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From Accelerators to Venture Capital: What is best for your startup?

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The post From Accelerators to Venture Capital: What is best for your startup? billion in funding and created over 6,500 jobs.

6 Steps to Raising Venture Capital in 6 Months

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A woman you don’t know tells you that she’s going to run a marathon of 7-minute miles. She’s never run a long distance race before. And so you do.

Valuations 101: The Venture Capital Method

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The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. The Venture Capital Method is often used as one such method.

Right Entrepreneurs In The Right Place Get Funded

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Obviously, a key factor is always the state of the economy and the mood of the venture capital community. No surprises here.

Why are some venture capital firms not funding women?

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The facile answer to this assumptive question is “because some women are not seeking funding from venture capital firms” But there is actually quite a bit of truth in both statements. Invested Interests Astia entrepreneurs funding investors LATISM venture capital firms women

7 Questions Test Entrepreneur Focus Before Funding

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Will you be able to persevere and build your new venture into a success? Image via Entrepreneur.com. Do you have a viable plan? Ask around.

How do venture capital firms make money by investing in startups?

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The venture capital fund itself makes money… …by investing early in a startup company’s life, when success is not at all assured. In exchange for investing capital to help the company grow, the fund receives an ownership interest in the company. This is the money that is invested into the startups.

Which books would you recommend to a VC analyst-associate?

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The Business of Venture Capital. Raising Venture Capital for the Serious Entrepreneur. Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms. Venture Deals. Be Smarter Than Your Lawyer and Venture Capitalist. Mastering the VC Game. Term Sheets & Valuations.

10 Startup Shortcuts That Will Be Back To Haunt You

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Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Bad Notes on VC

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Me: So, you raised venture capital? have never come across a sophisticated A, B or C round venture capitalist who thinks convertible notes are a smart move for entrepreneur or investor. This week. On the phone …. Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. Me: With a cap?

Valuations 101: Scorecard Valuation Methodology

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Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. – Need venture capital. million. RANGE.

Why Startups Face Increasing Competition In Raising Series As And Bs

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By Tomasz Tunguz , Partner at Redpoint Ventures. Despite the noisy data, it’s reasonable to conclude the financing market has become more competitive, driven by an increase in the total number of startups raising seed capital and a relatively constant inflow of capital into venture capital.

Convertible Debt, Priced Equity Rounds and Deal Timing

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Invested Interests angel investment convertible debt convertible note deal terms due diligence financials fundraising priced equity priced rounds tactics valuation valuations VCs venture capital

2011 Valuation Survey of North American Angel Groups

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Speaking with many angel leaders , I believe we have identified several possible explanations for group-to-group variations: 1) Clearly, startup ventures in some business verticals command high pre-money valuations that others.  Invested Interests angel investment fundraising pitching venture capitalCurrent Average. Location.

Angel Investors Do Make Money, Data Shows 2.5x Returns Overall

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Conventional wisdom dictated that they made reckless investments in very early-stage ventures mostly doomed to fail. So which is it?

Do venture capital firms or private equity funds offer debt financing for startups?

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For venture capital, this is typically ten  times  the invested capital, and those returns can only be achieved through equity appreciation, not debt service. Invested Interests debt financing private equity funds startup VCs venture capital firms That would typically be done  before  you start the company.

Crowd Funding – A Critique for Entrepreneurs and Investors

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But, in the US, only wealthy accredited investors * have been allowed by the Securities and Exchange Commission (SEC) to invest in entrepreneurs and their startup companies (without extensive disclosure of the business plan and risks inherent to such new ventures).  Public to invest in startup ventures and help the US economy create new jobs. 

The 10 Best Sources of Cash to Start Your Business

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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. large percentage of startups never apply to either. Friends and family.

What are the biggest global events for Venture Capitalists and Business Angels where they can learn about their own business?

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There are surprisingly few such conferences, for the very good reason that there are actually relatively few such people (venture capitalists and ‘professional’ angel investors) to attend them! Angel Capital Association (US) Annual Summit. Venture Capitalists. EBAN Annual Congress. NACO National Angel Summit.

How long does it take for investors to approve the idea and to grant the necessary investment?

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The question is based on a misunderstanding of how venture capital investment works. Now, with that as background, it will typically take one to three months to negotiate and diligence a venture investment, if the company manages to get one at all. First of all,  VC funds do not invest in ideas. Only companies get funded.

Nuts & Bolts of Intellectual Property for New Startups

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Industry Experts 101 advisors entrepreneurs entrepreneurship execution intellectual property IP legal startups team venture capitalSo you’ve chosen a name for your startup, product, or both. Tech startups are at the other extreme. Most of our early-stage startup clients fit this description. Intellectual property.

