ReadWriteStart

JUNE 1, 2020

To secure your funding, you must establish the feasibility of your idea through proper planning and implementation. These usually play a role in the very early stage of your business, primarily pre-revenue. I have interacted with a lot of founders who funded their initial business expenses through credit cards.

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Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. Background.

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YoungUpstarts

JUNE 26, 2020

If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. For some entrepreneurs, raising financing can seem like a full time job, particularly in these trying times. Unfortunately, much of this advice is wrong. Well not, wrong exactly.

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Finance Silicon Valley Valuation Startup 205

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? In fact, most early investor work hard to help their startups get to the next level so it makes no sense for the angel investor and founders to be at odds. Convertible debt WITH a cap is stupid for founders. Some thoughts on raising angel money.

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Ratchet Liquidation Preference Equity Stock 354

YoungUpstarts

OCTOBER 28, 2015

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. They also need to decide whether to structure terms as an equity deal or a convertible security deal.

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Up and Running

NOVEMBER 26, 2018

Most healthy businesses need business financing at some point. Startups have to deal with starting costs and ongoing businesses have to finance growth and working capital. Financing options depend on what kind of business you have. Don’t waste your time looking for the wrong kind of financing. You should.

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SBA Venture Capital Angel Investor Technical Review 161

Genuine VC

SEPTEMBER 18, 2014

When Chad Pytel introduced me to Bryan Helmkamp , CEO/Co-founder of Code Climate , I knew that I had to pay attention. Chad is the CEO of thoughtbot, a consulting firm that makes web + mobile apps for early-stage startups. It essentially gives developers another set of eyes on every commit. It’s indispensable.”

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Software Review Chad Ruby PHP 191

The Startup Magazine

OCTOBER 9, 2019

The vast majority of startups fail because the founders that drive them fail to recognize the importance of critical factors such as accounting, cash flow management, and business structure. . A startup that begins to generate cash in the early stages of operation will often make the mistake of confusing income with available cash.

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Technical Review Bootstrapping Startup Finance 81

Steve Blank

MAY 18, 2009

What makes an individual a great startup founder (versus an employee) has been something I had been thinking about since I retired. A Day in the Life of A Founder For those of you who’ve never started a company, let me assure you that it never happens like the pleasant articles you read in business magazines or in case studies.

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Both Sides of the Table

NOVEMBER 29, 2014

This week I wrote about obsessive and competitive founders and how this forms the basis of what I look for when I invest. I quit a very well paid job at Accenture with very little time remaining before making partner and took a risk of having no job security at all. And that’s what differentiates founders and early employees.

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Founder Salary Startup Early Stage 409

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

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Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

MAY 27, 2013

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. It consists of a highly intelligent and opinionated founder – Nick Halstead. In his spare time he raised nearly $30 million. It is really working.

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Advisory Board CTO Hire Fractional CTO Los Angeles 365

techcrunch.com

SEPTEMBER 2, 2012

As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. Ressi estimates that the debt note now accounts for over 50% of all angel and early stage deals. Sometimes these loans have a valuation cap and/or a discount.

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Equity San Francisco Technical Review Angel Investor 87

Steve Blank

MAY 11, 2021

Department of Defense is coming to grips with the idea that the technologies it needs to keep the country safe and secure are no longer exclusively owned by the military or its prime contractors. billion in early funding. Dozens of outreach programs across the military now offer quick revenue to early-stage companies.

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View from Seed

OCTOBER 21, 2014

Sharing these pricing expectations early with potential lead investors fundamentally qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or else it can reduce options to maximize your fundraise outcome. So What Should Founders Do?

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Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

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Small Business Finance Forecast Metrics 95

David Teten

AUGUST 19, 2019

RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Bigfoot Capital. Key elements: .

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BeyondVC

JANUARY 6, 2018

2017 was another year of growing, learning, investing and partnering with amazing founders. Once again, we are grateful to have the opportunity to work with so many amazing founders, advisors, co-investors, and other collaborators to bring the boldstart family together. 2017 Recap. 2 exits including yhat (sold to Alteryx?—?AYX

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Cloud Cofounder Portfolio Advisory Board 60

David Teten

DECEMBER 3, 2019

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. See Bessemer Venture Partners’ A comprehensive guide to security for startups. Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda.

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Technical Review Software Review Analytics Private Equity 78

Gust

SEPTEMBER 29, 2011

It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. A term sheet for a convertible note deal may run two or three pages, versus 8-10 pages for a typical Series A Preferred Stock financing.

