Gust

NOVEMBER 22, 2011

Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. This is the realm of venture capital professional investors, with funding amounts of $1-10 million, often referred to as the “A-round,” or first institutional funding. Funding or rollout stage. Exit stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Gust

NOVEMBER 15, 2011

The Ohio TechAngels describe the method, as follow: ”Reflecting the premise that the higher the number of risk factors, then the higher the overall risk, this method forces investors to think about the various types of risks which a particular venture must manage in order to achieve a lucrative exit.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

Gust

NOVEMBER 29, 2011

Experienced angel and venture capital investors spend lot of time independently evaluating the investment opportunities (a process called “due diligence”). Crowd investors will not be in a position to demand board representation on new companies and will likely suffer from lack of feedback from funded companies.

Securities and Exchange Commission 154

Securities and Exchange Commission Accredited Investor Angel Investor Due Diligence 154

Gust

OCTOBER 8, 2014

Entrepreneurs started demanding that VCs call their first-round financings “seed” rounds even if they were $3 million. Invested Interests cap table venture capital' So VCs started writing some smaller A-rounds. If you want a great primer on how the VC and startup funding scene changed here’s a great primer.

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Gust

DECEMBER 29, 2013

Some entrepreneurs can’t decide if they want to be a Limited Liability Corporation (LLC) or a C-corporation, or they don’t have the money, so they put off doing anything until the first venture capital round, or until the first lawsuit occurs. The simple answer is to do something, and start simple.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

Gust

DECEMBER 5, 2011

Too many entrepreneurs develop a new product without regard for market demand , then build an entire strategy based on creating a need, rather than acting on an existing market need. Investors characterize this approach as a “solution looking for a problem.” These don’t get funded.

Technology 167

Technology Angel Investor Early Stage Viral 167

Gust

DECEMBER 23, 2011

There’s no better test of how well your idea works, nor any better way of iterating it to real market demand, than to watch how the checks come in. Ventures with easy access to cash have the often-fatal luxury of setting the wrong priorities.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127