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Crowd-Funding Success Usually Brings New Challenges

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In my opinion, that’s why micro-finance has rarely worked, even for loans. Intellectual property is jeopardized. Investors know how tough it is to get a set of terms accepted by even two investors, much less hundreds. The administration of legal conditions, signatures, disclosures, and distributions is a nightmare.

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10 Rules of Thumb for Startup Investment Valuation

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Assign real value to intellectual property. In finance, the income approach describes a method of valuing a company using the concepts of the time value of money. Find “comparables” who have received financing (market approach). NewCo might be able to pick up an initial $50K valuation on this item.

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Do It Right The First Time, Part II: Visit the Doctor or House Call?

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Readers can anticipate my next point in continuing the analogy: It makes no more sense for a non-lawyer to prepare fundamental legal, governance, equity and intellectual property documents than it would for a patient to self-diagnose and begin taking prescription-strength antibiotics or other medications.

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The 3 Essential Questions You Have to Answer for Angel Investors

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Defensible doesn’t mean you have to have patents and defensible intellectual property regardless; it does mean a distinguishable difference that people can understand in an instant. If you can’t answer yes to all three of these questions, you should be looking for a different way to finance your startup.

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10 Startup Shortcuts That Will Be Back To Haunt You

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It also forces you to pick a name for your company and put other intellectual property stakes in the ground. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. It’s not that hard to change later to a C-Corp.

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Two Great Moments in Pitches

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She, the CEO of a fledgling pharmaceutical company with a lot of intellectual property, research, management experience, was confident, rolling through slides, and building momentum. It struck me at the time as an annoying interruption, ill timed, and off point. It was just a few minutes into the pitch.

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Who, When, and How Much? A Quick Introduction to Startup Financing

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For a first time entrepreneur trying to figure out the arcane world of startup financing, it can be very confusing to understand the roles that different types of investors play in funding promising companies, as well as the point in a company’s life at which they enter the stage.

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