Startup Professionals Musings

JUNE 2, 2013

How do you as an entrepreneur with a new idea get to be one of those choices? That means there are far more entrepreneurs looking for money than there are investors, and entrepreneur entitlement is not a realistic expectation. Here are the top five, as outlined by Rice in his book, which match my own experience: Management team.

Angel Investor 269

Angel Investor Cram Down Intellectual Property Venture Capital 269

Both Sides of the Table

APRIL 20, 2011

They chose the name First Round Capital because they thought capital would be deployed most efficiently at smaller seed stage rounds considering the cost to build an internet business had come down drastically. He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.

Lean 259

Lean Silicon Valley Startup RSS 259

Both Sides of the Table

MAY 5, 2013

million and only manage to get $750,000. Often that is a good incentive because it keeps VCs from screwing people over since a bad reputation or bad working relationships could cost you deals in the future. I always tell entrepreneurs, “ Clean Your Own S**t Up First. ” What does that mean?

Down Round 302

Down Round Cram Down Valuation Reputation 302

The Next Web

SEPTEMBER 29, 2013

Howard Marks is a serial entrepreneur and Managing Director of LA tech accelerator StartEngine. They argue that as an entrepreneur you’re always being chased by competitors and want to be a first mover. New entrepreneurs, no matter how much money they receive, should try to stay in discovery mode as long as possible.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. All live happily ever after.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112