Startup Professionals Musings

SEPTEMBER 10, 2014

While I recognize that there continues to be a shortage of venture capital for new entrepreneurs, compared to the demand, don’t succumb to the temptation to take funds from investors that you are not totally comfortable with.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

JUNE 5, 2021

Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). But sometimes higher prices create higher demand, causing a boom. In startups, a great success like Google causes busts by stimulating more supply, without regard to demand. Cheap money. Policy-driven distortions.

Demand 362

Demand Government Venture Capital Valuation 362

Startup Professionals Musings

SEPTEMBER 11, 2023

As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. Crowdfunding to gauge demand is not recommended, since failed campaigns don’t usually recover later.

Accredited Investor 252

Accredited Investor Campaign SEC Equity 252

Startup Professionals Musings

JULY 5, 2023

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. The incubator organization can help you find them or show you how to apply for a government grant. Funding or rollout stage.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

DECEMBER 29, 2017

If you are approaching a recognized venture capital group, or even an accredited angel investor, a non-disclosure agreement is counter-productive. Demanding an NDA too early is a sure way to kill your dream before the people who can help you even know what you have to offer.

Non-disclosure Agreement 153

Non-disclosure Agreement NDA Technical Review Due Diligence 153

Startup Professionals Musings

OCTOBER 16, 2023

External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Yet every business requires revenue and volumes, as certainly as it requires a product to sell.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

Startup Professionals Musings

SEPTEMBER 12, 2014

According to recent National Venture Capital Association statistics , only 20% of venture-backed startups now use this alternative, due to high liability concerns, demanding shareholders, and high costs. IPO – public company initial public stock offering.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Your options for funding just increased, or at least you have a new way to get some real market feedback on the demand for your solution.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Startup Professionals Musings

MARCH 27, 2016

While I recognize that there continues to be a shortage of venture capital for new entrepreneurs, compared to the demand, don’t succumb to the temptation to take funds from investors that you are not totally comfortable with.

Technical Review 120

Technical Review Due Diligence Term Sheet Offshore 120

Startup Professionals Musings

DECEMBER 26, 2020

As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. Crowdfunding to gauge demand is not recommended, since failed campaigns don’t usually recover later.

Accredited Investor 378

Accredited Investor SEC Campaign Equity 378

Startup Professionals Musings

SEPTEMBER 26, 2015

Investors typically demand preferred stock, to give themselves certain voting and liquidation privileges over later shareholders. Venture capital investors normally insist on this option. For later investments, the price is equity, with a percentage of the owner stock to be assigned to the investor.

Term Sheet 120

Term Sheet Demand Preferred Stock Liquidation Preference 120

Startup Professionals Musings

APRIL 17, 2023

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Congratulations!

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

OCTOBER 12, 2020

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. The incubator organization can help you find them, or show you how to apply for a government grant. Funding or rollout stage.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Startup Professionals Musings

AUGUST 6, 2023

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of angel investment groups and venture capital organizations. Your options for funding just increased, or at least you have a new way to get some real market feedback on the demand for your solution. billion to USD 3.62

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Startup Professionals Musings

NOVEMBER 13, 2021

Community means more than supply and demand. With crowdfunding, entrepreneurs and artists no longer need to wait for family money or venture capital. It can mean selling through peer-to-peer e-commerce ( eBay ), renting ( Vrbo ), gifting ( GiftCrowd ), or even swapping ( Swapz ).

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Professionals Musings

FEBRUARY 5, 2021

External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Yet every business requires revenue and volumes, as certainly as it requires a product to sell.

Forecast 369

Forecast Burn Rate Startup Widget 369

Startup Professionals Musings

APRIL 27, 2016

According to recent National Venture Capital Association statistics , only 16% of venture-backed startups now use this alternative, due to high liability concerns, demanding shareholders, and high costs. IPO – public company initial public stock offering.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Startup Professionals Musings

MARCH 13, 2011

They write and tweet every day, with the single guiding credibility and personality that the new social culture demands. Here are a few that I aspire to: Venture Hacks , by Babak Nivi and Naval Ravikant. Mark is a serial entrepreneur who is now active in the venture capital community for early-stage startups.