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Finance Term Sheet Preferred Stock Bridge Financing 178

David Teten

JANUARY 10, 2012

Panel 1 – How Social Investing is Disrupting Traditional Investing in Public Securities. Howard Lindzon is Co-Founder and CEO of StockTwits, a social network for traders and investors to share real-time ideas and information. Christopher Ahlberg is the CEO and Co-founder of Recorded Future.

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Technical Review Technology North Carolina Switzerland 128

Both Sides of the Table

JUNE 27, 2021

We try to balance deals across (amongst other things): cyber-security, FinTech, computer vision, marketplaces, video games & gaming infrastructure, marketing automation, applied biology & healthcare systems, sustainability and eCommerce. Early-stage venture capital is about extreme winners.

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Bankruptcy Bridge Financing Portfolio Angel Investor 294

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Financing Some Jobs Act Proposals Make Headway.

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Austin Startup

AUGUST 10, 2017

Although we were studying finance, we were always more interested in tech. Before graduating, I decided to forgo the finance path and instead dove into engineering and later sales and product management roles at VersaSuite (health IT) in Austin. But we never lost the finance bug. We were infatuated with tech.

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Technical Review Cofounder Technical Cofounder Austin 48

View from Seed

AUGUST 13, 2014

So to successfully raise a seed round of capital, founders should possess at least a basic understanding of the different types of angel investors they’ll encounter. Doing so can help entrepreneurs not only secure funding in general but better recognize the pros and cons of taking money from certain types of individuals.

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Austin Startup

JUNE 26, 2019

Many people have reached out sharing knowing and kind words about our journey and choice to wind down our venture, as well as their appreciation for my choice to pull back the curtain on what is statistically a common road for many founders. It details a landscape founders like me are excited to sink their teeth into? Of course not!

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. What are Early Stage VC’s Really Asking? Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Just as a refresher.

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Customer Development Developer Customer Silicon Valley 262

Both Sides of the Table

NOVEMBER 9, 2014

We all can intuit the benefits to founders of these trends so there’s little reason to elaborate. How founders get screwed on convertible notes. There are now so many new early stage investors and many of these are new it’s not so obvious whom you can trust. Let me give you a real world example from this week.

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SEC Venture Capital Early Stage Cofounder 352

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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Private Equity Valuation Cap Table Accredited Investor 118

Gust

JUNE 7, 2014

In many, if not most, seed and early stage funding scenarios, the investments are structured in LIFO order: Last In, First Out. 2) Secured creditors. 3) Un-secured trade creditors. 9) Common Stock (including any Preferred that converted to Common, any exercised options, and all Founders stock) and Common stock warrants.

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Warrant Preferred Stock Early Stage Common Stock 157

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

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Finance Convertible Security Equity Seed Stage 134

Eric Friedman

AUGUST 18, 2021

Dan is the co-founder of Standard Treasury, a Y Combinator backed company. He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. How do you get to that point if you have that kind of a view of the world, of founders, and of this space? On Sushi and VC. Everything we do.

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Silicon Valley Venture Capital Cofounder Africa 88

Up and Running

SEPTEMBER 5, 2017

However, the ease with which she was able to secure venture funding was contingent on her ability to overcome what, in the VC world, is often an insurmountable barrier: the fact that she is a woman, and a woman of color, no less. “In According to Fortune , in 2006, female founders were involved in only 2.95

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Venture Capital Lean Cofounder Technical Review 82

YoungUpstarts

JANUARY 12, 2017

Securing adequate financing for any new venture nowadays is an exceptionally difficult proposition, which is why angel investors are considered so valuable to the startup ecosystem. This due to equity ownership interest often requiring an exchange for the early stage funding provided by the investor. Credible Experience.

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Up and Running

JUNE 14, 2017

Early stage idea validation can be accomplished without building an application. Furthermore, as I was proving the viability of Recycler Spotter through the free version, I could have pre-sold the paid membership at a discount for another layer of validation that would have also helped finance product development.

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Technical Review Distribution Redemption Demand 96

VC Cafe

DECEMBER 1, 2022

However, in reality the Metaverse is still in its early stages of development, and yet, we already can see positive examples of its impact. From the Money in the Metaverse (crypto and web3 finance) panel. Into the Metaverse event in London. remain to be solved.

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Generative AI Vertical Early Stage PR 88

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Knowing these will help a founder position her pitch to get investors’ attention. Founders need to keep their eye on the prize — not just the next funding round. Business Model.

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Cofounder Seed Stage Valuation Metrics 429