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

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

JANUARY 20, 2020

Yet as I mentor entrepreneurs around the country, it still seems to be one of the least understood approaches to startup funding, with more myths than accredited angels and professional venture capital investors combined. Even with this, crowdfunding today means any one of the following five quite different models: Rewards model.

Accredited Investor 324

Accredited Investor Entrepreneur SEC Equity 324

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

It is no secret that the world of venture capital (VCs) was turned upside down by the recent Recession, and many other changes in the marketplace. Every early-stage startup should explore this new funding alternative. New “up-and-comer” VCs focus on early-stage companies.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

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. Only one-third make it past their tenth anniversary. Solicit funds from friends and family.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Startup Professionals Musings

OCTOBER 8, 2023

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Their realm fits between crowdfunding and venture capital sources. Early stage research and development won’t excite angels.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

Startup Professionals Musings

APRIL 24, 2013

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. According to the Silicon Valley Venture Capitalist Confidence Index® for the First Quarter 2013, the Q1 increase marks three consecutive quarters of positive sentiment among Silicon Valley venture capitalists.

Venture Capital 238

Venture Capital Silicon Valley Massachusetts California 238

Startup Professionals Musings

JULY 16, 2023

None normally work for or provide funds for early-stage startups. Startups looking for an angel investor, or a Venture Capital investment usually realize that neither of these sources of funds normally has any connection with a bank. Many investment banks even call themselves “boutiques.”

Early Stage 182

Early Stage Silicon Valley Private Equity Initial Public Offering 182

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

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

OCTOBER 17, 2022

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recession several years ago and the recent pandemic: Venture capital funds are regaining momentum.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

SEPTEMBER 9, 2010

It is no secret that the world of venture capital (VCs) has been turned upside down by the recession, and the many other changes in the marketplace. Every early-stage startup should explore this new funding alternative. New “up-and-comer” VCs focus on early-stage companies.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

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. Commercial product prototypes.

Angel Investor 256

Angel Investor Early Stage Incubator Government 256

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

OCTOBER 26, 2020

None normally work for or provide funds for early-stage startups. Startups looking for an angel investor, or a Venture Capital investment usually realize that neither of these sources of funds normally has any connection with a bank. Many investment banks even call themselves “boutiques.”

Silicon Valley 362

Silicon Valley Private Equity Initial Public Offering Term Sheet 362

Startup Professionals Musings

APRIL 17, 2023

Thus your startup maturity and growth stage is the primary key to success with potential funding sources. Different types of investors tend to specialize in capitalizing on businesses at different stages. Future opportunity size doesn’t count in the early stages. Congratulations!

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

JUNE 25, 2012

After bootstrapping, friends and family are the most common funding sources for early-stage startups. Venture capital. As a rule of thumb, don’t try this one in the earlier stages, and don’t try it unless you need more than $1 million. Just don’t quit your day job before your new company is producing revenue.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

AUGUST 3, 2010

But until now, I’ve never seen a study of exactly how that plays out for startup founders for current venture-backed companies, specifically: race, age, experience and the number of founders per company. California (Silicon Valley), New York (NYC), and Massachusetts (Boston) are the places to be in the US for venture capital attention.

Venture Capital 221

Venture Capital Massachusetts California New York 221

Startup Professionals Musings

DECEMBER 6, 2014

Finally I realized that Venture Capital and Angel investors are actually humans, despite some views to the contrary. 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.

Angel Investor 268

Angel Investor Intellectual Property Entrepreneur Early Stage 268

Startup Professionals Musings

AUGUST 4, 2014

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. The CFO may have a major financial background, but might be a minority owner.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

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

MAY 5, 2010

Last week at an angel investor forum I was privileged to meet Stephanie Spong, who is a Principal with EPIC Ventures, an increasingly rare early stage VC firm. Stephanie: I am a venture capitalist currently based out of Santa Fe, New Mexico, with EPIC Ventures. Stephanie: I love building companies. Marty Zwilling.

Venture Capital 164

Venture Capital New Mexico Mexico Early Stage 164

Startup Professionals Musings

JANUARY 27, 2021

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Their realm fits between crowdfunding and venture capital sources. Early stage research and development won’t excite angels.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

MARCH 16, 2011

After bootstrapping, friends and family are the most common funding sources for early-stage startups. Venture capital. As a rule of thumb, don’t try this one in the earlier stages, and don’t try it unless you need more than $1 million. Just don’t quit your day job before your new company is producing revenue.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

JANUARY 19, 2020

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recession several years ago: Venture capital funds are still regaining momentum.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Startup Professionals Musings

AUGUST 5, 2023

The right investor also changes as you move through the different startup stages. Friends and family are key at the idea and early development stages, when you have minimal business valuation. Looking in the right place for the wrong investor won’t help you.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246

Startup Professionals Musings

SEPTEMBER 25, 2023

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. Their only recourse is that first tier of investors, fondly called Friends, Family and Fools.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

JULY 22, 2020

Thus your startup maturity and growth stage is the primary key to success with potential funding sources. Different types of investors tend to specialize in capitalizing on businesses at different stages. Future opportunity size doesn’t count in the early stages. Congratulations!

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

NOVEMBER 22, 2020

The right investor also changes as you move through the different startup stages. Friends and family are key at the idea and early development stages, when you have minimal business valuation. Looking in the right place for the wrong investor won’t help you.

Stealth 434

Stealth Startup Angel Investor Bootstrapping 434

Startup Professionals Musings

JULY 11, 2021

If the entrepreneur wants total control of their own venture, with no one looking over their shoulder, they should work within the limits of their own resources, a process called bootstrapping. Investors will expect at least one seat on the board, and expect a board report from you each month on key items.

Term Sheet 433

Term Sheet Advisory Board Liquidation Preference Startup 433

Startup Professionals Musings

MAY 21, 2023

Solicit venture capital investors. This is the primary source of non-personal funds for very early-stage startups. These organizations, like Y Combinator , are very popular these days, and are often associated with major universities, community development organizations, or even large companies.

Equity 266

Equity Startup Small Business Administration SBA 266

Startup Professionals Musings

APRIL 24, 2022

The good news is that a recent Kauffman Early-Stage Entrepreneurship (KESE) Index shows the highest level of new business activity recorded in the last two decades, and the cost of entry at an all-time low. In this context, it’s time for every business, not only startups, to take a fresh look at the basics of business success.

Intellectual Property 281

Intellectual Property Startup Early Stage Venture Capital 281

Startup Professionals Musings

AUGUST 29, 2020

Solicit venture capital investors. This is the primary source of non-personal funds for very early-stage startups. These organizations, like Y Combinator , are very popular these days, and are often associated with major universities, community development organizations, or even large companies.

Equity 436

Equity Small Business Administration SBA Syndicate 436

Startup Professionals Musings

MARCH 1, 2010

After bootstrapping, friends and family are the most common funding sources for early-stage startups. Venture capital. As a rule of thumb, don’t try this one in the earlier stages, and don’t try it unless you need more than $1 million. Just don’t quit your day job before your new company is producing revenue.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

Startup Professionals Musings

OCTOBER 16, 2023

Project your cash burn rate to keep at least 18 months between venture capital or angel investments. Calculate investment amounts and timing. Initial sales success means more cash will be needed for inventory, receivables, facilities and people.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

Startup Professionals Musings

OCTOBER 20, 2014

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. According to the Silicon Valley Venture Capitalist Confidence Index® for the First Quarter 2014, the Q1 increase marks seven consecutive quarters of positive sentiment among Silicon Valley venture capitalists.

Silicon Valley 271

Silicon Valley Venture Capital Massachusetts California 271