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7 Ways Due Diligence Helps Before Final Commitment

Startup Professionals Musings

Remember that investors at this stage have heard primarily from the founder, and only reviewed written business plans and collateral. Due diligence is going the next step, to meet and interview all key members of the team, visit the business location and follow-up with early customers and advisors.

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No Plan Survives First Contact With Customers – Business Plans versus Business Models

Steve Blank

He said, “After we graduated we took our great idea, holed up in my apartment and spent months researching and writing a business plan. We even entered it in the business plan competition. Then they had a five-year P&L statement, balance sheet, cash flow and cap table. It was an exquisitely crafted plan.

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Why Even Silicon Valley Entrepreneurs Need a Business Plan

Up and Running

Since I’m in the business planning business , it was great to see billionaire investor Peter Gregory ask Richard, the entrepreneur and protagonist of the show, for his business plan. Dejected, Richard goes home and starts reading about business planning on Wikipedia. What do they do? Definitely not.

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How to Pick the Right Attorney For Your Startup

Up and Running

of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% This should be clearly spelled out in your Capitalization Table , or “Cap Table” as it’s commonly called. The deal we made with him was he’d get 33.3%

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Making Decisions in Context

Austin Startup

Your Cap Table is something that deserves constant care and attention. Messy cap tables can come back to haunt you when you do a financing or sell the company. Your original business plan will probably go out the window when you land your first customer. Keep the valuations consistent with company progress.

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Setting Up Your Accounting System

Feld Thoughts

Anytime the financial model indicates that SayAhh will run out of cash, determine how you will raise capital to ensure liquidity and be sure to properly account for the debt or equity transaction on the balance sheet and Cap Table. Tie each round of funding to a set of key milestones in the development of your product/business.

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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

It gives in depth examples & templates explaining documents like Term Sheet, Cap Table, Convertible Securities plus the importance of 83(b) filing. Links to Download Arushi’s eBook. Apple iBook: STARTUP Financing, Equity and Tax. Kindle edition STARTUP Financing, Equity and Tax.

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