Gust

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New Early Stage Financing Options for Entrepreneurs

Gust

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Early-stage startup. Every startup is early-stage to someone.

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There seems to be a lack of long-term investment in startups. Why is the 3-5 year exit strategy more desirable than a 10-20+ year timeframe?

Gust

Precisely because seed stage investments in private startup companies are NOT Warren Buffet’s types of investments. Early venture and angel investments are much, much riskier than Buffett’s, with more than half of them typically failing completely and losing the entire investment.

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Angel Investors Do Make Money, Data Shows 2.5x Returns Overall

Gust

Conventional wisdom dictated that they made reckless investments in very early-stage ventures mostly doomed to fail. Deductions like this are problematic because early-stage venture investing does not happen in an efficient market. Let’s take a look at the actual data. (If and the U.K.,

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

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. Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

Finance 134
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Valuations 101: Scorecard Valuation Methodology

Gust

We also have data points for VC investments in seed/startup companies (but not necessarily pre-revenue companies). The following chart from Dow Jones VentureSource shows very little variation in pre-money valuation of VC seed stage deals over the past decade.

Valuation 146