Startup Professionals Musings

article thumbnail

Some Good Startups Don’t Qualify For Equity Investors

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Government grants.

Equity 235
article thumbnail

10 Keys To Surviving Startup Cash Flow Requirements

Startup Professionals Musings

Nevertheless, it’s an option that doesn’t cost you equity. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. In general, banks won’t give you a loan until the business is cash-flow positive, but there are notable exceptions.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

6 Realistic Tactics For Funding Charitable Businesses

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Government grants.

article thumbnail

5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules. Investors cannot verify accountability or governance. In equity crowdfunding, no investor is representing their own interest.

Equity 411
article thumbnail

5 Steps To Finding The Best Investor For Your Startup

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Investor agreements should always be reviewed by an attorney who is familiar with startup equity investment deals. To get the terms you want, it’s better to start with your own term sheet.

article thumbnail

10 Tips For A New Venture To Survive The Early Years

Startup Professionals Musings

The most effective new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. This source is a major focus these days, due to government initiatives to incent research and development on alternative energy and other technologies. Join a startup incubator.

article thumbnail

Don’t Expect An Equity Investor For Your Non-Profit

Startup Professionals Musings

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Government grants. equity funding investor non-profit philanthropist' Individual and institutional donations. That’s a higher calling.

Equity 207