VC Seed Funding Example: Trada

Feld Thoughts

My partner Seth Levine has a detailed post up today titled Trada – from the beginning that describes the creation and financing of Trada. Instead we quickly put our heads together about a financing (we like to say it was over beers, but the truth is more mundane – we hammered out the details in a 10 minute conversation in the conference room of the Foundry office). A few strategic angels were added to this round.

TabbedOut Adds $3.7M

Austin Startup

While we have not seen the SEC filing, or an official statement from TabbedOut, TechCrunch is reporting today that TabbedOut has raised an additional $3.7M, perhaps as an extension of their Series A financing. Back in October we wrote about their $2M Series A, which added to their angel financing of $750K brought their total funding to $2.8M. Now with this additional $3.7M, their total financing is up to $6.5M.

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The Microsoft Accelerator, round 2!

David Cohen

Most of those companies from the Kinect program are doing great, and many have gone on to raise venture capital or angel financing since the program ended. The Microsoft Accelerator for Kinect concluded earlier this year. The Microsoft Accelerator is “ powered by TechStars “, which means that TechStars operates it on Microsoft’s behalf.

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An economics lesson for growing companies

Berkonomics

Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise. There are asset-based lenders of every size willing to take more risk and finance the growth of young companies without requiring compensating balances. Catching up from past insights.

Honest Tea TeaEO Seth Goldman: Dos and Don’ts of Raising Money From Angels

Campus Entrepreneurship

The piece offers his thoughts on Angel investing and how Honest Tea approached it. From the Inc piece, The Dos and Dont’s of Raising Money From Angels. First round of angel financing ($500,000). Second round of Angel financing ($1.2 Goldman explains the costs and benefits of Angel investors based on his experience and by doing so adds more life to the business plan. (I

[U.S.] Small Businesses Look To Hire In The Next Six Months: Pepperdine

YoungUpstarts

Small businesses should be a top consideration as the President and other legislators seek to jump start job creation,” says John Paglia, lead researcher of the Pepperdine Private Capital Markets Project and associate professor of finance at Pepperdine University’s Graziadio School of Business and Management. According to a new Pepperdine University Graziadio School study, 40.7% of small businesses say they will hire in the next six months as compared to 38.1%

Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats. Since 2009 I have been counseling people to offer discounts to the first angel investors. There is simply no reason for the first angel to write you a check until you have the whole round secure, which is why people herd cats. Almost every wealthy angel wants a deal.

The Importance of Robust Angel Ecosystems

VC Adventure

Earlier this week I gave the keynote address at the Colorado Angel Capital Summit. While the audience was Colorado focused, the overall message I delivered about the angel ecosystem is very relevant to all entrepreneurial communities. The overall trend around angel investing is a pretty interesting one. I’ve talked about this trend before – specifically the acceleration of angel investing in 2011-2014. Successful angel investing requires diversification.

Answers to the 5 Most Common Angel Investor Questions

Growthink Blog

On Wikipedia, I found the word "angel" defined as "a supernatural being or spirit, often depicted in humanoid form with feathered wings on their backs and halos around their heads." While this might depict an "angel," it certainly is a far cry from the definition of an "angel investor." Below I define exactly what an "angel investor" is along with answers to the other most common angel investor questions. What is An Angel Investor?

How to Find the Perfect Startup Job: Part I "Start with 'When'"

Genuine VC

Much of the VC blogosphere commentary about startups covers venture and angel financing with advice focused on company founders. The primary dimension on which startups differ is stage: two guys in a garage is definitely a startup, so is a thirty person company growing with a second round of financing, and so is a 250 person company preparing for an IPO.

Startup Strategy Roundtable: Top 10 Tech Trends To Watch

ReadWriteStart

The company is profitable and has so far raised only $400,000 in friends and family and angel financing. At this point, he can grow organically and leverage channel partners and other creative modes of non-equity financing and preserve equity as much as possible. We started this week's roundtable with a discussion of the top 10 tech trends to watch for the upcoming decade.

Families Help Nurture Vanderbilt Entrepreneurs

Campus Entrepreneurship

Mitra points out that the free rent may have been worth up to $20,000 in angel financing? Great piece from Sramana Mitra highlighting two entrepreneurs that launched an educational software firm, Archipelago Learning, out of Vanderbilt. Mitra highlights the importance of supportive friends and families as founders, especially young ones, begin the process of building a sustainable business.

The most important person on the startup team

Berkonomics

500 CEO, serial entrepreneur and the founder of New York Angels. founder and CEO of Gust, the angel financing platform used by over 50,000. accredited investors in 1,000 angel groups and venture capital funds to. Coding, design, production, sales, finance, operations, marketing, and the like are all execution skills; and without great execution, success will be very hard to come by. By David S. Described by BusinessWeek as a “world conquering.

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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

It’s nearly impossible to get a services company financed by VCs. So pervasive has this thinking become that on several occasions startup companies with profitable & fast growing services businesses have come to me wanting to show me the product businesses they created internally to see whether they would be financeable or whether they might be able to create “spin outs&# that could be financed. This post originally appeared on TechCrunch.

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Crowdfunding Sites Offer 5 Hidden Benefits

Growthink Blog

To start, Crowdfunding is the process of getting a group of regular individuals (versus banks, venture capitalists or angel investors) to collectively fund your venture. Raising money from Crowdfunding is so much easier and faster than traditional sources of funding like venture capital and angel financing. Crowdfunding is the latest and greatest way to raise money for a new business, or even a new product or service you want to launch.

