Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

The Startup Magazine

JANUARY 24, 2020

From finding a qualified pool of applicants to interviewing, verifying references, and filing the hiring paperwork, just managing and recruiting employees is a full time job. While opting out of these things might seem like a good way to save money, you might find that it costs you more money down the road if a legal issue arises.

Software Review 143

Software Review Startup Technical Review Hiring 143

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

The Startup Magazine

MAY 11, 2020

Whether you are new in business or an established entrepreneur, you need to be diligent with your finances. There are several reasons a bank will reject financing applications, but the most common is a low credit score. If your business credit score is low, applying for a bad credit loan can help you secure the financing you need.

Software Review 105

Software Review Small Business Management Bankruptcy 105

The Startup Magazine

JUNE 14, 2019

If you have been self-employed, you probably have had episodes where you cannot clearly differentiate between work and personal finances or time. In matters finance, it could leave you or your business in a financial mess. The new balance should be added to the owner’s equity on the balance sheet. 4. Plan ahead.

Balance Sheet 128

Balance Sheet Limited Liability Company Bootstrapping Startup 128

YoungUpstarts

JULY 6, 2017

Once you learn about all of your financing options, you could choose the one best suited to help your business grow. ANGEL INVESTOR : These are individuals who offer capital to startups in exchange for equity, partial ownership or convertible debt. By self-financing, you can maintain control of your startup.

Syndicate 127

Syndicate Syndication Software Review Angel Investor 127

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  2]   Aligning interests in structure: cost and risk. Align Everyone’s Interests.

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

www.seriesseed.com

MARCH 2, 2010

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing. In sum, Series Seed creates a level playing field between capped debt and equity documents in terms of speed and cost. 

Finance 58

Finance Term Sheet Equity Aggregator 58

Up and Running

JUNE 13, 2017

The explanation for the discrepancy is simple: large banks are focused on sourcing and scaling loans over one million dollars, cross-selling products to their customers, and driving down costs through standardized operating procedures and technology. CDFI program awardees financed 13,300 businesses. Meet the community lenders.

Community 117

Community Technical Review United States New York City 117

YoungUpstarts

DECEMBER 7, 2017

It’s a great tool for companies to introduce a new brand and test product-market-fit in an early, low-risk environment; cultivate a group of early adopters who become product evangelists and provide crucial feedback and support; get early customer feedback on product concept and design and build brand equity for a product.

Campaign 145

Campaign San Francisco Technical Review Flash 145

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. We went with equity because ivestors would prefer to get equity for the following reasons: 1. SeriesSeed.com. Blog Archives. Reblog (1).

Finance 40

Finance Term Sheet Vesting LLC 40

The Next Web

OCTOBER 7, 2013

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Layer on the opportunity cost of choosing not to pursue lucrative alternatives offered elsewhere, and it’s easy to see how, if not under the right terms, the engineer #1 position is less than appealing.

Engineer 129

Engineer Dilution Option Pool Vesting 129

The Startup Magazine

MAY 19, 2020

A stock, which can also be referred to as a share or equity, is a proof of ownership of a fraction or part of a business entity. Stockbroking is the process of buying and selling financial securities like shares, stocks, and bonds via the stock market through a dealer who is generally referred to as a stockbroker.

Stock 90

Stock Securities and Exchange Commission United Kingdom Technical Review 90

The Startup Magazine

APRIL 22, 2019

Bootstrapping your startup often means you scrape together your cash, and often tapping your home equity value. It’s the location, height, view, lights and various other factors that go in to determine the home equity value of any private place. Photo by Jacky Chiu on Unsplash. Height of the floors.

Equity 89

Equity New York City New York Startup 89

The Startup Magazine

JUNE 20, 2023

Your energies are focused on growing your company – carefully allocating resources, diligently tracking expenses and cash flow, looking for cost-effective solutions, and prioritising investments that yield the highest returns. There seems to be little time for anything else. How much income should you be aiming for?

Dividend 145

Dividend Portfolio Equity Government 145

ReadWriteStart

OCTOBER 7, 2010

Bottom line, early stage equity is very, very expensive. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Eric Friedman

JUNE 27, 2016

Bigger/better advisors who get more equity have things like; excellent domain expertise to help you avoid pitfalls, deep connections within the industry to help with the intros, partnerships, and more. Advisors refer to these percentages as “basis points” such as “25 basis points” which equals 0.25%. from a 10 year old co.

