Startup Professionals Musings

APRIL 17, 2022

As a long-time business advisor and angel investor, I’m a believer that “two heads are better than one” in building a new business. The challenge is to recognize and recruit that ideal partner match early with minimal cost and risk. In fact, I would broaden the definition of partner from co-founder to “business partner.”

Partner 385

Partner Software Review CTO Hire Cofounder 385

Startup Professionals Musings

FEBRUARY 12, 2023

Every entrepreneur I know has their favorite excuse for a previous failure – an investor backed out, the economy took a downturn, or a supplier delivered bad quality. It’s important to learn from your own mistakes, but it’s even smarter to learn from someone else’s mistakes, without paying their high price in time lost, cost, and pain.

Intellectual Property 312

Intellectual Property Startup Angel Investor Viral 312

Startup Professionals Musings

APRIL 4, 2022

The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. That includes estimating the money required to get to the revenue stage, and saving money to cover costs before you jump off the cliff.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

MAY 14, 2023

Things will cost more than you expect. Always add 20 percent to your best estimate of funding requirements when approaching investors. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. Buffer your projected resource requirements.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

MAY 17, 2020

Every entrepreneur I know has their favorite excuse for a previous failure – an investor backed out, the economy took a downturn, or a supplier delivered bad quality. It’s important to learn from your own mistakes, but it’s even smarter to learn from someone else’s mistakes, without paying their high price in time lost, cost, and pain.

Intellectual Property 436

Intellectual Property Angel Investor Viral Distribution 436

Startup Professionals Musings

FEBRUARY 8, 2021

In my experience as an angel investor for new startups, I’m always surprised by how many entrepreneurs are looking for funding without outside advisors. Especially if you are a first-time business owner, the payback for this initiative is well worth the effort and cost.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

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. That includes estimating the money required to get to the revenue stage, and saving money to cover costs before you jump off the cliff.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

FEBRUARY 14, 2022

Don’t forget a viable financial model of costs, margins, customer acquisition, and break-even. At the same time, more entrepreneurs are jumping into the fray, and less money is available from investors. In my view, savvy “super angel” investors such as Mike Maples, Jr. , It’s time for a new startup model.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

AUGUST 13, 2022

I still have to tell some entrepreneurs that even with the best idea, they have to move to Silicon Valley to find the investors they need, or they need to move to the U.S. get the attention of the market they choose. It’s very important.

Las Vegas 309

Las Vegas Silicon Valley Arizona Montana 309

Startup Professionals Musings

OCTOBER 15, 2022

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. Finally I realized that venture capital and angel investors are actually humans, despite some views to the contrary. Already set and achieved initial milestones.

Intellectual Property 278

Intellectual Property Angel Investor Early Stage Venture Capital 278

Startup Professionals Musings

JULY 13, 2022

In this context, connecting with other complementary brands will help you share costs, as well as audiences across your industry. You need to evaluate the tradeoffs of getting investment capital from angel investors and crowdsourcing. Be prepared to give away to participants something memorable that they actually want.

Technical Review 355

Technical Review Social Media Channel Flash 355

Up and Running

MARCH 31, 2021

The hardest investment decision an Angel investor has to make is finding the company. With over one-half of small businesses closing their doors this year or last year, there is now far less competition for startups to gain an investor’s attention. Then, go and write that business plan and find an Angel investment group.

Small Business 116

Small Business Angel Investor Technical Review Elevator Pitch 116

Startup Professionals Musings

DECEMBER 18, 2022

If you are not in that rare category of known and proven entrepreneurs, you should avoid the following list of my top ten turnoffs that I have personally experienced as an angel investor. Investors are buying part of the business, not the product or service. Excuse the typos and cleanup -- I’ve been too busy to finalize.”

Business Plan 273

Business Plan Technical Review Angel Investor Social Media 273

Startup Professionals Musings

AUGUST 19, 2020

Things will cost more than you expect. Always add 20 percent to your best estimate of funding requirements when approaching investors. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. Buffer your projected resource requirements.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

JUNE 30, 2019

The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. That includes estimating the money required to get to the revenue stage, and saving money to cover costs before you jump off the cliff.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

Startup Professionals Musings

DECEMBER 24, 2012

Every new startup I know dreams of being funded early by one of the 318,000 active Angel investors in the USA alone. Most of these investors are members of Angel groups that have a rigorous filtering and screening process, to select the top 3% and most fundable proposals. Build an investor presentation and summary.

Angel Investor 260

Angel Investor Intellectual Property Elevator Pitch Angel Groups 260

Startup Professionals Musings

JANUARY 13, 2020

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. Finally I realized that venture capital and angel investors are actually humans, despite some views to the contrary. Already set and achieved initial milestones.

Intellectual Property 316

Intellectual Property Angel Investor Early Stage Venture Capital 316

Startup Professionals Musings

JULY 15, 2019

As a long-time business advisor and angel investor, I’m a believer that “two heads are better than one” in building a new business. The challenge is to recognize and recruit that ideal partner match early with minimal cost and risk. In fact, I would broaden the definition of partner from co-founder to “business partner.”

Cofounder 221

Cofounder Software Review CTO Hire Founder 221

Startup Professionals Musings

DECEMBER 6, 2014

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. Finally I realized that Venture Capital and Angel investors are actually humans, despite some views to the contrary. Already set and achieved initial milestones.

