Startup Professionals Musings

FEBRUARY 9, 2020

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. Or you can always bootstrap the idea yourself, get some traction, and build your first startup organically.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

OCTOBER 30, 2017

The “venture capital” model is the only option they know, where they feel they get no mercy, giving up equity and control. The basic categories include equity, straight debt, convertible debt, services, and agreements for future equity. Document the investment types you are willing to consider.

Technical Review 220

Technical Review Accredited Investor Due Diligence Equity 220

Startup Professionals Musings

MAY 18, 2020

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Startup Professionals Musings

NOVEMBER 3, 2014

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Hire experts, not help.

Bootstrapping 278

Bootstrapping Startup Merger .Net 278

Startup Professionals Musings

NOVEMBER 13, 2012

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Need expensive resources up front.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

ReadWriteStart

FEBRUARY 18, 2020

Instead, knowing how to bootstrap your startup might be a better option. How to Bootstrap Your Startup. When you bootstrap your startup, you retain full control of the new business. If bootstrapping is right for your small business, the following tips can help you through the process. Hire for Attitude.

Bootstrapping 145

Bootstrapping Startup Angel Investor Cofounder 145

SoCal CTO

MARCH 12, 2012

Okay, so now you have it narrowed down and have determined that you need: Part-Time CTO or Technology Advisor to help guide you and close a bit of the Startup Founder Developer Gap , and Equity-Only Cofounder Developer - the first real developer that will work for equity and produce the bulk of the application. Go to user groups.

Technical Cofounder 211

Technical Cofounder Cofounder CTO Hire Los Angeles 211

Startup Professionals Musings

SEPTEMBER 25, 2023

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

SEPTEMBER 22, 2011

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Need expensive resources up front.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

Startup Professionals Musings

APRIL 23, 2013

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Hire experts, not help.

Equity 241

Equity Bootstrapping Startup Merger 241

www.entrepreneur.com

SEPTEMBER 22, 2011

Human Resources Play Video Shark Tanks Barbara Corcoran on Bootstrapping a Growing a Business (Video). What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. July 31, 2007 |.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Startup Professionals Musings

APRIL 6, 2016

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. With one of the new free tools and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services.

Bootstrapping 120

Bootstrapping Hockey Stick Sweat Equity Intellectual Property 120

Gust

OCTOBER 26, 2014

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Hire experts, not help.

Bootstrapping 176

Bootstrapping Startup Merger Salary 176

The Startup Magazine

MARCH 21, 2022

Equity Financing. Another alternative for business financing is equity investment, in which investors buy a stake in your company. Bootstrapping. Another alternative is bootstrapping , which involves financing your company yourself, either through savings or by generating income. Hire a Consultant.

Business Plan 147

Business Plan Bootstrapping Equity Finance 147

Startup Professionals Musings

JULY 5, 2023

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. Obviously, if you bootstrap your business, you can avoid all the investment implications, but you still need a business plan and professional support.

Startup 305

Startup Incubator Exit Strategy Institutional Investors 305

Startup Professionals Musings

FEBRUARY 18, 2018

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. Or you can always bootstrap the idea yourself, get some traction, and build your first startup organically.

Technical Cofounder 144

Technical Cofounder Cofounder Advisory Board Startup 144

Startup Professionals Musings

APRIL 17, 2023

You are now entering the rollout stage , with money required for marketing, hiring a full-time team, and a production process. The new investors you need at this stage are investment bankers, private equity, or competitors, to buy you out via merger or acquisition (M&A), or to go public with an Initial Public Offering (IPO).

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

JUNE 11, 2014

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. Or you can always bootstrap the idea yourself, get some traction, and build your first startup organically.

Technical Cofounder 245

Technical Cofounder Cofounder Advisory Board Startup 245

Startup Professionals Musings

JANUARY 11, 2021

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Sweat Equity 346

Sweat Equity Elevator Pitch Equity Venture Capital 346

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. When you accept outside money, particularly a private equity (PE) investment, however, that changes. When you accept outside money, particularly a private equity (PE) investment, however, that changes.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

MARCH 16, 2016

Sweat equity. This unpaid work component is sized in dollars, added to any funds contributed, to represent the total contribution of a founding partner and converted to an equity ownership percentage in a new startup. Equity crowdfunding. Expect your skills, insights and motivation to be tested -- so be prepared.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

SEPTEMBER 26, 2010

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Hire experts, not help.

