Gust

AUGUST 19, 2012

Marketing, sales, and partners. What equity is the company willing to give in return for the investment? List and position your competition, or alternatives available to the customer. Highlight your sustainable competitive advantages, and barriers to entry. Describe marketing strategy, sales plan, licensing, and partnership plans.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Gust

AUGUST 5, 2012

Marketing, sales, and partners. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Competing with IBM, Microsoft, and other large companies should never be minimized.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. For this round of investment, the angels collectively purchase 20-40% of the equity of the company and are seeking a return on investment of 20-30X in a period of five to eight years.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Gust

DECEMBER 31, 2012

How can you beat finding someone who has been there and done that, able to mentor Gen-Y, has lots of connections to people in your industry, and is often willing to work for equity alone? They have the maturity and sophistication to deal with your demanding executives and partners. Angel investor. Customer service.

Advisory Board 177

Advisory Board Angel Investor Startup Equity 177

Gust

AUGUST 7, 2012

For example, I saw a founder tell investors, during a pitch session, that some investors screwed him and his previous partners were dishonest. Sweat equity can be a problem. And getting too aggressive too quickly is a problem. They assume a single significant lie is a tip of an iceberg.

Business Plan 172

Business Plan Sweat Equity Salary Founder 172

Gust

JULY 1, 2012

We are talking about angel investors here, meaning people who invest their own money in early-stage startups for a share of the equity. It doesn’t make financial sense to give up equity ownership on an asset purchase, with built-in collateral. Angel groups almost never supply financing for real estate purchases, or personal loans.

Angel Groups 143

Angel Groups Angel Investor Early Stage Startup 143