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NextView’s Greatest Hits

View from Seed

Magic Graph: How Much Seed Capital Should You Raise? “At some point, an entrepreneur begins to exhaust her network, and her network’s network, and the incremental hours devoted to fundraising will begin to yield less capital raised than the previous.” But it’s definitely a very small minority.”

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Angel Investors vs. Angel Groups

Business Plan Blog

It is a high net-worth individual who invests his or her own money directly into promising startup businesses in return for mostly equity share of the company. Download our free Raising Capital from Angel Investors eBook. This guide will walk you through the process of obtaining seed capital for your startup.

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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

Given that convertible debt financing has become the de facto standard for small (<$1MM), early stage deals in recent years, I thought I would write a primer on the elements of a term sheet and definitive documents for entrepreneurs looking at the earliest stage financing rounds. Let’s take it from the top: Why convertible notes?

Finance 178
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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. The above definition of accredited investors is being currently reviewed by the SEC in terms of current financial thresholds of income and net worth. 2) Giving equity in the company.

Finance 93
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Rolling Closes Versus Synchronous Closes

Haystack

Most of the rounds I participate in today are priced equity rounds. The equity round process bakes this in, and helps every participant to know what they’re raising or holding at any given point, dissuading the company from taking on additional capital without some burden.

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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

A term sheet keeps things relatively straightforward by summarizing the most significant deal terms in outline form, whereas the deal documents themselves (often referred to as definitive agreements ) — even for a relatively simple convertible debt financing — inevitably contain some densely written legalese.

Finance 79
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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. By definition, companies that receive venture capital cannot fund their businesses from operations, and thus need to seek outside capital.