Startup Professionals Musings

OCTOBER 17, 2022

Examples of some leaders in this space include Ron Conway in Silicon Valley and Jeff Bezos , CEO of Amazon, who each may have over 500 startups in their portfolio. The cost of entry for tech startups continues to go down. Mobile and web software apps may cost even less.

Angel Investor 342

Angel Investor Silicon Valley Venture Capital Portfolio 342

Startup Professionals Musings

SEPTEMBER 11, 2020

According to the International Business Innovation Association ( InBIA ), there are over 2,200 of these locations worldwide, and new online versions springing up all over the place, like Founders Space in Silicon Valley. Direct seed funding, for a share of the equity, and introductions to investors.

Incubator 398

Incubator Silicon Valley North America Startup 398

Startup Professionals Musings

MARCH 15, 2023

The simple answer is that with all the staging of TV lights and billionaire investors, it’s nothing like Silicon Valley. Investors want to hear a quantified problem, a simple solution description, opportunity size, competition, traction, team qualifications, how much money you need, and what equity you are willing to give.

Entrepreneur 279

Entrepreneur Angel Investor Due Diligence Silicon Valley 279

Startup Professionals Musings

DECEMBER 14, 2022

I’m convinced that the following personal strategies are required and practiced by every successful business leader, regardless of Silicon Valley myths to the contrary: Lead with business and technical acumen for people who count. Smart business people learn to quickly recognize negative personality types, and avoid them at all costs.

Silicon Valley 284

Silicon Valley Bandwidth Angel Investor Equity 284

Steve Blank

MARCH 12, 2014

We realized that past K-12 Entrepreneurial classes taught students “the lemonade stand” version of how to start a company: 1) come up with an idea, 2) execute the idea, 3) do the accounting (revenue, costs, etc.). We wanted to teach our students how to think like entrepreneurs not accountants.

Lean 334

Lean Customer Development Startup Silicon Valley 334

Up and Running

APRIL 25, 2014

The cast of “Silicon Valley” Image credit: HBO. Silicon Valley is a crazy place. I’ve opted not to return to the Valley for various reasons, but still have plenty of friends who work there and return regularly for business meetings. But should most Silicon Valley companies skip the planning process?

Silicon Valley 104

Silicon Valley Business Plan Entrepreneur Cap Table 104

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. You make all the decisions, when you want, how you want.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

YoungUpstarts

OCTOBER 28, 2015

They also need to decide whether to structure terms as an equity deal or a convertible security deal. ” The Cost of Financing. .” ” The Cost of Financing. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Even $15-20,000 is too expensive.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

The Startup Magazine

MARCH 10, 2018

However, what you don’t need is lawyers’ prohibitive fees, which can cost your startup hundreds of thousands of dollars — even millions — in just the first few years. Though most extant legal software solutions target law firms, there are some applications startups can use to reduce their legal costs. This might not always be the case.

Software Review 70

Software Review Technical Review Artificial Inteligence Software 70

View from Seed

APRIL 30, 2015

It can be lower cost and can either buy more time or accelerate growth. Below, we talk to Glen Mello , Managing Director of Silicon Valley Bank’s accelerator team in Boston. Glen Mello: Venture debt is a good complement to equity. What is it, and how should founders think about it? What are some pros and cons?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Austin Startup

MARCH 4, 2019

Official SXSW Panels and Speakers SXSW Badge Required Watch Out Silicon Valley: Rising LATAM Tech Scene Watch Out Silicon Valley: Rising LATAM Tech Scene MAR 8, 2019 | 12:30PM?—?1:30PM public, private, debt, equity, market return, concessionary capital, etc. Wednesday, March 13 Every day 10:00am-5:00pm.

Silicon Valley 50

Silicon Valley Technical Review Texas Venture Capital 50

Up and Running

AUGUST 21, 2017

VCs don’t expect any serious corrections to valuations in 2017 and they seem to be taking financial discipline in later-stage companies more seriously, valuing unit economics over “growth at any cost.”. Be prepared to give up equity: Investors increasingly want a larger slice of the pie in exchange for the working capital they provide.

