Remove Burn Rate Remove Equity Remove Finance Remove Government
article thumbnail

Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. So why would you treat your debt investors (somewhat) like equity investors?

Burn Rate 152
article thumbnail

10 Incentives For Entrepreneurs To Bootstrap Their Startup

Startup Professionals Musings

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. You will squeeze harder on your own dollars than investor dollars.

Insiders

Sign Up for our Newsletter

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

article thumbnail

10 Reasons for a Startup to Skip Outside Investors

Startup Professionals Musings

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. You will squeeze harder on your own dollars than investor dollars.

Startup 264
article thumbnail

10 Incentives For Entrepreneurs To Bootstrap Their Startup

Gust

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier. You will squeeze harder on your own dollars than investor dollars.

article thumbnail

ProfessorVC: Bootstrapping 101

Professor VC

We dont know the end of the story, but they have built a real business with hundres of machines sold to gyms all over the world along with government contracts for military purchases. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.

article thumbnail

On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate.

IPO 40
article thumbnail

ProfessorVC: Crowdfunding - Good Idea or Really, Really Stupid.

Professor VC

I cant remember if the SEC was one of the government agencies that Rick Perry wants to get rid of (but neither can he ), but it seems like this is the exact type of investor that the SEC was set up to protect. Angel investments are highly risky and I would estimate that over 90% provide no return to equity investors. 7.5 - 10.5%

SEC 54