Startup Professionals Musings

JULY 5, 2023

Some entrepreneurs start polling venture capitalists for that multi-million-dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

MARCH 3, 2021

Based on my own years of experience in startups and big business, and more recently as an angel investor, I often cringe when I see one of you entrepreneurs missing a cue that I have seen work for many before you. A passionate entrepreneur I met a while back had found that a certain algae could be grown cheaply, and could end world hunger.

Exit Strategy 406

Exit Strategy Merger Angel Investor IPO 406

Up and Running

MARCH 14, 2018

I’ve seen too many entrepreneurs think, “Oh, I know my business inside and out—pitching will be a breeze!” I’ve seen many entrepreneurs crash and burn when delivering their investor pitch—and ramble on and on. How much will it cost? Your financials should easily allow you to calculate your customer acquisition costs.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

OCTOBER 7, 2022

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer? How much do you really need for the next 12 to 18 months?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

AUGUST 23, 2021

Most aspiring entrepreneurs I know are just waiting for that unique idea to strike them that will kickstart their new venture, put them in control of their lifestyle, achieve financial independence, and maybe even change the world. The return was far greater than the cost of donated shoes.

Startup 399

Startup Exit Strategy Cofounder Equity 399

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . 9) Time, market, and exit investment.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

OCTOBER 12, 2020

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

Startup Professionals Musings

JANUARY 4, 2020

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer? How much do you really need for the next 12 to 18 months?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Up and Running

JANUARY 2, 2013

I’ve seen too many entrepreneurs think, “oh, I know my business inside and out – pitching will be a breeze!” I’ve also seen many entrepreneurs crash and burn when delivering their investor pitch – and ramble on and on. How much will it cost? ” Good luck! How will you measure success?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

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. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not. Line up an experienced team. Build a prototype product.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

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.). 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

www.inc.com

SEPTEMBER 24, 2011

Entrepreneur news from reporter Eric Markowitz. Pricing Strategy. Exit Strategies. Strategy and Planning. Growth Strategies >. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

www.inc.com

SEPTEMBER 24, 2011

Entrepreneur news from reporter Eric Markowitz. Pricing Strategy. Exit Strategies. Strategy and Planning. Strategy and Planning >. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not. Tags: entrepreneur startup funding angel investors.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

JUNE 15, 2013

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services. Marty Zwilling.

Incubator 256

Incubator Entrepreneur Exit Strategy Institutional Investors 256

Startup Professionals Musings

JULY 5, 2011

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control.

Exit Strategy 235

Exit Strategy IPO Investment Bankers Entrepreneur 235

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. Exit strategy : You only need this if you’re seeking outside investment. When writing your financial plan, make sure to consider startup costs.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Startup Professionals Musings

SEPTEMBER 5, 2016

In my experience as an advisor to aspiring entrepreneurs, I often encounter the myth that an initial startup requires investors. The media tends to highlight experienced entrepreneurs who succeed with early new venture funding, like Uber’s Garrett Camp , but fail to point out the more common bootstrapping successes.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Startup Professionals Musings

DECEMBER 28, 2018

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

YoungUpstarts

NOVEMBER 22, 2019

A traditional bank loan is one of the first sources most entrepreneurs turn to. You can extend this pool of funds by taking out a home equity line of credit. Many entrepreneurs ask their friends and family to invest in their business venture. But this will cost you in terms of control. Traditional Bank Loan. Crowdfunding.

Finance 194

Finance Small Business Angel Investor Exit Strategy 194

Up and Running

AUGUST 19, 2014

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Many angels are entrepreneurs themselves, or executives and business or community leaders. I am impressed when the entrepreneur talks to me about solving a specific customer’s problem.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Startup Professionals Musings

JULY 3, 2015

The visibility of Google, Facebook and a few others continues to propagate the myth that the ultimate objective of every entrepreneur should be to take their startups public via an initial public offering at the earliest opportunity. All strategy and operational moves become public. Public expectation of growth every quarter.

IPO 120

IPO Initial Public Offering Entrepreneur Private Equity 120

Up and Running

MAY 15, 2018

As an entrepreneur, you will face several challenges while seeking the funds, in part because you’ll have to convince others that your idea is a solid investment. This means being able to increase profits without increasing costs at an equal (or higher) rate. However, sourcing enough money to start your new venture can be difficult.

SBA 84

SBA Angel Investor Technical Review Startup 84

Startup Professionals Musings

NOVEMBER 4, 2013

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control.

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

Startup Professionals Musings

AUGUST 17, 2014

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Gross margins greater than 50%.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

JULY 27, 2018

I’m still amazed at how many technical entrepreneurs don’t have a business pitch, and offer me their product pitch or product spec instead. Business model showing costs, pricing, and margins. Solo entrepreneurs have a hard time finding an investor. Specific investment size request, and equity offered.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Startup Professionals Musings

MAY 28, 2013

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Gross margins greater than 50%.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Startup Professionals Musings

AUGUST 29, 2016

Most entrepreneurs I know are so passionate about their new idea that they are surprised when family and friends don’t line up to invest in their new venture. The reality is that investors, including myself, believe that the entrepreneur is more key to business success than the idea. Demos and prototypes are key.

Elevator Pitch 151

Elevator Pitch Exit Strategy Angel Investor Equity 151

Up and Running

MAY 1, 2014

The vast majority of business owners and entrepreneurs aren’t business experts. One of the biggest mistakes entrepreneurs make in their business plans is stating that they don’t have any competition. You can look at your costs and then mark up your offering from there. > Don’t be intimidated.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Gust

AUGUST 10, 2014

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they cant deliver, and having no clue what investors might consider reasonable. Here are some basic rules of thumb that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Image via pixabay.com.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

We entrepreneurs love ridiculing big companies for their inability to innovate , and we’re right. On the flip side, entrepreneurs are an unknown quantity which typically doesn’t fit well into corporate culture, so that will inevitably come to a head. What does the buyer want with your company?

Sales 260

Sales Channel Cofounder Valuation 260

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

NOVEMBER 27, 2016

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services.

Incubator 120

Incubator Startup Exit Strategy Institutional Investors 120

Startup Professionals Musings

MAY 16, 2012

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility for when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services.

Incubator 237

Incubator Startup Exit Strategy Institutional Investors 237

Startup Professionals Musings

MARCH 7, 2015

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer? entrepreneur funding request investors startup stage'

Preferred Stock 120

Preferred Stock Exit Strategy Equity Angel Investor 120

Startup Professionals Musings

AUGUST 27, 2012

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. 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)? Solution product & technology.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

MAY 13, 2011

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290