OnlyOnce

JULY 30, 2020

Institutional investors can require liquidity too, and while it’s possible to buy out shareholders or create a debt / equity financing, you might think about selling the company instead.

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

View from Seed

JUNE 7, 2016

Just to discuss a few benefits more in-depth… First and foremost, getting into a regular cadence readies the company to think and operate more professionally for later rounds of financing. At NextView, one founder we invested in last year proactively asked us, as her lone institutional investor, to start doing this.

Seed Stage 120

Seed Stage Founder Seed Capital Institutional Investors 120

Both Sides of the Table

OCTOBER 12, 2014

Prorata investments rights given investors the right to invest in your future fund-raising rounds and maintain their ownership % in your company as your company grows and raises more capital. New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

David Teten

JANUARY 9, 2013

Aspen is looking for institutional investor and entrepreneur speakers willing to share their investing insights and personal experiences. What incentives are there to incorporate social financing into their overall investment strategy? What are the key sectors where social financing can have significant impact?

Tunisia 114

Tunisia Libya Algeria Mauritania 114

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

View from Seed

APRIL 30, 2019

Fairly frequently public market investors believe that a new consumer company is “the next X”. We first saw this with Twitter in 2013 when they went public and many (both retail & institutional investors) believed that company might be the “next Facebook”. Something similar happened with Snapchat in 2017 with their IPO.

IPO 180

IPO B2B B2C Institutional Investors 180

Gust

JANUARY 31, 2013

Modern theories of economics and finance teach us that in a world of perfect information, the market will decide what a fair price is for any company’s stock at any point in time based on its current financial condition, results of past operations, analysts’ forecasts of future performance, industry conditions and so on.

SEC 158

SEC Prospectus United States Technical Review 158

David Teten

JULY 14, 2014

The most pervasive has been the expansion of passively managed portfolios, such as index funds and ETFs, which allow both retail and institutional investors access to a broad spectrum of investment opportunities at a much lower cost. Do you think “too big to fail” is “too big to exist”, as some argue?

Management 114

Management Portfolio Institutional Investors Government 114

David Teten

SEPTEMBER 5, 2014

Like many established finance & media companies, GLG knows that the tech startup sector is a growing part of the economy. I’ve also presented at a range of industry conferences on how institutional investors can use professional networks for research , origination , market research , and value creation.

New York 114

New York Technical Review Networking Advisory Board 114

Up and Running

SEPTEMBER 26, 2016

For startups and high-growth businesses, as you scale and encounter new milestones and obstacles, you will be faced with the question of how to finance and plan for that growth. Luckily for founders, the ways in which you can finance your startup are varied based on your business model, your preference, your goals, and timeline, and so on.

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Startup Professionals Musings

MARCH 9, 2018

Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Founder 254

Founder Cram Down Angel Investor Equity 254

The Startup Magazine

OCTOBER 27, 2019

It’s no secret that one of the first things you need to do to get a start-up off the ground is secure financing from investors, a bank, alternative funder, or other business. It could mean the difference between failure and success. The post The Importance of Bridge Funding for StartUps appeared first on The Startup Magazine.

Institutional Investors 61

Institutional Investors Startup Security Finance 61

Agile VC

APRIL 30, 2019

Fairly frequently public market investors believe that a new consumer company is “the next X”. We first saw this with Twitter in 2013 when they went public and many (both retail & institutional investors) believed that company might be the “next Facebook”. Something similar happened with Snapchat in 2017 with their IPO.

IPO 100

IPO B2B B2C Institutional Investors 100

The Startup Magazine

JULY 1, 2022

With these structural improvements, institutional investors, like pension funds and hedge funds, can contribute trillions of dollars into the marketplace resulting in a more stable market with less volatility and a more predictable investment for the individual investor.

Stock 135

Stock Institutional Investors Demand Portfolio 135

Haystack

OCTOBER 2, 2019

What I will say is many institutional investors require them, and fair or not, most investors view the pitch deck as a proxy for how the founders will present to customers. Part of being a founder is simply about being able to finance the operation. 2/ Pitch Deck Design: There’s a robust debate about slide decks.

Deal Flow 106

Deal Flow Cap Table Early Stage Institutional Investors 106

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Both Sides of the Table

SEPTEMBER 25, 2011

Institutional investors will always insist on pro-rata rights. All it says is that the VC has the right (but not obligation) to invest his/her proportional ownership in the next round of financing. In the case of a super pro-rata right the investor (let’s say in your A round) will ask for MORE than their pro-rata right.

