Startup Professionals Musings

SEPTEMBER 22, 2011

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

www.startuplessonslearned.com

MAY 4, 2012

Founders Dilemmas: Equity Splits. The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founders Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. I was lucky enough to get to read a version of the book when it was still in draft form.

Equity 72

Equity Founder Technical Cofounder Cofounder 72

YoungUpstarts

JULY 16, 2019

The fact is that business interest payments are tax deductible, unlike payments made to equity investors which don’t consider tax payments. You can either raise capital in return for ownership interests in your business or you can obtain loans to finance your business. Stay in charge.

Software Review 113

Software Review Startup Equity Bootstrapping 113

David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Gust

DECEMBER 15, 2013

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  What are the reasons to choose one financing structure over another?

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Professionals Musings

JUNE 20, 2016

Even if your product is a technological marvel, I look for balanced strength on the team in finance, marketing and operations. Investors all know that the startup road is long and hard, so they look for people who have put and will continue to put “skin in the game” -- time, sweat equity, and money. Able to communicate on every level.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Software Review 152

YoungUpstarts

OCTOBER 10, 2014

Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. Debt financing is the better choice when you prefer to retain control of your operation, and you do not mind the tradeoff of greater risk for higher earning potential. Expertise.

Equity 176

Equity Limited Liability Company Vietnam Finance 176

Startup Professionals Musings

APRIL 30, 2012

Here are five good reasons for setting the strategy early, as summarized by Mark Thompson and Brian Tracy in their recent book “ Now, Build a Great Business! Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: Increase return on equity invested.

Intellectual Property 248

Intellectual Property Startup IP Finance 248

Feld Thoughts

JUNE 4, 2019

King of Capital was a really useful book to read on a number of levels. While 2011 is only eight years ago, it’s a lifetime in the world of finance, private equity, venture capital, and business. It was indeed private equity’s moment. And then, a year later, the global finance crisis was in full bloom.

Private Equity 82

Private Equity Cofounder Equity Venture Capital 82

YoungUpstarts

FEBRUARY 5, 2013

If these are the kinds of questions you have, the book “ Start-Up Guide for the Technopreneur, + Website: Financial Planning, Decision Making and Negotiating from Incubation to Exit ” is likely to be of help. “It is good and advisable that investors recognize that you have a passion for what you are doing. .”

Technical Review 164

Technical Review Private Equity Thailand Incubator 164

Up and Running

SEPTEMBER 4, 2019

Outsourcing finance and accounting tasks to qualified experts will often decrease your overall costs and increase overall quality—and you might find that there are other repetitive tasks that you might be able to outsource to save you time and money. Opportunities for outsourcing. Establish a clear set of standardized accounting practices.

Balance Sheet 79

Balance Sheet Software Review Technical Review Equity 79

Hunter Walker

JUNE 10, 2016

Our holy grail is one solution that allows us to follow our customers seamlessly from booking to in-studio experience to post event follow-up. But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. But that’s the tip of the iceberg.

Technical Review 50

Technical Review Equity SBA Software Review 50

Hunter Walker

JUNE 10, 2016

Our holy grail is one solution that allows us to follow our customers seamlessly from booking to in-studio experience to post event follow-up. But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. But that’s the tip of the iceberg.

Technical Review 48

Technical Review Equity SBA Software Review 48

genylabs.typepad.com

SEPTEMBER 24, 2011

Working for Equity Instead of Cash. has an article on service firms waiving their fees and instead taking equity in their clients. Interest in this waned when the Internet bust resulted in most tech start-up equity becoming worthless, but it seems to be coming back. Not all start-up stock is created equally.

Equity 40

Equity Technical Review San Jose Stock 40

Startup Professionals Musings

AUGUST 18, 2023

On the other hand, I remember a classic book, “ The 10% Entrepreneur: Live Your Startup Dream Without Quitting Your Day Job ,” by Patrick J. McGinnis, a well-known venture capitalist and private equity investor. Obviously his approach of absolute focus, getting up early, staying up late has worked for him.

Private Equity 255

Private Equity Salary Cofounder Equity 255

Startup Professionals Musings

MAY 30, 2022

In his classic book, “ Second Stage Entrepreneurship ,” Daniel J. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Professionals Musings

MARCH 22, 2020

Cohen and John Kador, in their classic book “ What Every Angel Investor Wants You to Know ,” includes these great points of practical advice on this subject: Manage expectations before the fact. Loans are a safer option than equity. Pay the money back, with thanks, as quickly as you can.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

NOVEMBER 9, 2010

Here are five good reasons for setting the strategy early, as summarized by Mark Thompson and Brian Tracy in their new book “ Now, Build a Great Business! Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: To increase return on equity invested.

Intellectual Property 231

Intellectual Property Startup IP Finance 231

Growthink Blog

DECEMBER 20, 2017

The first is that we currently have awesome economic conditions: a roaring stock market, low unemployment, and solid consumer and business confidence, all of which make right now as good a time as ever to start, grow, finance, and/or sell a business. Business equity is a measurement of financial accomplishment attained and retained.

