Startup Professionals Musings

FEBRUARY 25, 2023

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

APRIL 4, 2022

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. The positives are that you give up no equity, and these apply to the early startup stages, but they do take time and much effort to win. Use crowd funding.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

FEBRUARY 8, 2013

If both of you are experts at software development, even though one loves design and the other loves coding, that still won’t get the marketing done. Look at the big picture first of development, finance, and marketing/sales. Passion for what they do.

Partner 258

Partner Software Review CTO Hire Equity 258

Startup Professionals Musings

MAY 25, 2020

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

OCTOBER 16, 2022

They couldn’t possibly understand the new social media culture, new technologies, or have the determination to beat their younger counterparts in the market. Pew says the Boomer demographic is the largest mainstream pool of experienced talent in the market today, and will be for the foreseeable future. Member of the Advisory Board.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

DECEMBER 6, 2019

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.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

OCTOBER 6, 2023

A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity. Startup equity investments imply a long-term business relationship, lasting an average of five years. Traction in the marketplace.

Technical Review 296

Technical Review Due Diligence Term Sheet Bankruptcy 296

Startup Professionals Musings

NOVEMBER 4, 2022

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. It just means that the cofounders trust one of their own and are willing to follow. The industry veteran.

Technical Cofounder 309

Technical Cofounder Cofounder Advisory Board Startup 309

Startup Professionals Musings

FEBRUARY 8, 2021

In fact, the cost may be minimal, if you do your networking and build a relationship with an experienced business executive or two in your domain who are willing to share and give back for a nominal retainer, perhaps one percent of your new startup equity. The cost of a co-founder is usually fifty percent of your equity.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

AUGUST 19, 2020

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

SEPTEMBER 21, 2018

If you are one of the thousands of entrepreneurs who need equity funding to get your startup going (no loans to repay), you are probably overwhelmed at the prospect of finding, contacting and pitching to the huge number of qualified angels and investment groups around the country. Prepare a slide deck to highlight product and business.

Equity 236

Equity Intellectual Property Elevator Pitch Social Media 236

Startup Professionals Musings

OCTOBER 20, 2023

Most experts agree that the pace of business change is increasing , and all the business owners I know are struggling to keep up, much less surpass the wealth of global competitors now entering the market. These advisors need a stake in your success, like a monthly stipend, or an equity share of the business.

Marketing 290

Marketing Leadership Differentiation Equity 290

Startup Professionals Musings

JUNE 2, 2021

Manual tracking and occasional surveys won’t keep you competitive in today’s high volume and rapidly changing market. You need a platform that is comfortable with the global scope of today’s market, with it’s wide range of social and economic cultures, trends, and needs. These tolerate negative cash flows for growth.

Software Review 355

Software Review Algorithm Global IPO 355

Startup Professionals Musings

FEBRUARY 27, 2021

By way of a definition, a business or startup incubator is a company, university, or other organization which provides resources to nurture young companies, usually for a share of the equity, hoping to capitalize on their success, or at least strengthen the local economy. Initial funding. Expert mentoring and training.

Incubator 366

Incubator Technical Review Due Diligence Venture Capital 366

Startup Professionals Musings

JUNE 30, 2019

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. The positives are that you give up no equity, and these apply to the early startup stages, but they do take time and much effort to win. Use crowd funding. Get a loan or line-of-credit.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

Startup Professionals Musings

SEPTEMBER 25, 2019

Plus you have to remember that these 200,000 shares could still be worth nothing in four years, depending on the “strike price” today, compared to the market price four years from now. CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5%

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

JANUARY 24, 2021

A smart investor will take an independent final reading in the market on barriers to entry, active competition, demographics, and price sensitivity. Startup equity investments imply a long-term business relationship, lasting an average of five years. Traction in the marketplace.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

Startup Professionals Musings

AUGUST 29, 2018

In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. Professional investors, and more serious entrepreneurs, are most interested in money for ownership of a portion of the business (equity), and equity crowdfunding is still a small portion of the total (less than 10 percent), but growing.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Startup Professionals Musings

FEBRUARY 9, 2020

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. It just means that the cofounders trust one of their own and are willing to follow. The industry veteran.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

APRIL 23, 2012

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). Expertise can be marketing, technical, financial, or sales.

