Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Startup Professionals Musings

AUGUST 24, 2016

You need to find the skills or experience you don’t have in business, technology, or money. Experience and connections in your business area. Every previous experience filing and winning a patent is a rare and valuable asset. Keep your wits about you to make sure that dilution is done equitably and evenly.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

Startup Professionals Musings

APRIL 23, 2012

A startup is all about "execution" - meaning the equity should be allocated based on the value that each partner brings to the table in each of these dominant variables: Experience running a startup business. Successful Fortune 500 executives need not apply, since most would have experience with any of these tasks.

Intellectual Property 252

Intellectual Property Equity Cofounder CTO Hire 252

David Teten

DECEMBER 2, 2019

I’m now researching non-dilutive funding for Action Tank , a startup I’m gestating to “Make America Functional Again”. I worked with outsourced research firm Wonder * to identify all of the institutions we could who support tech impact startups with cash and community, and in many cases without dilution. SEIF Awards Tech for Impact.

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60

This is going to be BIG.

JANUARY 18, 2024

Governance Moreso than a lot of actual VCs, a lot of high-net-worth folks tend to ask for board representation—even in the super early stages of a company where boards tend to be a little less formal. If your early customers aren’t blown away by the experience, you’re never going to become a huge company.

.Net 88

.Net Cap Table Startup Technical Review 88

ReadWriteStart

JUNE 1, 2020

These usually play a role in the very early stage of your business, primarily pre-revenue. The seed stage is focused on building the core team, product optimization, exploring avenues for monetization. ? Early-stage. An early-stage investor usually looks at a return of 10 to 15 times.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

NOVEMBER 8, 2010

A startup is all about "execution" - meaning the equity should be allocated based on the value that each partner brings to the table in each of these dominant variables: Experience running a startup business. Successful Fortune 500 executives need not apply, since most would have experience with any of these tasks.

Equity 228

Equity Intellectual Property Cofounder CTO Hire 228

David Teten

JANUARY 21, 2021

VI: Revenue-based financing: The next step for private equity and early-stage investment. Jonathan Bragdon , CEO, describes Capacity as “a team of founders-turned-funders making non-dilutive, founder-aligned investments of $50-$300k in post-startup, post-revenue businesses planning to 2X revenues in 12-24 months.

Equity 78

Equity Revenue Cofounder Colorado 78

Startup Professionals Musings

DECEMBER 11, 2022

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Startup Professionals Musings

MARCH 12, 2023

Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds. These are people who believe in you personally, without evidence of previous startup experience, no current traction, and lack of valuation.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Business Plan Blog

OCTOBER 4, 2013

This is true for early stage funding as well as venture capital funding. Never confuse the number of years worked with experience. Credibility is based on accomplishments and relevant experience. Having too many co-founders will only lead to your eventual dilution. Early Stage. Seed to Series A.

Part-Time VPE 79

Part-Time VPE Fractional VPE Cofounder CTO Hire 79

Both Sides of the Table

NOVEMBER 14, 2017

As an early-stage VC I love this phase. Sam began drawing out plans for a new way to provide storage after he had horrific experiences with traditional storage after the storm. As a startup in this phase you often raise capital, get press, hire staff and everything feels possible.

Operations 286

Operations New York City Technical Review Startup 286

Startup Professionals Musings

APRIL 12, 2021

In my experience as a business advisor and occasional investor, many of you won’t make it that far, succumbing to the high costs of getting those first customers, funding an initial inventory, and building an operational support process. Negotiate a line-of-credit with a financial institution.

Dilution 404

Dilution Incubator Bootstrapping Government 404

Startup Professionals Musings

MARCH 14, 2020

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

JUNE 13, 2020

Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds. These are people who believe in you personally, without evidence of previous startup experience, no current traction, and lack of valuation.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

View from Seed

SEPTEMBER 9, 2014

For most of my career, I’ve served startups and early-stage companies as an operating executive or advisor. So when founders lose focus, they dilute their power and effectiveness, which diffuses the force of their impact. When should founders hire one? Based on what criteria? Personality Fit and Working Style.

Hiring 336

Hiring Cofounder Startup Technical Cofounder 336

David Teten

JANUARY 19, 2021

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. Collections risk.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

This is going to be BIG.

NOVEMBER 28, 2021

In fact, it’s why many startup folks leave the early stage world to go over to the big company side—because the benefits tend to be much better. Take a little more dilution, raise a little more money, and spend on the most ignored personal goal in the market.

Hiring 179

Hiring Early Stage Marketing Term Sheet 179

Agile VC

JULY 11, 2012

Here’s a slightly perverse scenario… Acme Ventures starts out as an early-stage VC investing in US-based IT companies. But usually what makes a VC partnership great in its early days doesn’t easily translate into other new strategies down the road. they generate $400M in proceeds from that $100M).

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

Berkonomics

FEBRUARY 23, 2023

So, the question: load up with more equity and dilution? For young companies, often the question is whether to suffer a new round of dilution to stimulate growth, or to sell earlier and not share the (presumably) increased proceeds with additional investors. Or sell now? What about those unicorns? The post Sell at the top?