Bootstrapping 240

Bootstrapping Merger .Net Salary 240

Startup Professionals Musings

OCTOBER 12, 2020

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. Obviously, if you bootstrap your business, you can avoid all the investment implications, but you still need a business plan and professional support.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 21, 2011

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? The question is further complicated when the new hire is getting a salary. What about $Y/mo?&#

Equity 276

Equity Salary Hiring Institutional Investors 276

Hunter Walker

JUNE 10, 2016

We’ve bootstrapped since we launching. But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. Why give up that much equity for an amount we could raise other ways? ” In tech terms, our first 3 locations were phase 1, 2 & 3 MVPs. .”

Technical Review 50

Technical Review Equity SBA Software Review 50

Startup Professionals Musings

JULY 22, 2020

You are now entering the rollout stage , with money required for marketing, hiring a full-time team, and a production process. The new investors you need at this stage are investment bankers, private equity, or competitors, to buy you out via merger or acquisition (M&A), or to go public with an Initial Public Offering (IPO).

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

SEPTEMBER 13, 2015

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. Or you can always bootstrap the idea yourself, get some traction, and build your first startup organically.

Technical Cofounder 120

Technical Cofounder Cofounder Advisory Board Stock Options 120

Hunter Walker

JUNE 10, 2016

We’ve bootstrapped since we launching. But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. Why give up that much equity for an amount we could raise other ways? ” In tech terms, our first 3 locations were phase 1, 2 & 3 MVPs. .”

Technical Review 48

Technical Review Equity SBA Software Review 48

Spencer Fry

APRIL 17, 2017

Days before the conference started, I was asked (and felt honored) to lead two workshops on bootstrapping vs. raising money. Having started and sold 3 successful bootstrapped businesses, and am now running 1 venture capital backed business ( Coach ), this is a topic I know a thing or two about. What's “good” about bootstrapping.

Bootstrapping 63

Bootstrapping Cap Table Liquidation Preference Cofounder 63

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Our wheelhouse is bootstrapped (or lightly capitalized) SMB SaaS. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Tim Keane

MARCH 9, 2011

This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.    And, while debt is less costly than equity, it can bankrupt a company more quickly than more expensive equity might. Can you bootstrap your way to positive cash flow? This is an equity example, of course. 

Finance 83

Finance Bootstrapping Startup Equity 83

ReadWriteStart

OCTOBER 7, 2010

Bottom line, early stage equity is very, very expensive. 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. If you have to raise money, try to do so as convertible notes. HirePlug.com.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

The Next Web

AUGUST 26, 2013

Today, in steps 10-12 I want to discuss with you raising your first round of money, hiring to develop and maintain your company culture, as well as defining your role in the management of your startup. Raise your first round of money, or bootstrap. 15-20% equity for first investors. There are two ways to start a tech business.

Management 120

Management Cofounder Startup Bootstrapping 120

Austin Startup

FEBRUARY 13, 2019

Bootstrap if you can, for as long as you can As a startup you’ll likely fail. At this point, we had already developed the first phase of the platform by bootstrapping. Consider convertible debt Before diving into a seed round, you may want to consider convertible debt over equity financing.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

Austin Startup

SEPTEMBER 29, 2018

I was responsible for hiring the team, fundraising, establishing our Board of Directors and Advisors, and selling our initial clients. You need capital to hire sales people to capture your market quickly, or it is likely that someone else more aggressive will take the lead. Read my Lucky7 Bootstrap or VC?

Bootstrapping 52

Bootstrapping IPO Business Model Software Review 52

David Teten

JANUARY 21, 2021

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing. We plan to raise $2.5m

Equity 78

Equity Revenue Cofounder Colorado 78

Startup Professionals Musings

DECEMBER 28, 2018

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. Obviously, if you bootstrap your business, you can avoid all the investment implications, but you still need a business plan and professional support.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236