Startup Professionals Musings

OCTOBER 16, 2022

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage angel investors.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

MAY 1, 2011

The good news is that he is all about helping early-stage startups, the hard part for entrepreneurs is figuring out what it takes to play. Early-stage startup. Every startup is early-stage to someone. For VCs, early-stage means customer revenue is less than $10M.

Early Stage 231

Early Stage Seed Stage Angel Investor Silicon Valley 231

Startup Professionals Musings

DECEMBER 6, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Solicit funds from friends and family.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

OCTOBER 14, 2022

For early-stage startups, the goodwill component can easily exceed the size of all the financial elements together, or can just as easily mark a company with good financials as not investable. In the investment community, these leadership elements are often called “goodwill.”

Technical Review 323

Technical Review Due Diligence Valuation Leadership 323

Startup Professionals Musings

MARCH 22, 2021

Budget relatively small “educational investments” at early stages, to learn from a target firm without a full commitment, or without leading either partner astray. Here is also an ideal opportunity to use your external advisors and Board to help identify external resources, potential partnerships, and acquisition opportunities.

CTO Hire 330

CTO Hire Fractional CTO Merger Non-Compete 330

Startup Professionals Musings

MAY 1, 2023

Because these considerations can be quite complex, very emotional, and have long-term implications, smart entrepreneurs don’t hesitate to get some legal advice at this early stage, in drawing up an agreement document to be signed by each of the cofounders.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

Startup Professionals Musings

JANUARY 30, 2022

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Everyone in the business world has heard of the classic bestseller by Geoffrey A.

Technical Review 375

Technical Review Startup Dilution Early Stage 375

Startup Professionals Musings

OCTOBER 15, 2022

Since your product or technology may still be in the early stages of development, the investor in actually investing in you, and your previous achievements, as much as your current startup.

Intellectual Property 278

Intellectual Property Angel Investor Early Stage Venture Capital 278

Startup Professionals Musings

AUGUST 9, 2020

Because these considerations can be quite complex, very emotional, and have long-term implications, smart entrepreneurs don’t hesitate to get some legal advice at this early stage, in drawing up an agreement document to be signed by each of the co-founders.

Cofounder 435

Cofounder Technical Cofounder Equity Intellectual Property 435

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Set expectations accordingly. Solicit funds from friends and family.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

Startup Professionals Musings

DECEMBER 30, 2020

Planning for the future must be a regular activity, not just an early-stage or once-a-year event. Strategic planning is a required ongoing investment. If you wait for a growth crisis to kick off your next step, it’s probably too late. Change happens every day, and it takes time and effort to prepare you for the next step.

Intellectual Property 432

Intellectual Property Entrepreneur Technical Review Angel Investor 432

Startup Professionals Musings

MAY 22, 2020

Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. These terms quantify how fast money is being spent, and how long the business can survive before another round of investments is required. Think twice before you jump in.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

Startup Professionals Musings

FEBRUARY 18, 2023

Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. These terms quantify how fast money is being spent, and how long the business can survive before another round of investments is required. Think twice before you jump in.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

JANUARY 18, 2020

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage angel investors.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

JANUARY 15, 2020

For early-stage startups, the goodwill component can easily exceed the size of all the financial elements together, or can just as easily mark a company with good financials as not investable. In the investment community, these leadership elements are often called “goodwill.”

Valuation 311

Valuation Technical Review Due Diligence Leadership 311

Startup Professionals Musings

MARCH 10, 2021

Don’t waste time talking to VCs for requests less than $1M, or very early stage, and don’t expect professional investors to jump in if you have no “skin in the game.” It is not helpful to you for funders to love an idea that does not fit the criteria for their investing capability. Not doing due diligence on the funding source.

Software Review 307

Software Review Due Diligence Elevator Pitch Early Stage 307

Startup Professionals Musings

JANUARY 13, 2020

Since your product or technology may still be in the early stages of development, the investor in actually investing in you, and your previous achievements, as much as your current startup.

Intellectual Property 316

Intellectual Property Angel Investor Early Stage Venture Capital 316

Startup Professionals Musings

JANUARY 20, 2020

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors was only legalized via the SEC in 2016, so its impact is still in the early stages. The primary challenge seems to be that the crowdfunding term is used to encompass so many different concepts that everyone is confused.

