Business Plan Blog

DECEMBER 12, 2013

It is a high net-worth individual who invests his or her own money directly into promising startup businesses in return for mostly equity share of the company. angel investors invested $19 billion in 55,000 deals in 2008, with most of the investments being made in start-up or very early-stage companies. What is an angel group?

Angel Groups 40

Angel Groups Angel Investor Software Review Accredited Investor 40

Haystack

AUGUST 18, 2019

.” 2/ Lateral Competition – The number of “seed” funds has also grown during this boon. More and more seed capital has flooded into the market, making the situation for funding seed rounds ~$2M-ish total size more competitive. Samir Kaji from First Republic has been writing on this for years.

Seed Stage 108

Seed Stage Cap Table Early Stage Malaysia 108

Gust

SEPTEMBER 29, 2011

Given that convertible debt financing has become the de facto standard for small (<$1MM), early stage deals in recent years, I thought I would write a primer on the elements of a term sheet and definitive documents for entrepreneurs looking at the earliest stage financing rounds.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

YoungUpstarts

APRIL 12, 2016

What stops a majority from moving ahead to the execution stage is funding. Most businesses – online or offline, need seed capital to get established and without access to these funds, launching a business can seem like an improbable dream. In the early stages of business, sweat equity can often be a good substitute for cash.

Cofounder 100

Cofounder Sweat Equity Startup Seed Capital 100

Haystack

SEPTEMBER 2, 2018

Most of the rounds I participate in today are priced equity rounds. The equity round process bakes this in, and helps every participant to know what they’re raising or holding at any given point, dissuading the company from taking on additional capital without some burden. Payment may be delayed.

Seed Stage 76

Seed Stage Seed Capital Equity Europe 76

Feld Thoughts

AUGUST 12, 2011

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. Feeling overwhelmed, Dick emailed his friend Josh, the CEO of an early-stage startup in Boulder, to see how they figured out all of this stuff.

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Convertible equity? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” Convertible debt? It doesn’t bear interest or require repayment upon maturity.

Finance 134

Finance Convertible Security Equity Seed Stage 134

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. Moreover, assuming an eligible equity financing takes place before the maturity date, the interest isn’t paid in cash, but rather is added to the principal amount of the note before converting it to equity.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Business Plan Blog

JANUARY 2, 2014

government’s long standing restrictions on fundraising has given life to a new type of financing called crowdfunding that allows Angel and other early stage investors to quickly assemble a group of investors over the internet. Download our free Raising Capital from Angel Investors eBook. An easing on some of the U.S.

Angel Groups 51

Angel Groups Accredited Investor Angel Investor Due Diligence 51

Software By Rob

JANUARY 8, 2019

Hundreds and hundreds of tweets, re-tweets, likes, Hacker News upvotes, email responses…it was immediately obvious that there is pent up demand for this kind of alternative early-stage startup funding. And in exchange for this $6k-$18k and mentorship, YC asked for 7% equity. 2: We Focus on Early Stage SaaS.

Early Stage 46

Early Stage Valuation Seed Capital Revenue 46

Steve Blank

JULY 20, 2015

Today he is the founder of M34 Capital , a seed capital fund that focuses on early-stage projects being spun out of academic and corporate research labs. government accelerator that takes no equity. Listen to my entire interview with Errol: If you can’t hear the clip, click here. Lessons for the Country.

Government 120

Government Channel Southern California Lean 120

Both Sides of the Table

MAY 15, 2010

Next Wednesday we’ll have Dana Settle of Greycroft Partners, a New York / LA early-stage venture capital fund. But when the finally convert the debt to equity the round gets filed with the SEC and thus journalists often pick up on it. They also avoid Reg D.

Stealth 285

Stealth SEC Advertising Accredited Investor 285

Business Plan Blog

OCTOBER 4, 2013

Aligning the Startup Team Strategy with the Capitalization Strategy. The single most important factor to raising capital for any tech startup is the management team. This is true for early stage funding as well as venture capital funding. Be sure to leave plenty of equity for investors. Early Stage.

Part-Time VPE 79

Part-Time VPE Fractional VPE Cofounder CTO Hire 79

The Next Web

OCTOBER 3, 2012

Here’s the problem: this opportunity doesn’t exist for early-stage startups, because, by definition, they have no users or customers. Worrying about “scale” in the early days of your startup is simply a bad investment. Note: I’m not talking about equity.

Cofounder 155

Cofounder Technical Cofounder Technical Review Software Review 155

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. Here’s the scenario. So they recapitalize the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

maplebutter.com

JANUARY 8, 2013

When it comes to early stage investing – it’s all gut. Does it make sense to spend this time speaking about your early stage start-up when your product has not even entered Alpha testing? Typically its way more important to build product, and pull in early users to give you that feedback vs. speaking about it.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

VC Cafe

JULY 5, 2010

A s venture funds struggle to raise money in Israel, seed capital, one of the earliest and riskiest stages of investment, is becoming harder and harder to secure. based Angel capital with early stage technology companies in Israel, and do so in a way that substantially mitigates the risk of seed stage investing.

Technical Review 106

Technical Review Software Review Seed Stage 106

techcrunch.com

FEBRUARY 19, 2010

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Not a big shock, but things don’t look pretty, especially in the venture capital world. Been there Done that This is very depressing for all future founders, or even currently early stage founders.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62