Silicon Valley 86

Silicon Valley Venture Capital Valuation Later Stage 86

Gust

NOVEMBER 8, 2012

As a native of Silicon Valley , I’ve witnessed the creative destruction of wave after wave of innovation as nearby corporate campuses repopulated themselves : From defense contractors to data centers , computer mainframe manufacturers to Internet search engines. Most of the technology industry is notoriously apolitical.

Silicon Valley 187

Silicon Valley San Francisco Intellectual Property Accredited Investor 187

Startup Professionals Musings

JANUARY 19, 2020

Examples of some leaders in this space include Ron Conway in Silicon Valley and Jeff Bezos , CEO of Amazon, who each may have over 500 startups in their portfolio. The cost of entry for tech startups continues to go down. Mobile and web software apps may cost even less.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Startup Professionals Musings

JUNE 14, 2020

The simple answer is that with all the staging of TV lights and billionaire investors, it’s nothing like Silicon Valley. Investors want to hear a quantified problem, a simple solution description, opportunity size, competition, traction, team qualifications, how much money you need, and what equity you are willing to give.

Angel Investor 317

Angel Investor Due Diligence Silicon Valley Green 317

Startup Professionals Musings

MARCH 16, 2020

I’m convinced that the following personal strategies are required and practiced by every successful business leader, regardless of Silicon Valley myths to the contrary: Lead with business and technical acumen for people who count. Smart business people learn to quickly recognize negative personality types, and avoid them at all costs.

Silicon Valley 312

Silicon Valley Bandwidth Angel Investor Equity 312

ReadWriteStart

DECEMBER 9, 2010

First, there are two primary aspects that have to be managed: inventory financing and customer acquisition costs. Well, all that costs money, I would like to see a more cost-effective customer acquisition strategy. Should those entrepreneurs who have built their business elsewhere move to Silicon Valley to raise money?

Silicon Valley 117

Silicon Valley Malaysia India China 117

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. The best and most consistent funds in Silicon Valley (e.g. Many firms didn’t even return LPs their original money let along a profit. VC will shrink.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

JANUARY 21, 2010

You never got around to agreeing exact equity splits but you had many conversations about it. Right sized : I tried to work with one of the best known firms in Silicon Valley. He’s totally tapped into the startup communities in Silicon Valley and a bit in LA. So it doesn’t have to be a small firm.

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Southern California Silicon Valley IP Stock Options 318

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 Well, I don't.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

www.drowningamerican.com

JUNE 22, 2012

Next → How to Hire for Sweat Equity…. model of offering a more valuable product at no cost to the user (think Mint.Com). That being said the following is available to the right candidate: • 3-5% equity in the company (based on experience). • $50,000/year salary once we obtain funding (target: January, 2010).

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Repaid 12-36 months with ability to prepay at reduced cost. Capital need of up to $1.5M

Revenue 60

Revenue Technical Review Software Review Equity 60

ReadWriteStart

DECEMBER 24, 2012

From [link] to the Silicon Taiga , these programs offer entrepreneurs funding, infrastructure and support in an effort to lure a critical mass of promising young companies and spawn the next Silicon Valley. The Dropboxes and Instagrams of the world still flock to the original Silicon Valley. None has succeeded.

Silicon Valley 60

Silicon Valley Ireland South Africa Belarus 60

Startup Professionals Musings

NOVEMBER 4, 2018

According to the International Business Innovation Association ( InBIA ), there are over 2,200 of these locations worldwide, and new online versions springing up all over the place, like Founders Space in Silicon Valley. Direct seed funding, for a share of the equity, and introductions to investors.

Incubator 218

Incubator Silicon Valley North America Small Business Administration 218

David Teten

JANUARY 9, 2018

Most of the other VC firms with a history of picking unicorns have significantly benefited from being based in Silicon Valley, having much larger investment teams, and having multi-decade Tier-1 reputations, which has led to them seeing most of the best deals in the market. – Incubating companies.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

David Teten

JANUARY 9, 2018

Most of the other VC firms with a history of picking unicorns have significantly benefited from being based in Silicon Valley, having much larger investment teams, and having multi-decade Tier-1 reputations, which has led to them seeing most of the best deals in the market. – Incubating companies.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

Diego Basch

JUNE 21, 2012

I believe that Silicon Valley is like Las Vegas, except they make you pass a number of tests before they let you gamble. The purpose of this post is to analyze the folowing problem: Joe Founder comes to Silicon Valley with a laptop full of dreams, but no money. What should Joe do? In other words, money problem solved.

