Startup Professionals Musings

SEPTEMBER 25, 2023

The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment. The vehicle of choice is most often a convertible note, which is really a loan with a specified duration and interest, with an option to convert it to equity when professional investors come in later.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

APRIL 8, 2015

Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. Think twice before you jump in.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

JANUARY 11, 2021

The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment. The vehicle of choice is most often a convertible note, which is really a loan with a specified duration and interest, with an option to convert it to equity when professional investors come in later.

Sweat Equity 346

Sweat Equity Elevator Pitch Equity Venture Capital 346

socialmatchbox.com

OCTOBER 23, 2010

If you post up an ad to an online job board asking for someone to join your very high risk early stage startup company the odds of getting someone who decent are slim to none. If they hire an accountant to help prepare and file their taxes that may cost around $500. Another option is sweat equity.

Part-Time VPE 41

Part-Time VPE Sweat Equity DC Washington 41

Startup Professionals Musings

DECEMBER 16, 2013

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan. They should be asking to speak to you if you are a potential investor or a superstar hire. How much “skin” is already in the game?

Due Diligence 253

Due Diligence Sweat Equity Intellectual Property Burn Rate 253

Startup Professionals Musings

NOVEMBER 2, 2012

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan. They should be asking to speak to you if you are a potential investor or a superstar hire. How much “skin” is already in the game?

Due Diligence 244

Due Diligence Sweat Equity Burn Rate Intellectual Property 244

Up and Running

DECEMBER 23, 2019

What advice do you have for entrepreneurs in the early stages who are considering their funding options? I had already been saving since my early 20s for my business, so when it came time to open up shop, I had the means to do so. Sweat Equity. “I Years’ Worth of Savings. Inexpensive Freelance Labor.

Finance 92

Finance Sweat Equity Bootstrapping Entrepreneur 92

Startup Professionals Musings

SEPTEMBER 5, 2011

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan. They should be asking to speak to you if you are a potential investor or a superstar hire. How much “skin” is already in the game?

Due Diligence 237

Due Diligence Sweat Equity Intellectual Property Entrepreneur 237

Gust

DECEMBER 8, 2013

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan. They should be asking to speak to you if you are a potential investor or a superstar hire. How much “skin” is already in the game?

Due Diligence 174

Due Diligence Sweat Equity Intellectual Property Burn Rate 174

YoungUpstarts

APRIL 12, 2016

To do this, you will need to invest money in hiring programmers who can build and maintain the app. In the early stages of business, sweat equity can often be a good substitute for cash. By compartmenalizing your business idea, you can identify smaller components that can be launched with your own savings.

Cofounder 100

Cofounder Sweat Equity Startup Seed Capital 100

Startup Professionals Musings

AUGUST 20, 2010

The intent of this question is to determine the level of commitment of founders, both cash and "sweat equity,” and how much others have already invested into this plan. They should be asking to speak to you if you are a potential investor or a superstar hire. How much "skin” is already in the game?

Due Diligence 229

Due Diligence Sweat Equity Intellectual Property Startup 229

Austin Startup

SEPTEMBER 19, 2017

A strong advisor can walk you in the door to the same number of companies as 2–3 new sales hires. The more disruptive an idea, the harder it is the evaluate at an early stage. You might consider starting with an offer to invest at a low valuation before discussing sweat equity.

Advisory Board 48

Advisory Board Sweat Equity Marketing Vertical 48

infochachkie.com

SEPTEMBER 24, 2011

At the early stages of your company’s life, you cannot rely on disinterested, hired guns to define your company’s key tasks. John is currently a partner at Rincon Venture Partners , a venture capital firm investing in early stage web-based businesses, and is a Co-Founder of RevUpNet , a performance-based online marketing agency.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Small Business Force

JANUARY 25, 2013

you think you're the only one operating that way, think again.It's one of the big problems in early stage companies. Too many entrepreneurs end up not only investing their life savings but continuing to also invest "sweat equity" while paying employees, suppliers and landlords.

Sweat Equity 37

Sweat Equity Salary Early Stage America 37

philipsmith.typepad.com

SEPTEMBER 24, 2011

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game. Predictions.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40