Intellectual Property 252

Intellectual Property Equity Cofounder CTO Hire 252

Startup Professionals Musings

JANUARY 18, 2020

They couldn’t possibly understand the new social media culture, new technologies, or have the determination to beat their younger counterparts in the market. Pew says the Boomer demographic is the largest mainstream pool of experienced talent in the market today, and will be for the foreseeable future. Member of the Advisory Board.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

SEPTEMBER 29, 2018

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

NOVEMBER 26, 2022

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. Every startup I know has had to pivot at least once, no matter how certain they were of their solution and market. Many times friends and family have been broken by failed investments.

Cost 267

Cost Bootstrapping Advisory Board Startup 267

Startup Professionals Musings

JULY 14, 2014

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 (coming soon). The positives are that you give up no equity, and these apply to the early startup stages, but they do take time and much effort to win. Use crowd funding.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

JULY 1, 2017

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. The positives are that you give up no equity, and these apply to the early startup stages, but they do take time and much effort to win. Use crowd funding. Get a loan or line-of-credit.

Product Development 177

Product Development Cost Developer Product 177

Startup Professionals Musings

MAY 25, 2022

You need to do the due diligence to make that decision before you sign away your equity. In my experience, most technical entrepreneurs have little interest or expertise in the financials, or marketing. Differences you find after the deal is consummated can be painful and expensive, just as in any marriage.

Technical Review 313

Technical Review Due Diligence Partner Cofounder 313

Startup Professionals Musings

FEBRUARY 19, 2013

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 (coming soon). The positives are that you give up no equity, and these apply to the early startup stages, but they do take time and much effort to win. Use crowd funding.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

SEPTEMBER 12, 2014

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Startup Professionals Musings

JANUARY 12, 2018

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.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Startup Professionals Musings

OCTOBER 5, 2014

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

FEBRUARY 29, 2020

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. Every startup I know has had to pivot at least once, no matter how certain they were of their solution and market. Many times friends and family have been broken by failed investments.

Bootstrapping 310

Bootstrapping Advisory Board Venture Capital Startup 310

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 23, 2013

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Creative marketing. startup control equity bootstrapping Rich Christiansen business' When you let them on board, you lose control of your destiny. Marty Zwilling.

Equity 241

Equity Bootstrapping Startup Merger 241

Startup Professionals Musings

AUGUST 6, 2023

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. In equity crowdfunding, no investor is representing their own interest. These groups are now largely run by volunteers at no cost to entrepreneurs.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Startup Professionals Musings

NOVEMBER 7, 2016

For IBM, the Personal Computer was a paradigm shift from their big business legacy, built with new technologies for totally new markets, and battleships turn very slowly. The burn rate was extremely high, with no one working for equity or deferred compensation. Measurements set on internal objectives, rather than market traction.

Technical Review 214

Technical Review Entrepreneur Silicon Valley Burn Rate 214

Startup Professionals Musings

JUNE 20, 2016

Even if your product is a technological marvel, I look for balanced strength on the team in finance, marketing and operations. Investors all know that the startup road is long and hard, so they look for people who have put and will continue to put “skin in the game” -- time, sweat equity, and money. Able to communicate on every level.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Software Review 152

Startup Professionals Musings

SEPTEMBER 11, 2023

Many successful crowdfunding campaigns, just like many startups funded by angels and VCs, fail miserably due to normal business challenges, including inventory buildup, marketing, competition, and customer support. Crowdfunding success does not mean business success. We still have no experience on how well this will work.

Accredited Investor 252

Accredited Investor SEC Campaign Equity 252