Remove Dilution Remove Equity Remove Government Remove Product Development
article thumbnail

Government Grants Cost No Equity, But are Not Free

Startup Professionals Musings

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk.

article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We have a special program if you are pre-seed and need product development.

Revenue 60
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Government Grants are Not as Free as You Think

Startup Professionals Musings

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk.

article thumbnail

Don’t Forget Grants If You Need Early Seed Money

Startup Professionals Musings

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk.

article thumbnail

Don’t Forget Grants If You Need Early Seed Money

Gust

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk.

article thumbnail

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

Not surprisingly, the list above also is ranked from least to most equity stake in an investment for the investor, relative to the cash they invest. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e., equity that belongs to departed cofounders)? The cliffs?

article thumbnail

Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

what are the most crucial steps to be taken by a new tech startup when outsourcing major part of the tech to IT firms or outsourcing “product development” eg new social media website project? Near shoring development with your team (ex: your team is based in Canada / India) is cool, but not outsourcing. 1) Hire A’s.