Remove Cram Down Remove Marketing Remove Operations Remove Revenue
article thumbnail

6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

article thumbnail

The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

Cram Down 148
Insiders

Sign Up for our Newsletter

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

article thumbnail

Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

Founder 254
article thumbnail

How To Take Money From Friends And Still Be Friends

Startup Professionals Musings

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

Cram Down 120
article thumbnail

Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering. Technical progress and market traction are much slower and cost a lot more than anticipated. There are a lot of dark, hard days.