Knowledge Is Power: Convertible Note Financing Terms, Part II

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This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.  In fact, there is a recent variation on this theme.  At least one well-known Silicon Valley venture accelerator is using a document referred to as a “ convertible security ” rather than “convertible promissory note.” 

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

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If these terms sound onerous and lopsided, it’s because they are. 

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What are the best innovations to come out of the financial industry in recent times?

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From a completely biased perspective, I’d nominate the nascent and not yet completely visible rise of online equity investing platforms. While  Gust  is generally flying under the radar, and currently accounts for an infinitesimally tiny fraction of the marketplace, the actual numbers may be a bit surprising.

What is the process of a (new) VC firm raising its first fund?

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Confessions Of A VC Who Raised Money During Financial Armageddon. original post can be found on Quora @ [link] *. Invested Interests Alan patricof first fund Greycroft Partners VC firm

IPOs, M&As, Liquidity, & You. (the entrepreneur)

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In the “good old days,” angels invested in seed-stage startups and teed up promising companies for subsequent venture capital financing. If the company was successful, this quickly led to an IPO – a very happy ending for the entrepreneur, the angels, and the venture capitalists. Raising venture capital may lead to a huge exit.

The right investors for the right stage

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Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. This is the realm of venture capital professional investors, with funding amounts of $1-10 million, often referred to as the “A-round,” or first institutional funding. Early or embryonic stage. Exit stage.

What is the maximum amount of money a pre-revenue mobile Internet startup can expect to raise from the VCs?

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To start with, a pre-revenue mobile company cannot  expect  to raise  anything  from “the VCs” Venture capital funds invest in only  one out of every 400  companies seeking funding, so the odds of your particular startup getting funded are astronomically against you. Good luck with your venture!

What’s actually required to start or close a funding round?

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single venture capital fund putting in the full amount as Series A Convertible Preferred investment. The simple fact of the market is that there are many, many more entrepreneurs seeking capital than there are investors seeking to fund them. 25 individual angel investors funding a startup on a convertible note.

What are the most valuable recommendations in order to raise money from VCs connected via Gust?

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Create your Gust profile to show off your venture in the best possible light. One of the primary ones is the referral source. Trust me.

Scaling a Business by Cloning Yourself is Tough

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Another reality is that angel investors and venture capital groups almost never invest in a services-only company.  Make it happen.

What tools can I use to manage relationships with investors?

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It’s the official collaboration tool of the Angel Capital Association (and the equivalent national angel investor federations in 20 other countries.) It’s also used by over 300 venture capital funds. Needless to say, the author of this post is completely biased, as I am the Founder & CEO of Gust ).

How do US venture capital firms view an entrepreneur who decides to go for funding to the US with a business plan, and then will need a visa?

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The most important is that venture capital firms simply do  not  fund business plans. But I wish you luck with your venture! Invested Interests business plan entrepreneurs startups US venture capital firms visa The disappointing fact is that this is a highly, highly unlikely scenario, for several reasons.

Valuation Methods 101

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Detailed descriptions will be published over the next few weeks: The Scorecard Method: This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.   The Venture Capital Method.

5 Good Reasons Not to Seek Angel Investment

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Invested Interests angel investment fundraising startups venture capitalAssume you have the right factors to get angel investment: experienced team, good product-market fit, growth potential, defensibility, and a reasonable shot at a successful exit. Have you asked yourself whether that’s what you really want? Maybe you don’t. 2.

Make Sure Your Startup Domain is Investor Friendly

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Generally, the same criteria applies to venture capital investors, although they invest other people’s money, at a later stage, in larger amounts.

Probable and Improbable Lobbying Wins: The 1,000-stockholder Rule

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SOPA would disproportionately alter the risk profile for new startups, which are thinly capitalized compared to the giants like Google and Facebook.  In 2011, virtually every new consumer Internet startup incorporates a social/UGC element.  Facebook, which did not exist in 2003, is now valued at nearly $100 billion. 

Is it possible for an idea to be funded by a VC?

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So what VCs fund is  execution. Invested Interests execution funding ideas VCs

Limiting the Number of Shareholders in Private Companies

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But, this SEC limit has created some problems for these high-tech phenoms, both in raising additional capital and in private sales through secondary markets in which early investors resell shares to a large number of smaller US buyers. The U.S. Raising $1000 each from 1000 investors would surely seem to violate current SEC regulations.

What are some ways you can keep track of startups you are evaluating/diligencing/investing in?

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This is obviously a softball question that I’ve been Asked to Answer, as I’m the Founder/CEO of Gust.