Silicon Valley 78

Silicon Valley Las Vegas San Francisco Vesting 78

Steve Blank

NOVEMBER 27, 2012

Visitors Guide to Silicon Valley. I got tired watching dignitaries fly into Silicon Valley, visit Google, Facebook, Apple, and Stanford and then say they understand startups and entrepreneurship. So for the rest of us I put together this Visitors Guide to Silicon Valley. Secret History of Silicon Valley.

Open Source 335

Open Source Silicon Valley Lean Customer Development 335

Haystack

DECEMBER 29, 2018

And as more economies worldwide seek to shift their investment strategies offshore and seek out technology, hubs like Silicon Valley and Shanghai, among others, have reaped the benefits. During this time, there’s financial leverage used in the transaction to help buffer the firm’s cost of capital (e.g.

Technical Review 165

Technical Review Venture Capital Russia China 165

Growthink Blog

APRIL 25, 2011

On Friday Silicon Valley Bank released a survey of 375 executives at startup technology companies in the 4 core venture capital investment sectors – Software/Internet, Hardware, Life Science, and Cleantech. In fact, the main competitive advantage that these startup executives see for doing business overseas is cost. Are Bullish.

Silicon Valley 69

Silicon Valley Ratchet Private Equity Startup 69

Austin Startup

NOVEMBER 6, 2017

C-Corp largely because (i) VCs have historically favored C-Corps for nuanced tax and other reasons, and (ii) virtually all of the standardized legal infrastructure around startup finance and equity compensation assumes a C-Corp. But going in the opposite direction costs you significantly. However, times are changing.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Hippoland

JANUARY 4, 2017

Equity Traditionally, investors have invested in companies to receive equity, or shares in a company. The concept of equity rounds (also called priced rounds) is very straightforward. And as you raise money at later stages, you will most likely be raising equity rounds. The results are binary.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

The Equity Kicker

SEPTEMBER 26, 2012

Nic Brisbourne explains how the falling cost of doing business in tech is making space for thriving regional ecosystems, calling for better local funds in these new emerging hubs. At the same time we have seen the start-up ecosystems in New York, London and Berlin emerge as meaningful competitors to Silicon Valley.

Silicon Valley 97

Silicon Valley Cost Startup Boston 97

Steve Blank

DECEMBER 11, 2023

No Knowledge of Computers Silicon Valley emerged from work in World War II led by Stanford professor Fred Terman developing microwave and electronics for Electronic Warfare systems. Silicon Valley wouldn’t have a computer company until 1966 when Hewlett Packard shipped the HP 2116 minicomputer. Costing $250,000 ($3.2

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Minnesota Engineer Minneapolis Silicon Valley 281

ReadWriteStart

MARCH 29, 2023

A well-detailed business plan, a launch plan, early funding, and the right talent and equity from founders are all among the basic ingredients that can help get a startup off the ground. Fees And Costs Another thing that comes to mind when choosing a bank is how much you will end up paying in fees and additional bank account charges.

Artificial Inteligence 129

Artificial Inteligence Startup Silicon Valley Small Business 129

Startup Professionals Musings

DECEMBER 27, 2014

Examples of some leaders in this space include Ron Conway in Silicon Valley and Brian Cohen , chairman of the New York Angels, who each may have over 500 startups in their portfolio. The cost of entry for tech startups continues to go down. Mobile and web software apps may cost even less.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Scalable Startup

AUGUST 9, 2018

Pre-launch funding is pretty common in Silicon Valley, but that’s a unique case. But to get that Silicon Valley angel funding you have to be part of that social network; most of the rest of the world doesn’t have that frothy environment. They’re betting on you. Option Two: Post-Launch?—?Raise

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20