Curation 230

Curation Technical Review Entrepreneur Cofounder 230

Startup Professionals Musings

JULY 22, 2020

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Congratulations!

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

AUGUST 2, 2014

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Startup Professionals Musings

FEBRUARY 2, 2019

Community means more than supply and demand. With crowdfunding, entrepreneurs and artists no longer need to wait for family money or venture capital. It can mean selling through peer-to-peer e-commerce ( eBay ), renting ( HomeAway ), gifting ( yerdle ), or even swapping ( Swapz ).

Cuba 246

Cuba Venture Capital Community Valuation 246

Startup Professionals Musings

OCTOBER 18, 2013

Yet you can never forget the seasonal business cash flow and activity demands that are approaching, so to be prepared – you need to start the planning now. Venture capital investments are returning to startups. Venture capital firms raised $4.1 Don’t let the demands of seasonal fluctuations spoil the party.

Business Plan 215

Business Plan Venture Capital Forecast Demand 215

Startup Professionals Musings

DECEMBER 28, 2018

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. The incubator organization can help you find them, or show you how to apply for a government grant. Funding or rollout stage.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

Startup Professionals Musings

FEBRUARY 5, 2012

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.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Startup Professionals Musings

MARCH 20, 2013

Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). But sometimes higher prices create higher demand, causing a boom. In startups, a great success like Google causes busts by stimulating more supply, without regard to demand. Cheap money. Policy-driven distortions.

Demand 224

Demand Finance Green Government 224

Startup Professionals Musings

OCTOBER 13, 2010

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.

Investment Bankers 231

Investment Bankers Venture Capital Initial Public Offering Startup 231

Startup Professionals Musings

AUGUST 19, 2018

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Congratulations!

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Startup Professionals Musings

FEBRUARY 28, 2012

His first reality reset is that now, maybe for the first time, he really has a boss, or several bosses, and often very demanding ones at that. Angel and venture capital investors rarely just give you the cash, and stand back to wait for you to spend it the way you want. Personal visits from key investors.

Advisory Board 241

Advisory Board Entrepreneur Venture Capital Angel Investor 241

Startup Professionals Musings

MARCH 25, 2011

Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). But sometimes higher prices create higher demand, causing a boom. In startups, a great success like Google causes busts by stimulating more supply, without regard to demand. Cheap money. Policy-driven distortions.

Startup 225

Startup Demand Green Government 225

Startup Professionals Musings

JUNE 5, 2016

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 120

Angel Investor IRR Valuation Startup 120

Startup Professionals Musings

FEBRUARY 5, 2018

More capital is available for scaling and brand building. With the growth of angel investing in the last decade to venture capital levels, and the more recent crowdfunding to match both combined, there is more capital available for growth than ever before. Today, time is your scarcest resource in a new venture.

IRR 143

IRR Marketing Startup Angel Investor 143

Startup Professionals Musings

MAY 20, 2016

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Your options for funding just increased, or at least you have a new way to get some real market feedback on the demand for your solution.

Angel Groups 136

Angel Groups Accredited Investor Equity Due Diligence 136

Startup Professionals Musings

JUNE 15, 2013

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. The incubator organization can help you find them, or show you how to apply for a government grant. Funding or rollout stage.

Incubator 256

Incubator Entrepreneur Exit Strategy Institutional Investors 256

Startup Professionals Musings

DECEMBER 16, 2015

Boy wearing Oculus Rift via Wikipedia As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. Making something awesome will cost more than you expect.

Accredited Investor 120

Accredited Investor SEC Campaign Equity 120

Startup Professionals Musings

DECEMBER 31, 2010

His first reality reset is that now, maybe for the first time, he really has a boss, or several bosses, and often very demanding ones at that. Angel and venture capital investors rarely just give you the cash, and stand back to wait for you to spend it the way you want. Personal visits from key investors.

Advisory Board 231

Advisory Board Entrepreneur Venture Capital Angel Investor 231