Up and Running

MARCH 14, 2018

Your revenue or business model. Is the investment you’re seeking a convertible note, an equity round, or something else? Your exit strategy. If you’re seeking large sums of investment capital (over $1M), most investors will want to know what your exit strategy is. How will you make money ?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

FEBRUARY 15, 2015

Angel investors and venture capitalists don’t make equity investments in non-profits. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. donation equity grant investment non-profit philantropy startup'

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Startup Professionals Musings

SEPTEMBER 15, 2012

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

JULY 3, 2011

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

JANUARY 4, 2020

Be prepared to explain your business model. Professional investors expect to see your top three use of funds categories, and how these relate to scaling the business, rather than initial development. How much equity ownership are you willing to offer? Can you justify your use of funds to this investor?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

MARCH 11, 2016

Come with a product built and a proven business model. Angel investors expect to review a short executive summary before booking time to hear an investor presentation or taking the time to analyze a full business plan. Have a full business plan and financial model to close the deal.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

JANUARY 27, 2021

Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes. By definition, angels are accredited investors, who invest their own money for a percentage of the business. Every angel looks to scale the business after you have funded product design, perhaps with friends and family.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

NOVEMBER 4, 2011

The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

www.inc.com

SEPTEMBER 24, 2011

Pricing Strategy. Financing A Small Business. Business Taxes. Selling A Business. Exit Strategies. Strategy and Planning. Strategy and Planning >. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Office and Operations. Legal Issues.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

JUNE 6, 2010

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

Startup Professionals Musings

SEPTEMBER 23, 2010

The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials. Your funding ask and exit strategy, if applicable. Be specific. Financial plan.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Startup Professionals Musings

JULY 27, 2018

This implies high odds of a scalable business, simply needing an investment to lead to success. Business model showing costs, pricing, and margins. These are not meant to be an accuracy test, but a check on your commitment level, understanding of business norms, and an assessment of company valuation over time.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Startup Professionals Musings

AUGUST 27, 2012

Business model. What equity is the company willing to give in return for the investment? Exit strategy. What is the planned exit strategy (IPO, merger, sale, including likely candidates)? What is the timeframe for the exit? Investors like $1B markets with double-digit growth rates.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

SEPTEMBER 5, 2016

You don’t have to fight for your equity, and no one can slow you down in decision making. A limited budget makes for a better business plan. Investors expect nothing less than a full-time commitment, even in the early stages when the business model has not yet been proven. Spread your equity internally to build the team.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Startup Professionals Musings

FEBRUARY 13, 2016

How does your business model make money? Good causes such as feeding the world’s hungry may help your marketing but may not sustain a business. The business model has to clearly define who is your customer, market penetration expected, how much customers pay versus total costs and the investment required to sustain cash flow.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

JUNE 10, 2011

Business model. What equity is the company willing to give in return for the investment? Exit strategy. What is the planned exit strategy (IPO, merger, sale, including likely candidates)? What is the timeframe for the exit? Investors like $1B markets with double-digit growth rates.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

The Startup Magazine

JANUARY 28, 2019

One of the most significant hurdles that many aspiring entrepreneurs must face involves raising capital to launch their business. With some business models, it may take many months or even a few years until the company can break even or turn a profit on a regular basis. This means that the funding amount may be substantial.

Entrepreneur 143

Entrepreneur Venture Capital Small Business Administration Exit Strategy 143

Startup Professionals Musings

MARCH 7, 2015

Be prepared to explain your business model. Professional investors expect to see your top three use of funds categories, and how these relate to scaling the business, rather than initial development. How much equity ownership are you willing to offer? Can you justify your use of funds to this investor?

Preferred Stock 120

Preferred Stock Exit Strategy Equity Angel Investor 120

Startup Professionals Musings

AUGUST 7, 2015

How the solution and business model work to fund the business. Investors will impatiently expect a winning business model, customer segment definitions and volume projections. Investors will impatiently expect a winning business model, customer segment definitions and volume projections.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

AUGUST 13, 2012

Explain the business model. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MAY 19, 2010

Business model. What equity is the company willing to give in return for the investment? Exit strategy. What is the planned exit strategy (IPO, merger, sale, including likely candidates)? What is the timeframe for the exit? Investors like $1B markets with double-digit growth rates.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

YoungUpstarts

DECEMBER 3, 2015

Innovation – particularly anything that can be patented or protected – will separate your Company from the competition, increase demand for your products or services, and increase your equity when it comes to thinking about your exit strategy. There’s no place in any business for me-too products or services.

Entrepreneur 100

Entrepreneur Advisory Board Equity Exit Strategy 100

Startup Professionals Musings

FEBRUARY 16, 2015

Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes. By definition, angels are accredited investors, who invest their own money for a percentage of the business. Every angel looks to scale the business after you have funded product design, perhaps with friends and family.

Angel Investor 120

Angel Investor Accredited Investor Venture Capital Startup 120

Startup Professionals Musings

DECEMBER 24, 2012

The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model.

Angel Investor 260

Angel Investor Intellectual Property Elevator Pitch Angel Groups 260

Startup Professionals Musings

MAY 13, 2011

Explain the business model. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Gust

AUGUST 19, 2012

Business model. What equity is the company willing to give in return for the investment? Exit strategy. What is the planned exit strategy (IPO, merger, sale, including likely candidates)? What is the timeframe for the exit? Investors like $1B markets with double-digit growth rates.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Steve Blank

SEPTEMBER 14, 2009

3) invest in and take equity stakes in exchange for capital. It may just be that the message of building companies that have predictable revenue and profit models hasn’t percolated through the VC business model. Each VC firm/partner has a different spin on what to weigh more.)

Silicon Valley 230

Silicon Valley IPO Technical Review Venture Capital 230

Startup Professionals Musings

APRIL 22, 2010

Explain the business model. Many people seem to use the social network advertising model for revenue, but forget it requires at least 100M users and $50M investment. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Gust

AUGUST 5, 2012

Explain the business model. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

DECEMBER 16, 2012

The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model.

Angel Investor 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

Startup Professionals Musings

JUNE 2, 2013

I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

MAY 15, 2018

Innovative products and business models are the foundations of a promising startup. Funding is crucial for improving technology, hiring the right people, and launching a comprehensive marketing strategy to get a foothold in the market. Creating a scalable business model. Determining how much money to ask for.

SBA 84

SBA Angel Investor Technical Review Startup 84

Gust

DECEMBER 28, 2011

And, extending the time to exit also increases the risk of failure – perhaps by being blind-sided by technology or a large competitor. Plan to prove your business model and get to positive cash flow with angel money and without VC investment.

IPO 153

IPO Venture Capital Entrepreneur Angel Investor 153

Up and Running

MAY 1, 2014

If your business model (i.e., “how If you are raising money to start or grow your business, you need to include the details of what you need in the executive summary. In addition to milestones and traction, your business plan should detail the key metrics that you will be watching as your business gets off the ground.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Tim Keane

APRIL 12, 2006

In each case, some sort of “exit strategy” will be part of the structure. The percentage owned by the entrepreneur after the investment has been made is the “sweat equity” that represents the work the entrepreneur has done to get to this point. Second, the fundamental question about the percentage for the equity is value.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60