Startup Professionals Musings

MARCH 16, 2016

This term refers to an initial venture-capital investment, often wrongly sought to seed early product development. Sweat equity. It implies runaway investor speculation on future values, fear of missing out on trends, and it leads to unicorns. Frothy is good for entrepreneurs. Seed-round investment.

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Software Review Sweat Equity Accredited Investor Angel Investor 120

socialmatchbox.com

OCTOBER 23, 2010

Another option is sweat equity. It is important to realize that most people who are willing to work for sweat equity are not a) the best, b) in demand, and c) going to put their heart and soul into your project. Motivation to work for sweat equity is something else that founders tend to take for granted.

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Both Sides of the Table

APRIL 19, 2011

If you need money to even hire a developer [means you cannot even excite one person to put in some sweat equity – not a good sign about your ability to motivate people.]. Passion is infectious – people respond to it. Confidence is good, cockiness is not. •

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Startup Professionals Musings

JUNE 1, 2015

Image via Flickr by Jupiter Labs Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup was $23,000, usually in the form of a convertible loan, rather than an equity investment.

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David Teten

MARCH 9, 2021

One or more of our past coworkers are joining us in this new business, and working for sweat equity.”. If we meet you over a period of a month, we’ll notice what happens during that month. We hired a coach to help make us a world-class team.” . One of our past colleagues / managers is investing.”. “We

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Pascal's View

AUGUST 12, 2009

First, the National Venture Capital Association has published data revealing that over 90% of the jobs created by venture-backed companies occur AFTER they go public—and this relationship holds over the past 40 years.

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Up and Running

DECEMBER 23, 2019

Sweat Equity. “I Before we took on venture capital investors, we funded our MVP by competing in local and university business competitions. You can use your own savings to fund your company and move to a cheaper area to save money. Local Business Plan Competitions.

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Finance Sweat Equity Bootstrapping Entrepreneur 92

Up and Running

JUNE 23, 2015

“It took an enormous investment of sweat equity on both our parts,” Allyson admits. Allyson says that she and co-founder Meg knew that more traditional sources of funding like venture capital wouldn’t be the easiest avenue for a social enterprise, so they connected with an organization called Investor’s Circle.

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Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years.

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Up and Running

AUGUST 19, 2014

To Thiel’s point above, you’ll likely want to hold off on paying yourself if securing venture capital funding is among your top business goals. Owning a business requires plenty of “sweat equity,” and initially often results in working far harder than you’re being compensated for—and earning less than if you worked for someone else!

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Rob Go

APRIL 22, 2014

Exposure to the venture capital process and a behind-the-scenes look to how VC’s work and evaluate deals. I’ve said before that one of the downsides of Venture Capital is that it tends to be a negative job. The negatives are relatively well known too. And for some founders, it probably does help.

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Austin Startup

SEPTEMBER 19, 2017

You might consider starting with an offer to invest at a low valuation before discussing sweat equity. Even better if the advisors are able to invest money in the company, even a small amount ($10K), so they feel like there is more at stake. It is up to you as the founder to keep your advisors accountable.

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BeyondVC

APRIL 15, 2011

And with that, it was clear to see how much these startups could accomplish with so little capital and just sweat equity. Real technical experience-what everyone of these startups had in-common was a strong core team of technical founders, rather than business folks outsouring development.

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BeyondVC

APRIL 15, 2011

And with that, it was clear to see how much these startups could accomplish with so little capital and just sweat equity. Real technical experience-what everyone of these startups had in-common was a strong core team of technical founders, rather than business folks outsouring development.

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infochachkie.com

SEPTEMBER 24, 2011

John is currently a partner at Rincon Venture Partners , a venture capital firm investing in early stage web-based businesses, and is a Co-Founder of RevUpNet , a performance-based online marketing agency. Launching Venture (33). Venture Capital (7). John is a CPA and holds an M.B.A. from the Wharton School.

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www.thestartup.eu

OCTOBER 23, 2010

Sweat Equity: Juliette and Marco put in a bit of work during weekends as project managers, designers, developers, sysadmins, etc. MyGengo.com and Tolingo.de. 24h turnaround and a great service. Total cost: $100. Hosting: pay-as-you-go cloud servers, mostly free in the beginning. Debug/usability: UserTesting and $100. Total: $8,350.

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Altgate

MAY 1, 2009

I’m a visual person so here’s how I see it: Entrepreneurs start companies and the founders (“F&# in my chart) invest capital which they grow with sweat equity and then limited partners (“LPs&# ) invest capital via VCs which in turn grows the pie to the eventual “exit&# (which comes in the form of M&A or IPOs).

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Gust

MAY 24, 2012

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

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philipsmith.typepad.com

SEPTEMBER 24, 2011

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game. Predictions.

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Austin Startup

JUNE 26, 2019

No revenue isn’t always a problem for venture-style businesses; no investors + no revenue = challenges for most founders without tremendous self-funding. As we self-funded on a tiny amount of cash, sweat equity and vision, we also worked in a methodical manner, moving the ball down the field week by week.

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Silicon Valley Startup B2C Sweat Equity 54

www.chubbybrain.com

SEPTEMBER 28, 2011

The negativity either impacted investment funding (venture capital fell off a cliff in 2009) or the customers they were targeted as was the case for Untitled Partners who were building a platform for fractional art ownership. Posted in Analysis , Venture Capital. Don't Believe Venture Capital Firm Websites.

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BeyondVC

OCTOBER 8, 2003

VCs like sweat equity. Isn’t the whole point of working at a startup to build real value through equity? Price isn’t everything-sometimes too high of a price can cripple your company. Don’t hire people that expect to get paid back salary.

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rapidrollout.wordpress.com

OCTOBER 23, 2010

How can I go about looking for a (very) good programmer willing to do this as sweat equity? It’s common for a college student to do a sweat equity partnership with another college student. So you see my dilemma. Which avenues would you suggest I should take? Is Your Partner a College Student?

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www.chubbybrain.com

SEPTEMBER 28, 2011

If you are an entrepreneur seeking funding, try our free Funding Recommendation Engine to identify a list of angels, venture capital and state grant programs that best match your business. So, the best way of dealing with this issue is to take a long, long vesting period for all major sweat equity founders.

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Women Entrepreneurs Can

MAY 9, 2019

During the early days, these are your key contributors and they must be willing to put as much sweat equity into the organization as you are. You Trust Your Team. Solid choices in co-founders can make or break a company’s success. Solid Organizational Processes.

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Small Business Force

OCTOBER 14, 2016

I’ve written countless articles and blog posts about raising capital. Professional investors, be they angels, venture capital or private equity firms are always looking at far more deals than they could invest in. It’s one of the single hardest things you will ever undertake in your business career.

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techcrunch.com

FEBRUARY 19, 2010

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Not a big shock, but things don’t look pretty, especially in the venture capital world. 41% of them feel that they qualify for venture capital funding.

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