Equity 98

Equity Vesting Cap Table Common Stock 98

Up and Running

JUNE 17, 2019

No doubt you refer to your income statement (also called profit and loss statement or P&L) and your bank account for the basics. . The business income statement, also referred to as a profit and loss (P&L) statement, is a useful tool for providing an overview of how your business is doing over time.

Balance Sheet 120

Balance Sheet Small Business Finance .Net 120

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Convertible equity? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” A convertible note financing is not a loan in the conventional sense. Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

YoungUpstarts

APRIL 5, 2018

The same principles can be used in finance and hedging financial deals is routine for investors and businesses alike. Hedge funds today are better known for investing in distressed companies before turning them around or investing private equity in businesses that others cannot invest in. Here is an expert guide to financial hedging.

Private Equity 145

Private Equity Equity Valuation Differentiation 145

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog.   That’s because there are not that many issues to negotiate in a simple equity financing.   With Series Seed: ·    Costs should be roughly the same (if not cheaper) than using industry standard debt documents.  SeriesSeed.com. Blog Archives. 09/02/2010.

Term Sheet 40

Term Sheet Ratchet Dilution Equity 40

Steve Blank

FEBRUARY 26, 2020

Btw, the definition of each startup financing stage has changed in the last decade. These elements of the business model– revenue (pricing, pricing strategy), distribution channel, How to Get/Keep/Grow customers, Key Activities, Resources and Costs – are other, critical parts your start up needs to understand and have in place.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

David Teten

NOVEMBER 14, 2019

I wrote recently about Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? That said, venture capital is just one of many options to finance your business, and it’s typically the most expensive. The first step is to decide the right capital structure for your financing.

SBIC 60

SBIC SBA Cap Table Database 60

Up and Running

APRIL 2, 2015

I was really disappointed when I needed my company’s first commercial bank loan to finance receivables of more than $1 million—from well-known distributors no less—and we ended up having to sign a lien on our family home to get the loan. Well, the bank is going to want a lot before they give it to you. Do you find this daunting?

Balance Sheet 60

Balance Sheet SBA Covenant Technical Review 60

The Startup Magazine

MAY 16, 2022

One of the most crucial elements of trading is setting a risk tolerance , which refers to how much money you’re prepared to lose on any specific trade. A lack of experience also means you may enter trades without knowing when exactly to close it, which can cost you a certain amount of money. Lack of education.

Stock 142

Stock New York Portfolio Equity 142

Up and Running

AUGUST 28, 2018

In the medical field, this Lean Plan idea is also sometimes called a proforma, though a proforma sometimes refers specifically to the financial part of the plan. Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. When writing your financial plan, make sure to consider startup costs.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Up and Running

FEBRUARY 12, 2014

No doubt you refer to your income statement and your bank account for the basics, but the truth is most businesses ignore the most powerful financial tools in the accounting arsenal: the balance sheet and the cash flow statement. Not just what your business owns, but what it controls or what is in its possession, such as a financed vehicle.

Balance Sheet 136

Balance Sheet Small Business .Net Finance 136

Up and Running

JUNE 25, 2014

Hopefully I’ll be able to add some value with some of the financing needs that your businesses may need. Then we look at what the small business financing needs. “How do I tackle my financing needs as a startup?” I think there is a process where you can participate via Twitter, or ask questions. Scott: Okay.

Small Business 89

Small Business SBA Finance Bankruptcy 89

Up and Running

APRIL 8, 2013

The key thing is that the estimated return on the project must meet or exceed the cost of the external capital; otherwise the project is not worth undertaking. External capital sources come in three flavors: debt, equity and alternatives. Equity is a cash investment in exchange for a percentage ownership of the company.

Equity 82

Equity Covenant Venture Capital Finance 82

steveblank.com

JULY 8, 2011

Managewith.us - Collaborative Task Manager Mavenlink - manage project communications, documents, schedules, budgets, payments Industrial Logic – Agile eLearning Misc Office Help Google Apps – cloud mail server, calendar, docs, etc.

Software Review 110

Software Review Startup Silicon Valley Analytics 110

Both Sides of the Table

APRIL 25, 2011

It’s nearly impossible to get a services company financed by VCs. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed. You’re a small fish. This team is talented. They wanted advice.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. But I used to jokingly refer to bridge loans as “pier&# loans.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290