2013

I think it makes sense in a broad view, but my experience — as angel investor lately, as entrepreneur before that, and startup dabbler still — makes me think it should be skewed. It’s almost symmetrical in this drawing, and would be even more so if I had better tools (who wants to devise an equation? I just drew it.)

Startup 165

Startup Angel Groups Angel Investor Cofounder 165

Gust

JUNE 10, 2012

Even for low-tech startups, the scope of information available on the Internet, and its global reach, has had a similar financial impact on the many other challenges facing every startup founder. Founders now routinely use their home to operate their startup until they are well into the revenue phase. Facilities and staff.

Cost 139

Cost Burn Rate SEM Startup 139

Gust

SEPTEMBER 27, 2014

There are 450+ back episodes online, and it’s safe to say that if you listen to it regularly, within a few months you will know more about what makes angel investors tick than do 98% of the rest of the world…including other angels! Create your Gust profile to show off your venture in the best possible light.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Gust

OCTOBER 25, 2011

This might seem awkward on this site, suggesting that you don’t want angel investment. But angel investment isn’t for everybody. I’m an angel investor now, but I also had a small piece of co-founder equity in a software company that went public, and whole ownership of a software company that grew and prospered but remained private.

Cofounder 133

Cofounder Angel Investor Equity Software 133

Gust

JANUARY 30, 2013

I’m posting this here for two audiences: angel investors and founders (including would-be and wanna-be founders) of startups. . I was one of four judges, all of us members of local angel investment groups working with the gust.com platform. In two hours we had pitches and questions and answers.

Angel Investor 153

Angel Investor Startup Audience Community 153

Gust

SEPTEMBER 29, 2011

By contrast, venture capitalists and angel investors typically make scores or even hundreds of investments over the course of their careers. It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Gust

OCTOBER 29, 2014

That’s why one of the best options for you today is to join a local angel investor group, where you will work collegially with 25-250 other investors to hear pitches from companies, do your due diligence homework, and then—if you are interested—pool your money with the others to make meaningful investments.

Accredited Investor 157

Accredited Investor Securities and Exchange Commission Technical Review Due Diligence 157

Gust

SEPTEMBER 5, 2012

” Yet in my little corner of Wonksville, Founder Institute CEO Adeo Ressi and Yoichiro “Yokum” Taku , a partner at my “alma mater” law firm Wilson Sonsini Goodrich & Rosati , created quite a stir this past week by announcing a new set of template deal documents dubbed “ Convertible Equity.”

Finance 134

Finance Convertible Security Equity Seed Stage 134

Gust

OCTOBER 5, 2011

( Investors , of course, may disagree.). In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Gust

DECEMBER 27, 2012

The second reason is that investors want to know that YOU believe in your own startup…and the best way for you to demonstrate that is to show that you have personally put your own money where your mouth is. Your goal in all this is to try to find a lead investor.

Software Review 164

Software Review Term Sheet Technical Review Angel Investor 164

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000. A local network of angels is critical to achieving a diversified portfolio.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Gust

OCTOBER 21, 2011

In descending order of preference from the founders’ point of view: 1. Assuming a hypothetical $100,000 investment at a 10% interest rate, this kind of payoff would yield a return of $5,000 ( 5% ) six months later – not exactly the kind of return angel investors are looking for when they make risky early stage investments.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Gust

JULY 23, 2012

However, for investors and founders, it may be helpful to think outside the box when it comes to giving. Typically, Americans give cash when it comes to charitable contributions.

Stock 114

Stock Capital Gains Warrant Stock Options 114

Gust

DECEMBER 16, 2011

Hardly a founder now alive. The locked-up founders may never realize more than a tiny fraction of their paper net worth on that day they smile and ring the opening bell. Listen my children and you shall hear. Of IPO dreams once held so dear. Our forefathers’ jackpot, guaranteed to arrive. Can remember that famous yesteryear.

IPO 87

IPO .Net Social Network Mobile 87

Gust

DECEMBER 27, 2011

Here is the inverse, sometimes called reverse due diligence, describing what you should do to validate your investor before signing up for an equity partnership. I’ve had startup founders tell me that it’s only about the color of the money, but I disagree – particularly if you are desperate.

Due Diligence 119

Due Diligence Entrepreneur Offshore Angel Groups 119

Gust

DECEMBER 31, 2012

In addition to being startup founders, like Richard Branson , founder of more than 400 companies and still going strong, there are several other key roles that I see Boomers taking more often these days to drive successful startups: Advisory Board. Angel investor.

Advisory Board 177

Advisory Board Angel Investor Startup Equity 177

Gust

NOVEMBER 23, 2011

Startups and founders need to come to terms with the stark reality that the rules of the game may be changed mid-play. Talented entrepreneurs are nothing if not resilient in the face of change: Market forces, competitive threats, technological shifts, you name it.

IPO 110

IPO Prospectus SEC Intellectual Property 110

Gust

DECEMBER 22, 2013

Being a startup founder is not a job, but a lifestyle, like getting married versus staying single. In fact, it’s more like being single, since founders usually have no one to lean on, no one to make decisions for them, no one to blame, and no vision to follow but their own. Each of these has a cost in time an effort.

Entrepreneur 184

Entrepreneur Angel Investor Bootstrapping Venture Capital 184

Gust

SEPTEMBER 13, 2011

When we originally conceived of a single platform tying together the world’s entrepreneurs, angel investors, venture capitalists and supporting organizations , it quickly became apparent that the biggest challenge had nothing to do with technology.

Angel Investor 79

Angel Investor Silicon Valley Venture Capital Finance 79

Gust

JULY 1, 2012

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. In fact, many angels investors are also philanthropists, but the process of finding them and working with them in this context is totally different from the angel investment process.

Angel Groups 143

Angel Groups Angel Investor Early Stage Startup 143

Gust

OCTOBER 3, 2011

Once in, this money stays in, and is part of what makes up your Founder’s Equity (along with your work and your intellectual property.). A majority of companies that are started in the US begin and end with the first stage: the founders’ own money.

Finance 70

Finance Venture Capital Intellectual Property Early Stage 70