Startup Professionals Musings

DECEMBER 6, 2019

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. According to a well-researched Motly Fool report, the challenge is very real, since around half of all businesses fail in the first five years.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

FEBRUARY 10, 2023

While I recognize that there continues to be a shortage of venture capital for new entrepreneurs, compared to the demand, don’t succumb to the temptation to take funds from investors that you are not totally comfortable with.

Technical Review 345

Technical Review Due Diligence Term Sheet Offshore 345

Startup Professionals Musings

OCTOBER 15, 2023

If you are approaching a recognized venture capital group, or even an accredited angel investor, a non-disclosure agreement is counter-productive. Here are the key considerations from my perspective: Dealing with known or trusted investors and advisors.

Non-disclosure Agreement 254

Non-disclosure Agreement Technical Review Due Diligence Angel Investor 254

Startup Professionals Musings

FEBRUARY 29, 2020

Maintaining your team’s passion and freedom to focus first on innovating for customers are only a couple of the reasons for thinking hard before you seek money from crowdfunding, angel investors, venture capital organizations, or attempt to qualify for a public stock offering. Investors will become the toughest boss you ever had.

Bootstrapping 310

Bootstrapping Advisory Board Venture Capital Startup 310

Startup Professionals Musings

JUNE 2, 2021

That means that many companies are now forgoing the rush to go public (IPO), in favor of major equity investments from specialized venture capital funds, such as Japan’s SoftBank. These tolerate negative cash flows for growth. These have the vision and the resources to fund long-term digital success.

Software Review 355

Software Review Algorithm Global IPO 355

Startup Professionals Musings

OCTOBER 19, 2022

Yet as I mentor entrepreneurs around the country, crowdfunding still seems to be one of the least understood approaches to startup funding, with more myths than accredited angels and professional venture capital investors combined.

Accredited Investor 352

Accredited Investor Startup SEC Equity 352

Startup Professionals Musings

JUNE 11, 2022

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. This could work to get you legal or accounting services, but won’t get you cash to pay employee salaries.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

Startup Professionals Musings

FEBRUARY 19, 2011

And for a select few entrepreneurs, they are able to go out and raise the venture capital they need and make their dreams a reality. So, what it is about these select few entrepreneurs, and what do they do that makes them successful in raising venture capital? And then go back to venture capitalists later.

Venture Capital 234

Venture Capital Angel Investor Cofounder Entrepreneur 234

Startup Professionals Musings

OCTOBER 15, 2022

Finally I realized that venture capital and angel investors are actually humans, despite some views to the contrary. As a startup mentor, I’m always amazed that some entrepreneurs seem to be an immediate hit with investors, while others struggle to get any attention at all.

Intellectual Property 278

Intellectual Property Angel Investor Early Stage Venture Capital 278

Startup Professionals Musings

OCTOBER 19, 2010

billion invested during the same three-month period in 2009, according to the National Venture Capital Association (NVCA). Overall, venture capital investment fell in the United States last year but rose elsewhere. Tags: entrepreneur startups investors venture capital business. Marty Zwilling.

Venture Capital 225

Venture Capital Silicon Valley Startup United States 225

Startup Professionals Musings

APRIL 24, 2011

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. Back to VCs, Silicon Valley venture capital firms are still the most active. So what can you do to get to the head of the venture capital investment queue? Overall, investors put $7.5 That represents a $1.5

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

Startup Professionals Musings

JUNE 29, 2022

If you need venture capital, maybe you need to spend more time in Silicon Valley or Boston. Fortunately, you can develop this skill. Location and luck: right place at the right time. I’m a proponent of the old adage that you make your own luck in business.

Silicon Valley 325

Silicon Valley Angel Investor Technical Review Boston 325

Startup Professionals Musings

FEBRUARY 25, 2023

According to National Venture Capital Association statistics , only 16% of venture-backed startups recently used this alternative, due to high liability concerns, demanding shareholders, and high costs. IPO – public company initial public stock offering.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

AUGUST 1, 2022

We have all seen examples of new ventures that fail , despite large infusions of venture capital, and high-potential new technologies. I have found that no amount of personal or investor money will create or substitute for self-leadership and business leadership.

Leadership 285

Leadership Reputation Venture Capital Global 285

Startup Professionals Musings

OCTOBER 8, 2023

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Their realm fits between crowdfunding and venture capital sources. contributes more than $25 billion to fund 70,000 startups every year.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

Startup Professionals Musings

FEBRUARY 1, 2021

If you are approaching a recognized venture capital group, or even an accredited angel investor, a non-disclosure agreement is counter-productive. Here are the key considerations from my perspective: Dealing with known or trusted investors and advisors.

Non-disclosure Agreement 399

Non-disclosure Agreement Technical Review Due Diligence Angel Investor 399

Startup Professionals Musings

AUGUST 3, 2010

But until now, I’ve never seen a study of exactly how that plays out for startup founders for current venture-backed companies, specifically: race, age, experience and the number of founders per company. California (Silicon Valley), New York (NYC), and Massachusetts (Boston) are the places to be in the US for venture capital attention.

