article thumbnail

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. Other lender tricks adding to the true cost.

article thumbnail

What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

Vendor financing – When you start to win business – let’s say as an implementation arm for tech / business products or as an ad sales team for large tech / media businesses – you can often get financed in a small way by your vendors who are all to happy to have a bigger ecosystem of implementation houses.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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

Campus Entrepreneurship

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

article thumbnail

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. It is important to calculate the true cost of such money.

article thumbnail

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. Described by BusinessWeek as a “world conquering. collaborate with over 250,000 entrepreneurs in 95 countries.

Coder 75
article thumbnail

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

Startup Company Lawyer

In a typical venture financing, there is a voting agreement that governs how specific board seats will be filled. In angel financings, I typically eliminate the voting agreement anyway and simply have a closing condition that the board consist of certain persons. Voting agreement. Investor pressure.

Finance 70
article thumbnail

Interview with Sramana Mitra on 1M/1M Program

Life Beyond Code

He has veered away from angel financing, and has decided to bootstrap with customer money, and preserve equity ownership, foregoing any immediate dilution related to financing. At 1/12th the cost, 1M/1M provides far more value. Of 1M/1M he says, “The value of your program is amazing.