article thumbnail

6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them.

article thumbnail

The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them.

Cram Down 148
Insiders

Sign Up for our Newsletter

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

article thumbnail

Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them.

Founder 254
article thumbnail

Don’t Hurt Friends and Family Investors Who Love You

Startup Professionals Musings

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them.

Cram Down 230
article thumbnail

How To Take Money From Friends And Still Be Friends

Startup Professionals Musings

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them.

Cram Down 120
article thumbnail

The Biggest Threats to My Business

Rob Go

This forces some level of intellectual honestly about one’s position in the market, and can push you to try to see around corners and respond. In a frothy market, rounds can get done in this way at pretty high prices (or valuation caps for notes) albeit with less value-added investors involved. Getting Crammed Down.

article thumbnail

Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. Technical progress and market traction are much slower and cost a lot more than anticipated. The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1.