Startup Professionals Musings

SEPTEMBER 14, 2010

According to Attracting Capital from Angels by Brian Hill and Dee Powers, here are some key clauses that angel investors expect on the first term sheet for the investment you need: Set the price. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. The risk here is what I refer to as the curse of over-capitalization. Seed stage was super tough. That in turn requires more capital. So while the infrastructure cost and startup costs may have declined, the operating costs have increased.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Gust

SEPTEMBER 29, 2011

The most successful serial entrepreneurs in the world may found three or four, perhaps even eight or ten venture-backed startups over the course of their careers. For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.). Knowledge is power.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Steve Blank

APRIL 12, 2013

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. Like the U.S.

Venture Capital 271

Venture Capital China Offshore SBIR 271

View from Seed

SEPTEMBER 13, 2018

Over the past five years, we’ve witnessed an Atomization of the Seed Stage. Early fundraising is no longer a one-and-done fundraise of a single round of Seed capital subsequently followed by a Series A 12–18 months later. How much total capital has been put into the company since founding. 100K in MRR was cited).

Seed Stage 136

Seed Stage Post-Money Valuation Valuation Startup 136

Steve Blank

APRIL 12, 2013

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. Like the U.S.

Venture Capital 163

Venture Capital China Offshore SBIR 163

The Startup Lawyer

OCTOBER 9, 2010

But this morning I read a Dallas Business Journal article that I found amusing: A new accelerator is planning to invest $200,000 and provide up to 45,000 square feet of office space to about 10 mobile app startups in exchange for 15-20% equity in each startup. (a) a) That’s $20,000 per startup for a 15%-20% equity stake.

Dallas 91

Dallas Seed Capital Incubator Post-Money Valuation 91

ReadWriteStart

APRIL 26, 2012

“Angels have significantly increased their investment activity, and are committing more dollars resulting from higher valuations," says Jeffrey Sohl, director of the UNH Center for Venture Research at the Whittemore School of Business and Economics. “It If you’re looking for seed or startup capital, the time to make your move is now.

New Hampshire 120

New Hampshire Early Stage Seed Capital Angel Investor 120

Business Plan Blog

NOVEMBER 22, 2013

How To Allocate Friends & Family Startup Capital. The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. Startup Funding' Market Validation.

Intellectual Property 55

Intellectual Property Advisory Board Startup Seed Capital 55

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

Finance 134

Finance Convertible Security Equity Seed Stage 134

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

Business Plan Blog

DECEMBER 10, 2013

The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. Below are the milestones that you will need to achieve in order to attract seed investment from Angels: Business Plan.

Angel Investor 55

Angel Investor Intellectual Property Seed Capital Advisory Board 55

Business Plan Blog

JANUARY 7, 2014

With venture capital becoming more and more of a bygone dream for early-stage companies, many startups want to turn to angel funding to raise capital but don’t know where to start. This guide will walk you through the process of obtaining seed capital for your startup. Startup Funding'

Search 55

Search Angel Investor Seed Capital Early Stage 55

Software By Rob

JANUARY 8, 2019

Two-and-a-half months ago Einar Vollset and I announced TinySeed , the first startup accelerator designed for bootstrappers. Hundreds and hundreds of tweets, re-tweets, likes, Hacker News upvotes, email responses…it was immediately obvious that there is pent up demand for this kind of alternative early-stage startup funding.

Early Stage 46

Early Stage Valuation Seed Capital Revenue 46

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. Going back to Part I , recall that although a convertible note is technically a loan made to the startup, in practice these loans are rarely expected to be repaid. These deal terms are simple but significant.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Scott Edward Walker

SEPTEMBER 21, 2011

A sophisticated angel investor understands how the startup game is played and the role that he plays. If you’re an entrepreneur looking for seed capital, but don’t know any sophisticated angel investors, you need to hustle and build relationships in order to get “warm” introductions. When will I get my first dividend check?”,

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Rob Go

NOVEMBER 30, 2012

Because time is often the most precious resource for seed funds, it is increasingly important to make every investment more “impactful” in the case of success. This means greater focus on ownership, pre-money valuations, and dollars in. Groups like 500 Startups, and SV Angel continue to build very large portfolios.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

VC Cafe

JULY 5, 2010

A s venture funds struggle to raise money in Israel, seed capital, one of the earliest and riskiest stages of investment, is becoming harder and harder to secure. Our objective is to double, triple or quadruple the valuations of these companies and get them ready for larger investments from VCs or other funding sources.

Technical Review 106

Technical Review Software Review Seed Stage 106

techcrunch.com

FEBRUARY 19, 2010

Not a big shock, but things don’t look pretty, especially in the venture capital world. According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. A lot of the stats weren’t surprising.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Steve Blank

MAY 9, 2017

I’ve spent my life in innovation, eight startups in 21 years, and the last 15 years in academia teaching it. the wave of semiconductor startups in the 1960’s/70’s, the emergence of Venture Capital as a professional industry, the personal computer revolution in 1980’s, the rise of the Internet in the 1990’s and finally.

Restful 222

Restful Silicon Valley Puerto Rico San Jose 222