Angel Investor 268

Angel Investor Intellectual Property Entrepreneur Early Stage 268

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

Berkonomics

FEBRUARY 8, 2024

After friends and family… Once a company founder has tapped the funds available from his or her resources and from friends and family, if the company needs more cash for growth, the most obvious next step is to look for money from angel investors and venture capitalists, typically in the $300,000 TO $3,000,000 range.

Cost 62

Cost Covenant Angel Groups Angel Investor 62

Startup Professionals Musings

APRIL 22, 2012

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels.

Angel Investor 281

Angel Investor Term Sheet Entrepreneur Due Diligence 281

YoungUpstarts

AUGUST 17, 2020

Many companies seek angel investors, venture capital and even family and friends’ money when they’re planning to start a company. an entrepreneur should have about 6 months worth of fixed costs on hand at the beginning. Financial intelligence is important to anyone starting a company. office space, legal fees, payroll, etc.)

Finance 217

Finance Forecast Balance Sheet Angel Investor 217

Berkonomics

OCTOBER 5, 2023

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. Ignoring the cost of product for a moment to make a point, saving a month’s fixed overhead by making processes more efficient, could easily double profits for the year.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

YoungUpstarts

JANUARY 11, 2021

If your chart of accounts isn’t structured in the right way, you may end up presenting to board members or investors with financials that aren’t GAAP-compliant or taking weeks to provide the right reports, both of which will give the impression that you don’t have your corporate side in order. If not, your chart of accounts needs improvement.

Small Business 208

Small Business Startup Cofounder Vertical 208

SoCal CTO

MARCH 1, 2010

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs , February 2, 2010 Looks at the critical equation around customer acquisition cost vs. customer lifetime value similar to what I discussed in Startup Metrics but in more depth. Jason looks at the issues around "sunk cost." Great stuff.

Acquisition 150

Acquisition Cofounder Technical Cofounder Cost 150

Startup Professionals Musings

MARCH 21, 2020

If you are not in that rare category of known and proven entrepreneurs, you should avoid the following list of my top ten turnoffs that I have personally experienced as an angel investor. Investors are buying part of the business, not the product or service. Excuse the typos and cleanup -- I’ve been too busy to finalize.”

Technical Review 310

Technical Review Angel Investor Business Plan Social Media 310

Startup Professionals Musings

NOVEMBER 9, 2019

I still have to tell some entrepreneurs that even with the best idea, they have to move to Silicon Valley to find the investors they need, or they need to move to the U.S. get the attention of the market they choose. It’s very important.

Las Vegas 243

Las Vegas Silicon Valley Arizona Montana 243

Startup Professionals Musings

DECEMBER 24, 2018

As a startup advisor and angel investor, I tend to focus on the much longer list of ways your startup can fail, based on my own experience and inside knowledge from peers who you will never see highlighted on the Internet. Calculate your projected costs, and double the amount.

Angel Investor 249

Angel Investor Cofounder Finance Operations 249

Startup Professionals Musings

SEPTEMBER 7, 2018

This process costs money, which professional investors are not willing to contribute, since their interest is in scaling a proven product and business model into a growth business. Investors want potential for a large and timely return, with reduced risk. Detailed grant accounting requirements.

Early Stage 225

Early Stage SBIR Technical Review Seed Stage 225

Gust

DECEMBER 16, 2012

ABC Shark Tank Angels via Elite Daily. Every new startup I know dreams of being funded early by one of the 318,000 active Angel investors in the USA alone. Build an investor presentation and summary. Like the business plan, a financial model is required as much for your own use as to impress Angel investors.

Angel Investor 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

Startup Professionals Musings

JULY 14, 2014

The problem is that professional investors (Angels and Venture Capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. That includes estimating the money required to get to the revenue stage, and saving money to cover costs before you jump off the cliff.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

OCTOBER 2, 2023

Angel investors and venture capitalists are looking for startups with real products and a proven business model, ready to scale. Even for mature startups, there is always a need for further product development and research to compete and diversify the business, and investors understand this.

Angel Investor 256

Angel Investor Early Stage Incubator Government 256

Startup Professionals Musings

MAY 15, 2019

Don’t forget a viable financial model of costs, margins, customer acquisition, and break-even. At the same time, more entrepreneurs are jumping into the fray, and less money is available from investors. In my view, savvy “super angel” investors such as Mike Maples, Jr. , It’s time for a new startup model.

Startup 245

Startup Angel Investor Technical Review Incubator 245

Startup Professionals Musings

OCTOBER 17, 2022

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over twice as many companies, according to a classic Crunchbase article. Individual angel investors and crowdfunding have been adding to the momentum, some say exceeding VCs in total amount invested.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

MAY 26, 2013

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels.

Angel Investor 263

Angel Investor Term Sheet Due Diligence Early Stage 263

Startup Professionals Musings

AUGUST 25, 2018

The cost of rolling out a business has never been lower – it only takes a few hundred dollars to incorporate a Limited Liability Corp (LLC) online, create your own website, use social media to get attention, and you are in business. In the early Internet days, it would cost a million dollars to get this far.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184