Why Capital Factory?

Austin Startup

Today the company has successfully raised angel financing, and they are investing in faster growth and adoption of their family gaming platform. The application deadline for Austin-based Capital Factory ’s 2011 program is Sunday , and momentum for tech startups and entrepreneurship in general are riding high as the SXSW Interactive festival wraps up.

The 5 Key Stages of Equity Funding

Growthink Blog

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. As Steven Covey said, you'll want to "begin with the end in mind" and not make arrangements with your angel and/or early investors that will complicate later stages of funding.

Startup Capital: Feast or Famine?

Gust

Sources of Capital for Startup Entrepreneurs – The primary sources of cash for new companies are (1) self (the entrepreneurs’ resources), (2) government grants, (3) friends and family, (4) angel investors and Super Angels , (5) venture capitalists and (6) strategic investors. Let’s take a closer look at trends in government grants, angel investment and venture capital financings. It appears to me that there are about 100 Super Angels in the US.

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Who, When, and How Much? A Quick Introduction to Startup Financing

Gust

For a first time entrepreneur trying to figure out the arcane world of startup financing, it can be very confusing to understand the roles that different types of investors play in funding promising companies, as well as the point in a company’s life at which they enter the stage. It is not unusual to hear people refer to “angels-and-vcs” in a single breath, even though those are two very distinct groups with different attributes.

Angel Funding Advice

Both Sides of the Table

Last night I attended a DealMaker Media (whom I love because they always host such great discussions) panel on raising angel money moderated by Dan Gould and with panelists Rob Hayes (First Round Capital, more seed or A round than angel), Scot Sangster (with OrganicStartup and the best spokesperson for Tech Coast Angels that I have met to date), Tom McInerney (TGM) and Jarl Mohn (who invests on his own “account&# and whose track record is truly humbling).

Growth requires a different kind of capital.

Berkonomics

Venture or angel-financed companies with plenty of working capital sometimes are immune to this need for some time into their growth, but at some point it will become clear that the cheapest form of finance is not equity in a growing enterprise. If the equity value of a company is growing at the same rate as the company, say 40% per year, almost any form of debt financing may be preferable as a way of preventing further dilution from issuing additional equity.

Bras Meet Software at Babson

Campus Entrepreneurship

The company is about to close a $500,000 – $700,000 round of angel financing. via Where Bras Meet Software: Zyrra Raises Money From Jess McLear, Jean Hammond, & Local Angels For Its Bra Industry “Revolution” | Xconomy. Tags: American Exceptionalism Business Plans & Competitions Campus Eco-System Entrepreneur Profiles angel investing Babson MBA Christi Andersen custom bras Golden Seeds layered financing MassChallenge Zyrra

Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

There has been no shortage of controversy and criticism around the convertible note, a popular investing vehicle that’s used by seed stage and angel investors. As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. Ressi estimates that the debt note now accounts for over 50% of all angel and early stage deals. Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture. Social. GreenTech.

A "Rich-vs.-King" Approach to Term Sheet Negotiations

Altgate

Share and Enjoy: This entry was posted in Entrepreneurship , Venture Capital and tagged angel financing , entrepreneur , founder , fund raising , negotiation , startup , term sheet , venture capital. @altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Why Don’t Universities Teach Sales? Migrating…lots of broken stuff → A “Rich-vs.-King&#

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. This is the norm for West Coast deals, but it’s often the case in dealing with East Coast investors (more commonly for VC financing rounds rather than angel seed rounds) that the lead investor wants its lawyers to draft the documents.

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). Series Seed Financing Documents (by Fenwick & West). This post assumes that you have a basic understanding of Series A financing terms.

Interview with Sramana Mitra on 1M/1M Program

Rajesh Setty

Through this journey, we have raised the visibility of fundamental issues like the causes of exorbitantly high infant entrepreneur mortality, and alerted the entrepreneur community with a simple observation: Entrepreneurship = (Customer + Revenue + Profits); Financing is Optional. This, of course, doesn’t mean that we discourage entrepreneurs to seek financing. 1M/1M Program has a bold mission.

ProfessorVC: How much is enough?

Professor VC

Financing, that is.I One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. I am no longer an insider, so dont have any view into current financials, but do know that total financing is now 10X the original plan and at the current accelerating growth rate, revenues will still not hit that $185M until 2012 or 2013, so double the time. As I said up front, I have mixed emotions about the financing.

Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM

ProfessorVC: Baby's All Grown Up

Professor VC

Not to worry, I was busy working on closing the Series B financing for iControl Networks. I started working with the founders of iControl at the concept stage, prior to the first $100K of angel financing. The CEO and I ended up funding the company ourselves until we were able to scrape together a larger angel round. Labels: CFO , home security , M and A , venture capital , venture financing. Negotiating an Angel Deal in your PJ's. Touched by an Angel.

Startup Tools

steveblank.com

Grasshopper – virtual phone system Ringio – cloud phone system RingCentral – cloud based phone system InDinero – easy business finance software Expensify – billing, expenses, receipts Resumator – applicant tracking and social recruiting RecruiterBox – recruitment software, applicant tracking ActiveInterview – Video interviewing BambooHR - Employee Records, Benefit Information, Payroll Data, etc.