Startup Professionals Musings

SEPTEMBER 20, 2017

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. A nonprofit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. There is no discussion of equity, or return on investment.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

Startup Professionals Musings

FEBRUARY 15, 2015

Angel investors and venture capitalists don’t make equity investments in non-profits. A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. There is no discussion of equity, or return on investment.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Startup Professionals Musings

SEPTEMBER 15, 2012

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? Individual and institutional donations.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

JULY 3, 2011

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? Individual and institutional donations.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

OCTOBER 20, 2023

These advisors need a stake in your success, like a monthly stipend, or an equity share of the business. Before you spend big money on inventory and scale over a wide area, make sure you have finalized your marketing, manufacturing, and distribution resources. This is not a place for friends and family.

Marketing 290

Marketing Leadership Differentiation Equity 290

Startup Professionals Musings

JANUARY 17, 2015

That might start with the CEO giving the investor pitch to the whole organization, and distributing the current business plan document to everyone. Sales and distribution channel activity will be analyzed, as well as cost of customer acquisition, to make an independent assessment of your financial projections.

Technical Review 120

Technical Review Due Diligence Startup Term Sheet 120

Startup Professionals Musings

APRIL 30, 2023

Most equity investors tend to avoid truly disruptive technology startups, since they take longer and more money to scale. Innovations are often as simple as better delivery, more customization, or better distribution. Attract investors who fear pioneers catching arrows. Martin Zwilling

Social Media 230

Social Media Business Model Equity Distribution 230

Startup Professionals Musings

SEPTEMBER 30, 2013

It doesn’t prove your business model of pricing, distribution, and support. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. Real customers give you real feedback, rather than just tell you what you want to hear. Show personal investment.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

Startup Professionals Musings

AUGUST 8, 2020

Most equity investors tend to avoid truly disruptive technology startups, since they take longer and more money to scale. Innovations are often as simple as better delivery, more customization, or better distribution. Attract investors who fear pioneers catching arrows. Martin Zwilling.

Startup 393

Startup Social Media Business Model Equity 393

Startup Professionals Musings

DECEMBER 1, 2021

Make sure your hiring practices include diversity, inclusion, and equity. For example, Daymond John , owner of FUBU and known for his appearances on Shark Tank, found that good manufacturing and distribution partnerships were required to scale his clothing lines, despite the fact that many of these early-on were his competitors.

Agile 321

Agile Differentiation Lead Generation Social Media 321

Startup Professionals Musings

AUGUST 31, 2012

It doesn’t prove your business model of pricing, distribution, and support. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. Real customers give you real feedback, rather than just tell you what you want to hear. Show personal investment.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

JUNE 6, 2010

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? Individual and institutional donations.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

Startup Professionals Musings

JUNE 17, 2011

It doesn’t prove your business model of pricing, distribution, and support. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. Real customers give you real feedback, rather than just tell you what you want to hear. Show personal investment.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

JUNE 8, 2019

The problem is that you may not have the experience or connections to jump into new customer segments, manufacturing, and distribution. Build your brand equity and relationships with customers. These days, brand equity means relationships with more customers, and a more memorable overall experience.

Angel Investor 220

Angel Investor Equity Leadership Demand 220

Startup Professionals Musings

MAY 22, 2010

It doesn’t prove your business model of pricing, distribution, and support. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. Real customers give you real feedback, rather than just tell you what you want to hear. Show personal investment.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Startup Professionals Musings

NOVEMBER 10, 2014

Professionals maintain that there is plenty of money and equity for qualified startups, and funding marginal startups via any source will only make more people unhappy. But safely seeking equity investments from the crowd via the Jobs Act of 2012 is problematic and has still not been defined.

Non-disclosure Agreement 254

Non-disclosure Agreement Intellectual Property Accredited Investor Equity 254

Startup Professionals Musings

MARCH 17, 2013

Professionals maintain that there is plenty of money for equity in qualified startups, and funding marginal startups via any source will only make more people unhappy. But safely seeking equity investments from the crowd via the Jobs Act of 2012 is problematic and has still not been defined.

