Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? Some thoughts on raising angel money. When convertible debt first started being introduced as a “faster, cheaper way to get startups funded” they didn’t have pricing built into them. Investors call Bull Cap. Enter “the cap.”

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Genuine VC

FEBRUARY 12, 2012

We at NextView Ventures often invest in a startup’s first round alongside other funds; either seed stage focused ones like ourselves or larger traditional firms. Just as often, however, we’re investing alongside individual angel investors who are participating in the round as well. The Domain Angel.

Angel Investor 257

Angel Investor Syndicate Syndication Early Stage 257

Gust

DECEMBER 13, 2011

I’ve recently taken a look at seed stage funding by venture capitalists (VCs) and angel investors over the past five years. For VCs, I chose to look at all seed stage VC deals (from MoneyTree©) as well as those in five of the most active regions in the country. All Seed-VC. Silicon Valley.

Seed Stage 162

Seed Stage Southern California San Diego Silicon Valley 162

Steve Blank

FEBRUARY 26, 2020

Not all startups need outside investment to grow. What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Knowing these will help a founder position her pitch to get investors’ attention. Here’s the first 2½ years of a startup journey.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

View from Seed

OCTOBER 21, 2014

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. Lower-Than-Market Value.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Startup Professionals Musings

JULY 16, 2012

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Don’t be embarrassed, since even professional investors are often confused these days by the new terms, as well as old terms used with new meanings.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Both Sides of the Table

AUGUST 12, 2010

In the technology world there are a few websites that most startups track to keep up with the latest financings, acquisitions, product announcements and gossip: BusinessInsider, TechCrunch, Mashable, GigaOm, etc. Is there a bubble going on in seed investing? Angel investors need to be smart and not just follow-along. (ie.

Seed Stage 232

Seed Stage Valuation Private Equity Venture Capital 232

Genuine VC

FEBRUARY 12, 2012

We at NextView Ventures often invest in a startup’s first round alongside other funds; either seed stage focused ones like ourselves or larger traditional firms. Just as often, however, we’re investing alongside individual angel investors who are participating in the round as well. The Domain Angel.

Angel Investor 128

Angel Investor Syndicate Syndication Early Stage 128

Both Sides of the Table

OCTOBER 12, 2014

This is important for nearly every institutional investor because once you have 25-50 investments being able to “follow” the investments that are working well is critical to making money. New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Gust

JULY 8, 2012

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Don’t be embarrassed, since even professional investors are often confused these days by the new terms, as well as old terms used with new meanings.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Startup Professionals Musings

MAY 1, 2011

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Don’t be embarrassed, since even professional investors are often confused these days by the new terms, as well as old terms used with new meanings.

Early Stage 231

Early Stage Seed Stage Angel Investor Silicon Valley 231

mashable.com

NOVEMBER 3, 2010

This dynamic births serial entrepreneurs and motivates angels and venture capitalists to pull their friends into investment deals. For the first-time entrepreneur or founder looking for seed stage funding, this circle can be especially difficult to penetrate. What follows is the best advice and tips from these interviews.

Angel Investor 80

Angel Investor Startup San Francisco Social Media 80

mashable.com

NOVEMBER 2, 2011

Facebook Co-Founder’s Startup Asana Launches Publicly. 9 Tips for Raising Startup Funds on AngelList. Joshua Baer is the co-founder and CEO of Otherinbox , a prolific angel investor and the director of Capital Factory , Austin’s seed-stage incubator. This list of top angel investors is a good start.

Social Media 80

Social Media Startup Angel Investor RSS 80

Startup Company Lawyer

MARCH 14, 2010

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).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

VC Cafe

FEBRUARY 6, 2011

VC investors rely heavily on referrals, but what should a non US startup do when looking to raise funding in Silicon Valley? I found a question on Quora that relates to European startups, but found that some of the advice may be very relevant to Israeli startups as well. It’s not a dot, it’s a line.

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

Diego Basch

MARCH 14, 2013

Whether I like it or not I’m an angel investor , even though I prefer a different label. While that may be true, I invest in startups because I need to feel useful. I invest in some startups because I genuinely enjoy it. I don’t plan to allocate more than 5% of my portfolio to startups.

San Francisco 55

San Francisco Startup Silicon Valley Seed Stage 55

Startup Company Lawyer

AUGUST 31, 2012

Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. One major concern about convertible debt is that it eventually needs to be repaid if another round of financing doesn’t occur.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

mashable.com

SEPTEMBER 12, 2011

One of the things we hear a lot about in Silicon Valley is how cheap and easy it is to launch a startup these days. million in venture financing. In fact, it’s barely even the beginning for most companies in their seed stage financings. I’m now in my second founder/CEO role, having raised more than $18.5

Startup 79

Startup Social Media RSS Social Network 79

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. So, if you’re an investor or the creator of a new business, read on.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

JANUARY 27, 2012

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. Anti-dilution protection.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” A convertible note financing is not a loan in the conventional sense. Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

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. Anti-dilution protection.