Venture Capital 221

Venture Capital Massachusetts California New York 221

Startup Professionals Musings

APRIL 4, 2022

The bad news is that the valley’s depth before real revenue, considering the high costs of marketing, manufacturing, and sales, can still add up to $500K, on up to $1 million or more, before you will be attractive to angel investors or venture capital. It’s the time when you create tremendous value out of nothing.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

NOVEMBER 7, 2021

No real investor or venture capital firm asks for money from the company they are intending to invest in. Here someone who is not a registered financial broker contacts you on the Internet, tells you about all the people they know with money, then turns around to ask for a “retainer” or fee to cover their time and efforts.

Technical Review 371

Technical Review Due Diligence Non-disclosure Agreement Term Sheet 371

Startup Professionals Musings

FEBRUARY 19, 2013

According to a Gompers and Lerner study, the challenge is very real, with 90% of new ventures that don't attract investors failing within the first three years. My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JUNE 2, 2013

Since Angel investors put money into 60 times as many companies as venture capital funds, according to Wikipedia, early-stage startups need to focus first on the key thresholds that drive these investment decisions. The same hold true for venture capital investors. Marty Zwilling.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Startup Professionals Musings

MAY 25, 2020

According to National Venture Capital Association statistics , only 16% of venture-backed startups recently used this alternative, due to high liability concerns, demanding shareholders, and high costs. IPO – public company initial public stock offering.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

MAY 11, 2020

While I recognize that there continues to be a shortage of venture capital for new entrepreneurs, compared to the demand, don’t succumb to the temptation to take funds from investors that you are not totally comfortable with.

Technical Review 310

Technical Review Due Diligence Term Sheet Offshore 310

Startup Professionals Musings

MAY 5, 2010

Last week at an angel investor forum I was privileged to meet Stephanie Spong, who is a Principal with EPIC Ventures, an increasingly rare early stage VC firm. Stephanie: I am a venture capitalist currently based out of Santa Fe, New Mexico, with EPIC Ventures. Stephanie: I love building companies. Marty Zwilling.

Venture Capital 164

Venture Capital New Mexico Mexico Early Stage 164

Startup Professionals Musings

JANUARY 13, 2020

Finally I realized that venture capital and angel investors are actually humans, despite some views to the contrary. As a startup mentor, I’m always amazed that some entrepreneurs seem to be an immediate hit with investors, while others struggle to get any attention at all.

Intellectual Property 316

Intellectual Property Angel Investor Early Stage Venture Capital 316

Startup Professionals Musings

JANUARY 20, 2020

Yet as I mentor entrepreneurs around the country, it still seems to be one of the least understood approaches to startup funding, with more myths than accredited angels and professional venture capital investors combined.

Accredited Investor 324

Accredited Investor Entrepreneur SEC Equity 324

Startup Professionals Musings

OCTOBER 17, 2022

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 and the recent pandemic: Venture capital funds are regaining momentum.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

JULY 14, 2014

According to a Gompers and Lerner study, the challenge is very real, with a majority of new ventures that don''t attract investors failing within the first three years. My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

OCTOBER 30, 2017

One of the most common complaints I hear from new business owners and startups is about the pain and difficulty raising capital. The “venture capital” model is the only option they know, where they feel they get no mercy, giving up equity and control.

Technical Review 220

Technical Review Accredited Investor Due Diligence Equity 220

Startup Professionals Musings

JANUARY 12, 2018

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. According to a recent Motly Fool report, the challenge is very real, since around half of all businesses fail in the first five years.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Startup Professionals Musings

JUNE 26, 2013

It is no secret that the world of venture capital (VCs) was turned upside down by the recent Recession, and many other changes in the marketplace. I would conclude that the genesis of this trend comes from several forces, including the following: Less investment capital available.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Startup Professionals Musings

APRIL 14, 2010

Back to VCs, Silicon Valley venture capital firms are still the most active. For the 1st quarter, Healthcare remained the largest single sector for venture money. So what can you do to get to the head of the venture capital investment queue? Tags: startups venture capital business. Marty Zwilling.

Venture Capital 123

Venture Capital Elevator Pitch Silicon Valley Massachusetts 123

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

SEPTEMBER 8, 2019

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. This could work to get you legal or accounting services, but won’t get you cash to pay employee salaries.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

Startup Professionals Musings

SEPTEMBER 25, 2023

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. Their only recourse is that first tier of investors, fondly called Friends, Family and Fools.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

JUNE 25, 2012

Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. If you go for venture capital, don’t expect a quick fix, so prepare to spend at least six months searching for and closing the deal.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

MAY 29, 2021

Don’t look for formal venture capital levels of funding, but certainly early-stage Kaufmann grants, incubators, and entrepreneurship incentives are available from endowments and state funds. Collaborative efforts with local companies, like Siemens Venture Capital, are available for certain technology and focus areas.

Arizona 432

Arizona Phoenix Intellectual Property Incubator 432