Remove Cram Down Remove Management Remove Marketing Remove Operations
article thumbnail

6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

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. In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue.

article thumbnail

Want to Know How First Round Capital was Started?

Both Sides of the Table

Howard Morgan earned a PhD in Operations Research/Computer Science in 1968. He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. They did not take salaries during the first two years and invested more money in the firm than they received from management fees.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

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. In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue.

Cram Down 148
article thumbnail

Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

Cohen and John Kador, in their recent book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. In the interim, there is no market for the shares, and no dividends or interest.

Founder 254
article thumbnail

Don’t Hurt Friends and Family Investors Who Love You

Startup Professionals Musings

Cohen and John Kador, in their new book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your cash flow.

Cram Down 230
article thumbnail

How To Take Money From Friends And Still Be Friends

Startup Professionals Musings

Cohen and John Kador, in their classic book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. In the interim, there is no market for the shares, and no dividends or interest.

Cram Down 120
article thumbnail

Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Technical progress and market traction are much slower and cost a lot more than anticipated. Management has the wrong pedigree, is geographically undesirable, competes in the wrong industry, and/or has a business model that lacks "scalability credibility" with the venture community. There are a lot of dark, hard days.