Startup Professionals Musings

APRIL 12, 2021

Actively seek out government and local incentives. Especially in these times of pandemics and economic initiatives, SCORE and other government agencies are likely to help you if you plan ahead. Similarly, a custom contract for a big customer can get you over a growth gap, without diluting your brand in the market.

Dilution 404

Dilution Incubator Bootstrapping Government 404

Startup Professionals Musings

JULY 24, 2022

Overcoming execution obstacles is combating dilution, not compromising, for these innovators. That’s why most large business and government entities are resigned to buying innovation, rather than birthing it. They seek smart people, who openly express their doubts, and then collaborate to overcome them.

Marketing 313

Marketing Dilution Social Network Government 313

Startup Professionals Musings

NOVEMBER 8, 2021

Non-equity funding has to come from personal sources, or government grants, or bank loans. Of course, that doesn’t dilute the owner’s equity, but it may well limit you to organic growth, versus international rollouts and acquisition options. Startup funding comes from personal savings and family. There is no free lunch for money.

Entrepreneur 371

Entrepreneur Equity Dilution LLC 371

Startup Professionals Musings

DECEMBER 11, 2022

Nice-to have” and “easier-to-use” products, or social ventures needing government support, are not likely to provide a financial return to investors. Founder insistence on non-dilute clauses, arms-length relationships, and quick closure without due diligence will short-circuit active interest.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Agile VC

MAY 9, 2014

One of the first things that caught my eye when I started reading the Alibaba Group S-1 was a section on page 7 of the filing regarding something called the “Alibaba Partnership” It quickly struck me that the Alibaba Group’s corporate governance in some ways mirrors China’s Politburo.

Government 153

Government Silicon Valley China Cofounder 153

Both Sides of the Table

FEBRUARY 19, 2019

While the management of a startup company deals with the day-to-day decision-making within the company (strategy, budgets, goals, tasks, compensation) ultimately the Board of Directors has the legal governing responsibilities for these things. This is often called “corporate governance”?—?in in case you’ve never heard that term.

Startup 204

Startup Dilution Government Stock Options 204

Startup Professionals Musings

JANUARY 2, 2011

To the investors, it means less dilution and lower overall risk. It’s time for you to meet state and local government officials, make them aware of what you are doing, and get them excited and working for you. Research related tax credits and incentives. Extend your networking.

Government 221

Government SBIR Dilution Database 221

ithacaVC

SEPTEMBER 25, 2018

I am always very cautious when it comes to government grants and government supported competitions. Apart from SBIR/STIR grants (which often literally are used to start companies based on university research), my general view is that startups should NOT overly rely on the government for anything. Congrats to EkoStinger!

Government 40

Government SBIR Dilution Portfolio 40

ReadWriteStart

JANUARY 13, 2024

Consequently, businesses and governments increasingly rely on these startups to protect their digital assets and ensure the security of sensitive data from potential breaches. Additionally, these down rounds can decrease employee morale, as they may dilute shares or pay cuts, affecting the overall work environment.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

The Startup Magazine

JANUARY 12, 2024

The Brand Identity Balancing Act While chasing growth, there’s a risk of diluting what made your brand special in the first place. Sometimes, bringing in experts, like a security clearance attorney , can help navigate the legal issues around government bid responses. Staying true to your core values and brand identity is vital.

Intellectual Property 118

Intellectual Property Dilution Security Government 118

Startup Professionals Musings

SEPTEMBER 5, 2015

Now we have online information overload, more government regulations and easy worldwide access to alternatives. A team is often seen as a burden to an inventor, and may potentially dilute or steal ownership. Knows how to build and lead a team. Entrepreneurs know they need a team with many skills and enjoy the leadership role.

Entrepreneur 120

Entrepreneur Dilution Partner Distribution 120

Berkonomics

FEBRUARY 8, 2024

But this time, we concentrate upon governance changes. Let’s talk about the reality of taking money from professional investors. It is not the first time we’ve covered this general subject nor the last. A seat on your board?

Cost 62

Cost Covenant Angel Groups Angel Investor 62

Startup Professionals Musings

MARCH 14, 2020

Nice-to have” and “easier-to-use” products, or social ventures needing government support, are not likely to provide a financial return to investors. Founder insistence on non-dilute clauses, arms-length relationships, and quick closure without due diligence will short-circuit active interest.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Gust

MAY 24, 2012

By contrast, venture capital and angel investments normally take the form of Preferred Stock with rights and preferences set forth in the company’s Certificate of Incorporation and other governance documents. As a matter of symbolism, it smacks of outright contempt for financial investors.

IPO 159

IPO Equity Common Stock Stock 159

ReadWriteStart

JUNE 1, 2020

Government programs. You should also research the government programs like subsidies, funding, and grants that are available for your business sector and ensure you understand the parameters to qualify for these. ? Raising higher capital at an early stage means more equity to be diluted to the investors. Capital is expensive.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

SEPTEMBER 10, 2021

And there is so much money around being thrown at so many entrepreneurs that many firms don’t even care about board seats, governance rights or heaven forbid doing work with the company because that would eat into the VCs time needed to chase 5 more deals. A seed round these days is $3–5 million or more! So in a way it’s self selecting.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

YoungUpstarts

MAY 6, 2019

There is a complete process that governs the startup lifecycle including inception to exit. If you are getting funded for the first time, which means that you have not diluted the shares of your company, you will be receiving Series A funding. by Arsalan Sajid, startup community manager at Cloudways. And, you must have wondered, ‘Man!

