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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. If a domain name is critical to a brand and the domain is not empty, the best course may be to find a new name. If someone violates the trademark by using a certain domain name, the startup could make claim in court.

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6 Tips for Coming Up With Your Million-Dollar Business Idea

Up and Running

With my third business, I didn’t even try to be original—I purchased a custom framing franchise and piggybacked to success on someone else’s name. David sold his recording equipment for $50,000 and they borrowed the rest of their seed money from a bank. What I’m saying is, I’m wholly unqualified to offer startup advice.

Detroit 156
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Choose Your VC Investor Carefully

Both Sides of the Table

For example, a recent phone call I had with a young entrepreneur straight out of one of the most prestigious engineering schools in America he asked, “I have an offer for $400,000 in seed money but the VC wants me to agree now to bring in a new CEO.&# This company is doing its SEED round and they already want to bring someone new in.

Pakistan 297
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The best advice startups will never follow

Berkonomics

There’s a common expectation among entrepreneurs that seed money from family is great – letting close relatives in at the ground floor. I was a co–lender and assumed the chairmanship of a young startup where the entrepreneur’s cousin also loaned money under the same terms. The problem, of course, comes if the business fails.

Valuation 127
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Should you raise on convertible notes or do an equity round?

Hippoland

A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity. You may not know what you’ll be able to raise or what makes sense to raise before you start.

Equity 48
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The Corrosive Downside of Acquihires

Both Sides of the Table

Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. I know the buyers try the best to believe that [insert well known founder name here.

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Timing: When to raise seed funding.

Scalable Startup

High growth startup companies need seed money to get things going. They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). Every day it gets a little better and our brand name gets a little more well known. Without funding most tech startups will die.