Accredited Investor 324

Accredited Investor Entrepreneur SEC Equity 324

Startup Professionals Musings

JULY 16, 2023

None normally work for or provide funds for early-stage startups. Then I learned that these banks really negotiate investments and collect fees on the transactions, sort of like commercial banks do with loans to businesses. Many investment banks even call themselves “boutiques.”

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Set expectations accordingly. Solicit funds from friends and family.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

JUNE 26, 2013

Every early-stage startup should explore this new funding alternative. New “up-and-comer” VCs focus on early-stage companies. VCs are finding that they don’t need the “large” funds of $100M to $500M to support a portfolio, if they focus on early-stage startups.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Set expectations accordingly. Solicit funds from friends and family.

Product Development 177

Product Development Cost Developer Product 177

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Set expectations accordingly. Solicit funds from friends and family.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

MARCH 13, 2021

Investors often say that successfully navigating the early stages of a startup requires lots of street smarts, guts, and luck. Trusting your gut at this stage isn’t good enough. During the early stages, you are the company, processes are not documented, you don’t have much help, so you need a fanatical attention to detail.

Entrepreneur 422

Entrepreneur Early Stage Founder Revenue 422

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Solicit funds from friends and family.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Startup Professionals Musings

OCTOBER 13, 2014

In reality, very few executives or professional stars from large corporations survive in the early-stage startup environment. This attitude sows division and mistrust at exactly the early stages when the business most needs to build precious esprit de corps. Never cover your a$$.

Startup 258

Startup Early Stage Technical Review .Net 258

Startup Professionals Musings

APRIL 27, 2019

In fact, it’s all about the “focus” required to get early stage technology products across the deadly chasm from early adopters to mainstream customers. Image via Picpedia Everyone in the business world has heard of the old bestseller by Geoffrey A.

Technical Review 255

Technical Review Dilution Early Stage Product Development 255

Startup Professionals Musings

OCTOBER 2, 2023

If you need funding for these early stage activities, I have some suggestions on better strategies to follow. In this context, there are at least six stages often included in the scope of R&D to narrow your focus: Search for new technologies.

Angel Investor 256

Angel Investor Early Stage Incubator Government 256

Startup Professionals Musings

MAY 29, 2021

Early-stage funding. Don’t look for formal venture capital levels of funding, but certainly early-stage Kaufmann grants, incubators, and entrepreneurship incentives are available from endowments and state funds.

Arizona 432

Arizona Phoenix Intellectual Property Incubator 432

Startup Professionals Musings

SEPTEMBER 10, 2018

Because these considerations can be quite complex, very emotional, and have long-term implications, smart entrepreneurs don’t hesitate to get some legal advice at this early stage, in drawing up an agreement document to be signed by each of the co-founders.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

APRIL 17, 2023

You are now entering the rollout stage , with money required for marketing, hiring a full-time team, and a production process. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity. Congratulations!

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

JANUARY 23, 2013

In reality, very few executives or professional stars from large corporations survive in the early-stage startup environment. This attitude sows division and mistrust at exactly the early stages when the business most needs to build precious esprit de corps. Never cover your a$$.

Early Stage 264

Early Stage Entrepreneur Technical Review .Net 264

Startup Professionals Musings

OCTOBER 23, 2021

Relevancy for an early-stage company is the discovery and understanding of the real addressable market for a product or service. Too many early-stage companies are so desperate for customers that they operate in a frantic and random sales mode. The right partnership strategy can make a company relevant.

Early Stage 379

Early Stage Vertical Sales Global 379

Startup Professionals Musings

SEPTEMBER 9, 2010

Every early-stage startup should explore this new funding alternative. New “up-and-comer” VCs focus on early-stage companies. VCs are finding that they don’t need the “large” funds of $100M to $500M to support a portfolio, if they focus on early-stage startups.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Startup Professionals Musings

MARCH 11, 2016

Angel investors are still the lifeblood of early-stage startups, despite the surge of activity in crowdfunding and an increasing early interest from venture capitalists. According to the Angel Capital Association , at least 300,000 people have made angel investments in the last two years, totaling $24 billion in the U.S.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Solicit funds from friends and family.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

Startup Professionals Musings

SEPTEMBER 4, 2022

As an entrepreneur, you need to start early to implement the discipline and business practices that will lead to success. Even though everyone has an opinion on good early stage practices, I was impressed with the actionable blueprint in the classic book by Scott Duffy, “ Launch!

Early Stage 307

Early Stage Bootstrapping Revenue Framework 307