Non-disclosure Agreement 266

Non-disclosure Agreement Intellectual Property Accredited Investor Equity 266

Startup Professionals Musings

JULY 27, 2018

I would expect to see specific plans for distribution, partnerships, and sales channels, as well as the use of social media and conventional marketing, with budgets for the major elements. Specific investment size request, and equity offered. Customized marketing strategy and realistic sales plans. “If

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Startup Professionals Musings

SEPTEMBER 3, 2018

Most equity investors tend to avoid truly disruptive technology startups, since they take longer and more money to scale. Innovations are often as simple as better delivery, more customization, or better distribution. Attract investors who fear pioneers catching arrows. Martin Zwilling.

Startup 162

Startup Social Media Business Model Equity 162

Startup Professionals Musings

JULY 30, 2014

Most equity investors tend to avoid truly disruptive technology startups, since they take longer and more money to scale. Innovations are often as simple as better delivery, more customization or better distribution. Attract investors who fear pioneers catching arrows. Imitation with continuous innovation predictably drives progress.

Technology 259

Technology Entrepreneur Business Model Social Media 259

Startup Professionals Musings

DECEMBER 21, 2013

These relationships need not require cash investments; often they are done with exchanges of equity or assets. Economies of scale also apply to marketing, distribution, and sales. Economies of scale. New management skills. New business relationships mean new perspectives and new executives working on the opportunity.

Merger 243

Merger Acquisition Startup Bandwidth 243

Startup Professionals Musings

DECEMBER 22, 2017

This meeting should include the CEO giving the investor pitch to the whole organization, and distributing the current business plan document to everyone. Startup equity investments imply a long-term business relationship, lasting five years or longer.

Due Diligence 148

Due Diligence Bankruptcy Angel Investor Stock 148

Startup Professionals Musings

NOVEMBER 17, 2012

These relationships need not require cash investments; often they are done with exchanges of equity or assets. Economies of scale also apply to marketing, distribution, and sales. Economies of scale. New management skills. New business relationships mean new perspectives and new executives working on the opportunity.

Entrepreneur 249

Entrepreneur Merger Bandwidth Acquisition 249

Startup Professionals Musings

AUGUST 21, 2016

Most equity investors tend to avoid truly disruptive technology startups, since they take longer and more money to scale. Innovations are often as simple as better delivery, more customization, or better distribution. Attract investors who fear pioneers catching arrows. Martin Zwilling.

Technology 120

Technology Startup Business Model Social Media 120

Startup Professionals Musings

SEPTEMBER 15, 2011

These relationships need not require cash investments; often they are done with exchanges of equity or assets. Economies of scale also apply to marketing, distribution, and sales. Economies of scale. New management skills. New business relationships mean new perspectives and new executives working on the opportunity.

Startup 232

Startup Merger Bandwidth Acquisition 232

Startup Professionals Musings

MAY 29, 2015

These relationships need not require cash investments; often they are done with exchanges of equity or assets. Economies of scale also apply to marketing, distribution, and sales. Economies of scale. New management skills. New business relationships mean new perspectives and new executives working on the opportunity.

Merger 120

Merger Acquisition Differentiation Channel 120

Startup Professionals Musings

AUGUST 7, 2015

Partnerships, distribution channels and pricing models should be included. “If No investor pitch should end without asking for a specific amount of money, providing some details on how that money will be used and what equity in the company you are offering in return. Specific elements of your marketing and sales plans.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

JULY 26, 2010

These relationships need not require cash investments; often they are done with exchanges of equity or assets. Economies of scale also apply to marketing, distribution, and sales. Economies of scale. New management skills. New business relationships mean new perspectives and new executives working on the opportunity.

Acquisition 214

Acquisition Merger Startup Bandwidth 214

Startup Professionals Musings

APRIL 26, 2021

Trying to distribute initially through wholesale and retail, as well as online, is very risky from an investor perspective. You need to specify what investment amount you need, how you intend to use it, and what percent of your equity you are willing to give up to get it. Patents are a good place for you to start.

Intellectual Property 332

Intellectual Property Angel Investor Business Model Channel 332

Startup Professionals Musings

NOVEMBER 8, 2010

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). Building a product doesn’t get it distributed and sold.

Equity 228

Equity Intellectual Property Cofounder CTO Hire 228

Startup Professionals Musings

APRIL 23, 2012

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). Building a product doesn’t get it distributed and sold.

Intellectual Property 252

Intellectual Property Equity Cofounder CTO Hire 252