Term Sheet 227

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

YoungUpstarts

NOVEMBER 17, 2016

This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies. That suggests, potentially, more early stage capital for entrepreneurs. As a VC and angel investor, I believe deeply in entrepreneurs. What kind of business is being launched?

Equity 100

Equity United Kingdom Cap Table Oklahoma 100

Austin Startup

MAY 17, 2017

It’s pretty well known that startups usually undergo a meaningful change in Board composition at their Series A round. At a minimum, the lead investor(s) of the round get Board seats; although they shouldn’t get Board control. Less has been written about what startup boards tend to look like before a Series A round.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

Genuine VC

JULY 10, 2012

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor.

Syndicate 207

Syndicate Syndication Seed Stage Portfolio 207

rapidrollout.wordpress.com

OCTOBER 23, 2010

Web Startup Lessons Advice from a CTO and Entrepreneur Home About Finding a Technical Partner for Your Startup Today I received an inquiry from a student at an Ivy League university who wants to launch a web startup. I found your suggestions in the article “Startup Mistakes: The Partnership Gone Sour&# especially useful.

Technical Review 40

Technical Review Fractional CTO Partner CTO Hire 40

Gust

DECEMBER 28, 2011

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.

IPO 153

IPO Venture Capital Entrepreneur Angel Investor 153

Steve Blank

APRIL 13, 2013

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. In the few days I was in China I met with several VC’s, angel investors, business press and spoke to hundreds of entrepreneurs. In these series of 5 posts, I thought I’d share what I learned in China.

Silicon Valley 267

Silicon Valley China Venture Capital Merger 267

Professor VC

SEPTEMBER 26, 2011

Dan Frommer, in Moneyball for tech startups , interviewed Fred Wilson, Chris Dixon, Paul Graham and Ben Horowitz on the topic. And given that four of the most important tech investors in the world seem skeptical of it, if someone can figure out a good formula that works, they may be able to exploit it". Thanks Steve. Steve Bennet.

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Professor VC

JANUARY 27, 2011

I've been working within the sphere of startups and angels for a couple of years in Vancouver, BC and it's been an interesting experience.a What does it take to be an Angel Investor? I am an active angel investor and on the board of Sand Hill Angels. work at home. May 1, 2011 10:32 PM.

Technical Review 31

Technical Review Due Diligence Silicon Valley San Jose 31

Business Plan Blog

JANUARY 2, 2014

government’s long standing restrictions on fundraising has given life to a new type of financing called crowdfunding that allows Angel and other early stage investors to quickly assemble a group of investors over the internet. While startups are still limited by the types of investors they can take money from (i.e.

Angel Groups 51

Angel Groups Accredited Investor Angel Investor Due Diligence 51

VC Adventure

MARCH 17, 2016

I’ve always felt that a robust angel financing market was important to startup ecosystems and the data on the next two charts really brings that home. These data are specific to Colorado (since my presentation was to a CO audience) but the trend holds true across startup ecosystems.

Syndicate 48

Syndicate Syndication Angel Investor Colorado 48

Steve Blank

APRIL 13, 2013

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. In the few days I was in China I met with several VC’s, angel investors, business press and spoke to hundreds of entrepreneurs. In these series of 5 posts, I thought I’d share what I learned in China.

Silicon Valley 159

Silicon Valley China Venture Capital Merger 159

Hippoland

JANUARY 4, 2017

If this is your first time raising money, the mechanics of how investors buy into your company can be very confusing. Here’s a quick primer on how investments tend to work in startup companies at the seed stage. Equity Traditionally, investors have invested in companies to receive equity, or shares in a company.

Convertible Security 48

Convertible Security Equity Security Silicon Valley 48

Women Entrepreneurs Can

MAY 9, 2019

Early on in any startup is more often than not filled with the unknown. There’s a ton of questions, but one thing is for certain: it is thrilling to see your little startup start to come into its own. Venture capitalists are used only after a startup has begun to show a significant amount of revenue.

Programming 40

Programming Sweat Equity Startup Private Equity 40

Professor VC

JULY 25, 2013

I''m a strong believer in fairness (although my daughters may not agree) and investors and entrepreneurs working together as a team to create something valuable to all stakeholders (customers, employees, founders, investors). Startup outcomes tend to be very binary. Seems like my rant is picking up steam now.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Both Sides of the Table

MARCH 6, 2011

I was an angel investor in his company, made a bunch of calls on his behalf and then I personally sent it out on AngelList. At first I was cynical about his ability to have 500 startups (or some fraction of that which is still larger than any VC has). Through this process he raised $2 million. I am impressed with his approach.

Valuation 292

Valuation Deal Flow Lead Investor Cofounder 292