Startup 113

Startup Technical Cofounder Merger Early Stage 113

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. The “Seed Round” is critical because it’s in this round that you establish your board and corporate governance. I speak from experience.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

David Teten

AUGUST 19, 2019

Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. Like other RBI firms, Decathlon does not require warrants, governance involvement, or the types of financial covenants that are often associated with other venture debt type solutions. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

MAY 19, 2014

Since government grants are funded by tax dollars for specific industries and research, usage of grant funds is carefully monitored. For example, federal and state governments don’t provide grants for starting a business, paying off debts, or covering operational expenses. Stringent spending controls. Extend your networking.

Seed Money 242

Seed Money SBIR Dilution Government 242

Startup Professionals Musings

JANUARY 26, 2019

Non-equity funding has to come from personal sources, or government grants, or bank loans. Of course, that doesn’t dilute the owner’s equity, but it may well limit you to organic growth, versus international rollouts and acquisition options. Startup funding comes from personal savings and family. There is no free lunch for money.

Startup 194

Startup Equity Dilution LLC 194

Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens? Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens? Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Version One Ventures

SEPTEMBER 12, 2017

Then, if you win the deal, you have major influence on the development of the start-up through negotiated governance mechanisms like board seats, information rights, anti-dilution rights, etc. But you also have almost no influence on the project in terms of governance.

Venture Capital 164

Venture Capital LP Dilution Limited Partner 164

Pascal's View

OCTOBER 11, 2013

While you can package optimism in many different wrappers, in my view it is essential, especially for unsophisticated accredited investors, to understand critical concepts such as equity dilution from follow on rounds. Adult Education Corporate Governance Entrepreneur Venture Capital Web/Tech'

New York 31

New York Technical Review Angel Investor Finance 31

Startup Professionals Musings

OCTOBER 19, 2019

Overcoming execution obstacles is combating dilution, not compromising, for these innovators. That’s why most large business and government entities are resigned to buying innovation, rather than birthing it. They seek smart people, who openly express their doubts, and then collaborate to overcome them.

Dilution 137

Dilution Social Network Government Restful 137

Berkonomics

JULY 16, 2020

If the equity value of a company is growing at the same rate as the company, say 40% per year, almost any form of debt financing may be preferable as a way of preventing further dilution from issuing additional equity. Back to loans costing less than dilution of equity. The banks need to be convinced.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62

Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Increasing government regulations. Consider the recent example of Facebook and Mark Zuckerberg.

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

The Next Web

SEPTEMBER 13, 2013

Singapore is by far the most developed behind those big three markets with government schemes attracting over a dozen early stage firms to set up shop here (e.g. the large government-linked corporations setting up their own venture arms (e.g. Finding the right partner is a much bigger win than the extra cash or minimizing dilution.

Asia 132

Asia Silicon Valley India Term Sheet 132

Startup Professionals Musings

SEPTEMBER 30, 2012

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Increasing government regulations. Consider the recent example of Facebook and Mark Zuckerberg.

Exit Strategy 239

Exit Strategy IPO Investment Bankers Entrepreneur 239

Occam's Razor

MAY 2, 2017

The very best analysts distill, rather than dilute. Government: California Department of Motor Vehicles. I love governments! A much more detailed collection of recommendations I’d written for the Government of Belgium a little while back. Web Analytics Success Measurement For Government Websites.

Metrics 141

Metrics Acquisition eCommerce Analytics 141

Startup Professionals Musings

MAY 18, 2015

Make sure the government waits for a stock sale to collect taxes. This is called stock dilution control. This allows the entrepreneur more influence in controlling dilution of his or her shares, investment terms and acquisition decisions. At that time the original split makes all the difference. In the U.S.,

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Berkonomics

DECEMBER 21, 2017

But this time, we concentrate upon governance changes. Let’s talk about the reality of taking money from professional investors. It is not the first time we’ve covered this general subject nor the last.

Covenant 97

Covenant Cost Angel Groups Angel Investor 97

Gust

MAY 11, 2014

Since government grants are funded by tax dollars for specific industries and research, usage of grant funds is carefully monitored. For example, federal and state governments don’t provide grants for starting a business, paying off debts, or covering operational expenses. Stringent spending controls. Extend your networking.

Seed Money 164

Seed Money SBIR Dilution Government 164

Startup Professionals Musings

FEBRUARY 28, 2014

Overcoming execution obstacles is combating dilution, not compromising, for these innovators. That’s why most large business and government entities are resigned to buying innovation, rather than birthing it. They seek smart people, who openly express their doubts, and then collaborate to overcome them.

Dilution 264

Dilution Social Network Government Restful 264

Startup Company Lawyer

MARCH 14, 2010

If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), Anti-dilution protection. Deleting anti-dilution rights saves several pages of text in the Certificate of Incorporation. Future rights. Right of first offer on future financings.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Startup Professionals Musings

NOVEMBER 10, 2017

Overcoming execution obstacles is combating dilution, not compromising, for these innovators. That’s why most large business and government entities are resigned to buying innovation, rather than birthing it. They seek smart people, who openly express their doubts, and then collaborate to overcome them.

Dilution 132

Dilution Social Network Government Restful 132