Entrepreneur 310

Entrepreneur Dilution Finance Silicon Valley 310

Startup Professionals Musings

APRIL 17, 2013

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

Pascal's View

MARCH 10, 2010

Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: Given recent instances of VC-backed company fraud and questions about the management team, how can institutional investors protect themselves from key person risk? Will they work 24/7 to get the job done? Share and Enjoy:

Government 28

Government Technical Review Due Diligence Institutional Investors 28

David Teten

JULY 3, 2013

Empire Angels is a member-led New York City based angel group of young finance professionals which seeks to invest in and support early stage technology ventures with a focus on young, US based entrepreneurs. Members include representatives of several VCs, family offices and other institutional investors.

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

David Teten

JULY 3, 2013

Empire Angels is a member-led New York City based angel group of young finance professionals which seeks to invest in and support early stage technology ventures with a focus on young, US based entrepreneurs. Members include representatives of several VCs, family offices and other institutional investors.

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

Startup Professionals Musings

NOVEMBER 11, 2015

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Rob Go

SEPTEMBER 2, 2014

Non-institutional Leads. I’ve seen a few cases now where a number of very high-quality institutional investors were interested in investing in a company at valuation, but a non-institutional investor was willing to set terms 1.5 – 2X higher than that valuation. Alternative funding sources.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

The Startup Magazine

FEBRUARY 6, 2020

trillion, it is by far the largest of its sort in the world and financed projects that in other settings may not have passed investment criteria screens. [3]. The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. municipal bond market.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

Hunter Walker

JUNE 21, 2014

One question entrepreneurs sometimes don’t ask when raising seed financing is “will this investor be able to follow on in future rounds.” ” That is, assuming they have pro rata rights, will they look to maintain their ownership stake in the A Round, B Round, etc.

Institutional Investors 91

Institutional Investors Dilution Later Stage Portfolio 91

K9 Ventures

MARCH 23, 2011

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Startup Company Lawyer

MARCH 12, 2009

Any company that raises venture financing will need to be a C corp in order to issue preferred stock. If founders want the benefit of flow through tax treatment with respect to losses prior to an outside financing, an S corp election may make sense as long as there are no entity or non-U.S. citizen/resident stockholders.

LLC 61

LLC Stock Options Preferred Stock Stock 61

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 7, 2012

What’s the secret to manufacturing this combination of foresight, timing, and financing? For the institutional investor, it’s a set of bets. It’s Twitter connecting the world with real-time mass mini-chat before everyone realized how tiny and fragmented our attention spans could become.

Institutional Investors 240

Institutional Investors India China Viral 240

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Board Effect

SEPTEMBER 21, 2020

Shortly after, activist investors followed suit and used the same strategy to advance other important causes. The term ESG was first popularized by the World Bank Group’s International Finance Corporation when they published a report called Who Cares Wins in 2004. That figure accounts for 38% of companies that were investing in ESG.

South Africa 76

South Africa Government Africa Institutional Investors 76

David Teten

FEBRUARY 1, 2017

The Future of FinTech: A Paradigm Shift in Small Business Finance. 14 Industry Trends the Top FinTech Execs are Watching (Institutional Investor). Invest Trends in Fintech. Fintech Survey Report 2016. The FinTech Opportunity. FT Partners Fintech Research. All mistakes are mine.

New York 60

New York Community DC Boston 60

The Equity Kicker

FEBRUARY 9, 2016

There’s been a lot of talk recently about what will happen to startup financing in 2016, including here on this blog. He also surveyed 72 institutional investors in VC funds who said they think they will maintain their rate of commitments to new funds this year.

Marketing 60

Marketing Institutional Investors Venture Capital Later Stage 60

ReadWriteStart

MAY 2, 2012

Getting financing for your startup is rarely easy, but if you approach the wrong investor, you can make it even harder than it has to be. How can there be a ‘wrong investor’?” Approaching the wrong investor is kind of like asking someone who’s married out on a date. Venture capitalists are institutional investors.

Angel Investor 124

Angel Investor Institutional Investors Angel Groups Flash 124

Campus Entrepreneurship

SEPTEMBER 27, 2011

Individuals or institutional investors could then log onto the website, review the loan requests, and decide if they wanted to fund the small business.

Small Business 43

Small Business Finance Institutional Investors Business Plan 43

Growthink Blog

MAY 10, 2012

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88