Dilution 62

Dilution Valuation Early Stage Equity 62

JANUARY 9, 2014

I recently developed a more human framework for early-stage startups to define their startup DNA and lay some foundations for a sustainable business. By trying to appeal to everyone and adding features left, right and centre, you will actually dilute your message and could end up with a complex, bloated product.

Early Stage 102

Early Stage Startup Cofounder Design 102

Both Sides of the Table

JUNE 5, 2011

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. Over time some “norms&# have emerged in pricing based on investors risk / return profile.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Austin Startup

FEBRUARY 13, 2019

Either way, if you know you’re going to fail, it’s much better to do so with your own money on the line than money that also costs you in dilution, perpetuity or more. I speak from experience. While the money was important, the time and advice we received at this early stage was just as, if not more, crucial.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

YoungUpstarts

MAY 31, 2016

While it’s fair to say that the aforementioned cornerstones apply to more established companies and are intended to ensure for their continued well-being, early stage entrants can benefit from their guidance as well. Hire smart, ambitious, get-it-done employees and lead them with emotionally intelligent innovation leadership skills.

Technical Review 100

Technical Review Leadership Early Stage Initial Public Offering 100

The Next Web

SEPTEMBER 13, 2013

But the problem with this is that most VCs in the Valley, especially early stage ones, only like to invest in companies that are within driving distance from their offices. The rest of Asia is still developing with far more angel and early-stage investors than mid-to-later stage folks.

Asia 132

Asia Silicon Valley India Term Sheet 132

Both Sides of the Table

JULY 25, 2010

Rincon is part of the new breed of Seed Stage VCs and with the leadership of Jim Andelman has charted out the most authentic early-stage investment strategy in Southern California. Any SoCal entrepreneur raising early-stage money should put Rincon on their short list. But Cialdini knew they could do better.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Seeing Both Sides

AUGUST 28, 2017

Most of those companies will still require seed capital to assemble their team and fund a year or two of initial development and experiments. Early stage entrepreneurs will also still likely value experienced advice on company-building from seasoned venture capitalists. Shift of value from equity holders to token holders.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

Most of those companies will still require seed capital to assemble their team and fund a year or two of initial development and experiments. Early stage entrepreneurs will also still likely value experienced advice on company-building from seasoned venture capitalists. Shift of value from equity holders to token holders.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Startup Company Lawyer

MARCH 14, 2010

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. In my experience, if a company is raising, say $1.0 Anti-dilution protection. Future rights. Right of first offer on future financings.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

David Teten

AUGUST 19, 2019

Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. Additionally, portfolio companies are able to access competitive and often non-dilutive financing by monetizing an unavoidable expense that is being paid to its current processors, thus yielding a mutual benefit for both parties. over next 12 months.

Revenue 60

Revenue Technical Review Software Review Equity 60

ReadWriteStart

OCTOBER 28, 2010

Or, you could try to come up with some formula that uses a bunch of different factors such as experience, market value, contribution to date, and expected contributions in the future. Common areas to address are decisions around capitalization, executive hiring and firing, share issuance (dilution), and acquisitions. Is it debt?

Cofounder 128

Cofounder Founder Equity Dilution 128

Mucker Lab

SEPTEMBER 7, 2023

The webinar delved into the crucial topic of company culture for early-stage startups. This entails oversimplifying culture by confining it to tangible elements, such as perks and narratives, potentially diluting its essence. The recap of the webinar is listed below with the full webinar recording.

Early Stage 78

Early Stage Seed Stage Leadership Founder 78

thebarefootvc

MAY 8, 2012

However, this needs to be balanced with experience to navigate the obstacles that may arise, as well as introductions that can help scale the business faster. So as an investor, I find myself passing on opportunities at the early stage that I know could become strong businesses, simply due to bandwidth constraints.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

Both Sides of the Table

OCTOBER 17, 2009

Many VCs who do lots of seed stage deals are very supportive and active. They do many early-stage deals. I haven’t met a single founder has hasn’t raved about their experience working with Jon Callaghan, Phil Black or Tony Conrad. Look at Josh Kopelman over at First Round Capital. They have a large-ish fund.

Software Review 283

Software Review Term Sheet Due Diligence Southern California 283

Hunter Walker

JUNE 9, 2021

Ok, the headline is announcing Screendoor , a $50m+ collaboration of some like-minded early stage investors to back new VCs from underrepresented groups (basically people who don’t look like me). Well, I couldn’t be more excited to do just this. The 10 initial Screendoor Venture Advisors.

Columbus 134

Columbus Institutional Investors Dilution Early Stage 134

Startup Professionals Musings

AUGUST 2, 2014

Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds. These are people who believe in you personally, without evidence of previous startup experience, no current traction, and lack of valuation.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Both Sides of the Table

APRIL 27, 2014

Seed investors are aplenty and of course they need downstream money to fuel their early-stage bets. If we got an offer to raise $25 million to grow would she take it or be too worried about exit price, dilution, valuation expectations, etc. And we live in public so many people are able just to reach out.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374