Gust
DECEMBER 15, 2013
Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. General startup expenses are beyond your means.
Gust
JULY 13, 2014
Every company needs to promote equity among all employee levels, and relate benefit levels to profit levels. But demanding benefits that sink the company is not the answer. Health care is a need, like water or food, and not a right. And like water or food, it isn’t free. “Someday this business will be mine anyway.”
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Gust
OCTOBER 21, 2011
For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.
Gust
DECEMBER 27, 2011
Here is the inverse, sometimes called reverse due diligence, describing what you should do to validate your investor before signing up for an equity partnership. Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand.
Gust
NOVEMBER 29, 2011
Consequently, US regulators have discouraged the selling of equity (shares) through crowd funding websites, so online companies, such as Kickstarter.com , offer the opportunity to donate funds to interesting US startup ventures in exchange for the right to become early product users or simply listed on the new ventures’ websites.
Gust
JULY 8, 2012
In the last year, there has been a resurgence of interest, some say a bubble, by both angels and VCs, in a pre-Series A kicker to identify promising startups with seed funding, before major equity has been given away. Early-stage startup. Every startup is early-stage to someone. Incremental investment may follow. Lean startup.
Gust
OCTOBER 12, 2011
Thus, it’s in everyone’s best interest to see the startup raise more capital rather than declaring default and demanding repayment. In rare cases where a startup is cash flow positive very early in its lifecycle, it may actually be able to pay off the notes without raising any equity investment.
Expert insights. Personalized for you.
183 
Let's personalize your content