Business Plan Blog

NOVEMBER 13, 2013

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Raising Angel Capital. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Pros and Cons of Convertible Debt.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

OCTOBER 17, 2011

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Gust

SEPTEMBER 29, 2011

By contrast, venture capitalists and angel investors typically make scores or even hundreds of investments over the course of their careers. It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Scalable Startup

AUGUST 9, 2018

Raising seed capital is a tricky business. Most are making major mistakes in their approach when seeking capital. But to get that Silicon Valley angel funding you have to be part of that social network; most of the rest of the world doesn’t have that frothy environment. To me, this is the best time to raise your seed.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Convertible equity? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” Convertible debt? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

Finance 134

Finance Convertible Security Equity Seed Stage 134

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Business Plan Blog

JANUARY 2, 2014

While startups are still limited by the types of investors they can take money from (i.e. wealthy, verified investors), the lifting of the ban on general solicitation has allowed investors to publicly advertise that they are raising capital, be it on their blog, Twitter, Facebook, or crowdfunding site such as AngelList.

Angel Groups 51

Angel Groups Accredited Investor Angel Investor Due Diligence 51

Gust

OCTOBER 5, 2011

In case it isn’t clear by now, angel investors aren’t in the business of making risky early stage investments in order to earn 6% interest on their money, or even 10%— the upside is all in conversion to equity—so the interest rate isn’t a major point of negotiation. These deal terms are simple but significant.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Business Plan Blog

NOVEMBER 22, 2013

The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. While all of these milestones are vital to the success of raising seed capital, market validation is towards the top of the list.

Intellectual Property 55

Intellectual Property Advisory Board Startup Seed Capital 55

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. and the investors, who put up $1m in a convertible note, get 0.1%.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

maplebutter.com

JANUARY 8, 2013

Ideally you can pay them based + equity so that you’ll get their attention and focus on the project. Dan, I have a startup www.hispanoenamerica.com that we just launched two weeks ago, I have clawed my way to this point and we are at the point where we need some capital to invest in our marketing and execution.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

VC Cafe

JULY 5, 2010

A s venture funds struggle to raise money in Israel, seed capital, one of the earliest and riskiest stages of investment, is becoming harder and harder to secure. VC Cafe: There has been a drastic rise in the number of funds offering seed (or super seed) capital in recent months, especially in the valley.

Technical Review 106

Technical Review Software Review Seed Stage 106