Balance Sheet 48

Balance Sheet Malaysia Indonesia Finance 48

Up and Running

AUGUST 30, 2021

For Alex at Origin , a scheduling and booking platform for outdoor guiding companies, he soon realized that for the company to grow exponentially, they’d need thousands of customers because of how fragmented the market is. This is how you learn to handle rejection because fundraising is difficult.

Entrepreneur 132

Entrepreneur Lean Colorado Engineer 132

Startup Professionals Musings

NOVEMBER 13, 2021

This sharing economy is rapidly becoming the new business of sharing, with major winners already including Airbnb (rooms), Uber (rides), and Chegg (books). In the US, we are still waiting for equity crowdfunding, but the rewards, donation, pre-order, and debt-funding models are already working.

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Professionals Musings

MAY 9, 2014

I just finished a new book, “ Angel Investing ,” by a friend and one of the most active angel investors in New York, David S. David is also the CEO of Gust , which is an online platform for startup financing used by over 50,000 accredited angel investors, 1000 angel groups and venture capital funds, and 250,000 entrepreneurs.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

YoungUpstarts

JUNE 12, 2018

They work with attorneys to form corporate structures and help with financing agreements. Once an entrepreneur has their books and records aligned, they cannot forget about the one thing that is certain in life – taxes! Usually, the last thing they think about is when they should be talking to a CPA firm about their business lifecycle.

San Francisco 100

San Francisco CPA Alabama Tennessee 100

Startup Lessons Learned

APRIL 24, 2012

The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. The book taps Noam’s analyses of data on 10,000 founders, plus the personal stories of Evan Williams of Twitter, Tim Westergren of Pandora, and two dozen other founders.

Equity 168

Equity Founder Cofounder Vesting 168

YoungUpstarts

APRIL 22, 2014

Shark Question #4: How much equity and debt is there in your business? In other words, how much of the business is financed with equity (owner’s money) or debt (borrowed money). Sharks need to know how much “skin in the game” you have in your business.

CPA 160

CPA Technical Review Later Stage Equity 160

Startup Professionals Musings

NOVEMBER 30, 2020

On the other hand, I just finished a classic book, “ The 10% Entrepreneur: Live Your Startup Dream Without Quitting Your Day Job ,” by Patrick J. McGinnis, a well-known venture capitalist and private equity investor. Obviously his approach of absolute focus, getting up early, staying up late has worked for him.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321

YoungUpstarts

MAY 25, 2018

Pat would book locations for the college students to visit, and set up live entertainment with musicians, DJ’s, bands and other acts. Give these people equity to get them on board early on when cash is low. The business began to grow, as did his database of college students, their emails, cell phone numbers, and social media handles.

Developer 159

Developer Investment Bankers eCommerce Social Media 159

Feld Thoughts

JANUARY 8, 2016

In 1998, when I started ending up with lots of shares in public Internet companies, I came up with a formulaic approach for any public equities that are distributed to me (either from our funds or other VC funds). The first finance course I took at MIT was 15.401: Finance Theory I and was taught by Stewart Myers.

Flash 70

Flash Equity Stock Finance 70

Feld Thoughts

JULY 7, 2016

The thread of financing the company, especially through the first decade, was just incredible. His only real source of financing was tradition banks (who sucked) and partners (playing the float). The post Book: Shoe Dog appeared first on Feld Thoughts. If you are a founder, this is a must read.

.Net 76

.Net Finance Revenue Equity 76

Pascal's View

OCTOBER 11, 2013

I first visited the Museum of American Finance a couple of years ago, and it is not only a great space,it is a useful resource for visitors interested in a wide range of current exhibits on current capital markets topics, as well as documents and artifacts related to capital markets, money and banking.

New York 31

New York Technical Review Angel Investor Finance 31

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. .” 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

JUNE 5, 2015

Rose, according to his recent book, “ Angel Investing.” David is one of the most active angel investors in New York, and also the CEO of Gust , which is an online platform for startup financing used by over 45,000 accredited angel investors, 1000 angel groups and venture capital funds, and 200,000 entrepreneurs. Neither does David S.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

Austin Startup

FEBRUARY 4, 2019

Investors of EnrichHER get no equity. Equity investing typically is only suitable for high growth companies where an exit is expected. Some investors love the idea of waiting seven years for their equity paycheck, but other investors love the comfort of knowing expected payment terms. Tell us more about who is investing and why?

Startup 50

Startup Cofounder Technical Review Equity 50

ReadWriteStart

SEPTEMBER 10, 2010

Whether it is credit or equity, funding is very, very tight. I call it drip-financing. Most entrepreneurs have no choice but to avail of this sort of financing along with the mentoring and the contacts that could come with it (doesn't always come along, though). In 1M/1M, our preferred financing strategy is customers.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. What Has Changed in Financing? He also wrote this excellent book on the Venture Capital industry that I highly recommend ? even before the pandemic itself has been fully tamed.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

David Teten

JANUARY 11, 2020

In the venture capital/private equity business, investors are B2B microinfluencers. Other coinvestors: Limited partners, other VCs who are coinvestors, private equity funds which are potential growth-stage investors, etc. I record here the books I’ve read, not as diligently as I should. Only married once, just for clarity…) .

Social Media 60

Social Media Technical Review Media Private Equity 60