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Choose Your VC Investor Carefully

Both Sides of the Table

For example, a recent phone call I had with a young entrepreneur straight out of one of the most prestigious engineering schools in America he asked, “I have an offer for $400,000 in seed money but the VC wants me to agree now to bring in a new CEO.&# This company is doing its SEED round and they already want to bring someone new in.

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Innovation at Argonne National Laboratory Incubator

The Startup Magazine

The program reduces research and development time and cost by allowing participants access to multi-million dollar equipment they likely would otherwise not be able to access. The Atlas technology could be 80 times cheaper than traditional nuclear batteries and has three times the energy conversion power. Source: Pexels.

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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. . ” The Cost of Financing. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Paying lawyers $50,000 when you are raising $500,000 doesn’t work.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Through comment conversations with many of you I tried to emphasize that it isn’t enough to just have one attribute. VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. You need the whole package. You have kids, a mortgage, MBA debt?

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Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. COGS” represents the amount that each sale costs you. They both raised angel / seed money of $1.5 What did they actually do?

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Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?

Gust

Assuming the company is able to make effective use of the seed money to greatly increase the value of the enterprise, all of that value therefore accrues to the founder, rather than the investor. That is a swing of 15x from the investor’s point of view!

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A conversation with Scott Kupor of Andreessen Horowitz, author and speaker at Lean Startup Conference 2019

Startup Lessons Learned

First, the introduction of seed money as an institutional form of capital. Before the mid-2000s, we mostly had individual angels writing small checks from their personal capital, but over the last 10-15 years we’ve seen hundreds of new institutional seed funds formed.

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