Startup Professionals Musings

AUGUST 6, 2023

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of angel investment groups and venture capital organizations. Lack of checks and balances on startup valuations. In fact, the latest figures show that crowdfunding globally is expected to grow from USD 1.41

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Lack of checks and balances on startup valuations. These groups are now largely run by volunteers at no cost to entrepreneurs.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Startup Professionals Musings

JUNE 25, 2012

Use this approach before you have a real valuation, a real product, or any real customers. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Just don’t quit your day job before your new company is producing revenue. Friends and family.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

APRIL 17, 2023

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

JANUARY 19, 2020

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recession several years ago: Venture capital funds are still regaining momentum. Super angels sometimes drive up valuations.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Startup Professionals Musings

SEPTEMBER 9, 2010

It is no secret that the world of venture capital (VCs) has been turned upside down by the recession, and the many other changes in the marketplace. I conclude that the genesis of this trend seems to come from several forces, including the following: Less investment capital available due to the recession.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Startup Professionals Musings

AUGUST 4, 2014

Amount of venture funding provided. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. The CFO may have a major financial background, but might be a minority owner.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

Startup Professionals Musings

SEPTEMBER 20, 2017

Hopefully you can see from this list that the people and processes involved in financing a nonprofit have little in common with angel investors, or the venture capital process. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

Startup Professionals Musings

MARCH 16, 2011

Use this approach before you have a real valuation, a real product, or any real customers. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Just don’t quit your day job before your new company is producing revenue. Friends and family.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

AUGUST 5, 2023

Friends and family are key at the idea and early development stages, when you have minimal business valuation. Angel investors typically provide early-stage rollout funding, while venture capital firms won’t be interested until you have real traction and revenue during scaling.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246

Startup Professionals Musings

MARCH 16, 2016

This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Frothy startup valuations. This term refers to an initial venture-capital investment, often wrongly sought to seed early product development. Prime examples include Uber, Airbnb and Snapchat. Seed-round investment.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

OCTOBER 7, 2022

On the other hand, venture capital organizations typically look for needs that exceed $2 million. The average valuation for angel investments is $2 million, which will get you $500,000 for 20 percent of your startup. Every type of investor has comfortable ranges and limits. What business milestones have you met?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

OCTOBER 13, 2013

Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with Angel investors, or the venture capital process. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Startup Professionals Musings

JULY 22, 2020

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

JUNE 5, 2021

High valuation, low profit. Angels are becoming more aggressive as their stock market and real estate assets recover, and institutions again have earnings to risk in venture capital funds. In startups these days, governments are incenting health and alternative energy solutions, to intentionally create a bubble.

Demand 362

Demand Government Venture Capital Valuation 362

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well.

Merger 379

Merger Due Diligence SEC IPO 379

Startup Professionals Musings

NOVEMBER 22, 2020

Friends and family are key at the idea and early development stages, when you have minimal business valuation. Angel investors typically provide early-stage rollout funding, while venture capital firms won’t be interested until you have real traction and revenue during scaling.

Stealth 434

Stealth Startup Angel Investor Bootstrapping 434

Startup Professionals Musings

NOVEMBER 13, 2021

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £80M), I too had no idea of the scope of opportunities, and the 300 or more players already out there. With crowdfunding, entrepreneurs and artists no longer need to wait for family money or venture capital.

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Professionals Musings

SEPTEMBER 15, 2012

Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with angel investors, or the venture capital process. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

MARCH 11, 2016

The business plan should address all key questions, including valuation, funding needed, use of funds and exit strategy. Also, later when you need a larger round of venture capital, the same preparation will serve you just as well, so you might as well learn now how to fly with the angels.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

JANUARY 4, 2020

On the other hand, venture capital organizations typically look for needs that exceed $2 million. The average valuation for angel investments is $2 million, which will get you $500,000 for 20 percent of your startup. Every type of investor has comfortable ranges and limits. What business milestones have you met?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

JULY 3, 2011

Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with angel investors, or the venture capital process. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

FEBRUARY 15, 2015

Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with Angel investors, or the venture capital process. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Startup Professionals Musings

MARCH 1, 2010

Use this approach before you have a real valuation, a real product, or any real customers. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Just don’t quit your day job before your new company is producing revenue. Friends and family.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

Startup Professionals Musings

DECEMBER 27, 2014

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recent recession: Venture capital funds are still recovering from the recession. Super Angels sometimes drive up valuations.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Startup Professionals Musings

JANUARY 22, 2020

Set a realistic valuation for your startup to attract angels. A typical valuation for an angel investment is $2.5M, meaning a $500K investment will cost you 20 percent of your company. Successful valuations above $5M are rare for startups. For later rounds with VCs, you need the detail anyway.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Startup Professionals Musings

JUNE 6, 2010

Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with angel investors, or the venture capital process. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

Startup Professionals Musings

FEBRUARY 2, 2019

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £33M), I too had no idea of the scope of opportunities, and the 350 or more players already out there. With crowdfunding, entrepreneurs and artists no longer need to wait for family money or venture capital.

Cuba 246

Cuba Venture Capital Community Valuation 246

Startup Professionals Musings

MARCH 18, 2016

As an entrepreneur looking for professional investors, one of the quickest ways to lose credibility and get rejected is to start with a ridiculously high pre-money valuation. Equally bad is professing no valuation estimate at all, asking investors to “make me an offer.” First priority is real revenue, customers and contracts.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

Startup Professionals Musings

AUGUST 19, 2018

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started.

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Startup Professionals Musings

FEBRUARY 5, 2018

These are companies that not only have a familiar brand, but carry from five to 35 billion dollar valuations. More capital is available for scaling and brand building. Most of you probably recognize the brand names AirBnB, Instagram, and Slack, all of which are less than ten years old.

IRR 143

IRR Marketing Startup Angel Investor 143

Startup Professionals Musings

MAY 20, 2016

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Lack of checks and balances on startup valuations. These groups are now largely run by volunteers at no cost to entrepreneurs.

Angel Groups 136

Angel Groups Accredited Investor Equity Due Diligence 136

Startup Professionals Musings

FEBRUARY 5, 2012

It wouldn’t work anyway, since your valuation at that stage would be less than the funding, meaning you would have to give away all ownership for the money. Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding sources specialize in certain growth stages.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Startup Professionals Musings

JULY 4, 2014

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started.

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

Startup Professionals Musings

SEPTEMBER 26, 2015

Perhaps they're way off in their valuation (usually far too high), or paralyzed by fear at seeing the other terms, because they have no idea what's normal, and what's worth a fight to the death (their startup's). In very early startups, which have no valuation, the term sheet may specify a convertible note.

Term Sheet 120

Term Sheet Demand Preferred Stock Liquidation Preference 120

Startup Professionals Musings

SEPTEMBER 1, 2014

Think of that challenge like competing for limited venture capital. As evidence that it does work, TechCrunch recently aggregated the combined valuation of YCombinator graduates at $14.4 In a recent cycle, YCombinator had a thousand applicants for thirty slots, and several of these fell out before completion.

Incubator 247

Incubator Silicon Valley Startup Small Business Administration 247

Startup Professionals Musings

OCTOBER 13, 2010

It wouldn’t work anyway, since your valuation at that stage would be less than the funding, meaning you would have to give away all ownership for the money. Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding sources specialize in certain growth stages.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231