Startup Professionals Musings

DECEMBER 23, 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 252

Bootstrapping Sweat Equity Entrepreneur Technical Review 252

Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. Founder: “$8–10 million” VC: “What’s your current burn rate?” Founder: “$250k / month.” Founder: “Um. Having too little demand leads to bankruptcy.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Startup Professionals Musings

NOVEMBER 13, 2012

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 239

Sweat Equity Technical Review Bootstrapping Equity 239

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

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. Equity investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

SEPTEMBER 23, 2017

Deciding whether to increase money or trade equity in the business for much needed assistance, could be a tough call. I raised money and traded equity, but with my venture, I had to make one of the toughest decisions, to build it with some assistance of co-founders. Find the right co-founders.

Cofounder 124

Cofounder Sweat Equity Equity Dilution 124

Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.

Convertible Security 73

Convertible Security Equity Security Preferred Stock 73

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

YoungUpstarts

OCTOBER 28, 2015

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. Entrepreneurs need to hit a happy medium with backers, not giving away too much but not making overly aggressive demands.

Convertible Security 100

Convertible Security IP Technical Review Software Review 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

Startup Professionals Musings

MAY 30, 2022

That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. According to one study a decade ago, only 45% of founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Hunter Walker

AUGUST 7, 2017

Employee options pools, typically created at the point of financings, shouldn’t be treated as haggling over dilution, but rather a strategic resource that will help founders build the best team and, by extension, a more valuable company.

Equity 93

Equity Pre-Money Valuation Option Pool Founder 93

YoungUpstarts

NOVEMBER 27, 2018

by Emmanuel de Watteville, co-founder of Blue Ocean Ventures. From there, it’s time to inquire what the value of the company currently is and if their investment is going towards equity or loans. Before sealing the deal, the final step is to learn whether or not the company’s founder is willing to pivot in the future.

Early Stage 160

Early Stage Cofounder Startup Security 160

YoungUpstarts

OCTOBER 25, 2018

Today, Mark Attanasio gets to flex his full range of expertise and interests as co-founder and Managing Partner of Hillcrest Merchant Partners, a Toronto-based merchant bank focused on early stage and mid market growth companies. Mark Attanasio: Financing can be an ongoing, underlying issue, but there are so many speed bumps on the way.

Partner 113

Partner Technical Review Management Due Diligence 113

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

Startup Professionals Musings

JULY 16, 2012

In the last year, there has been a resurgence of interest, some say a bubble, by both angels and VCs, in a pre-Series A kicker to identify promising startups with seed funding, before major equity has been given away. Despite these pundits, I sense a fundamental change in the early-stage financing eco-system. Early-stage startup.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Austin Startup

JULY 6, 2018

The below outlines how I would approach the decision: Cash and Equity. Very simply, what are you giving and what are you getting in return in terms of cash and equity for joining the program? Some accelerators will require you to “make room” for them in future financings up to a certain amount. See: Ask the users.

Dilution 48

Dilution Startup Technical Review Equity 48

Startup Professionals Musings

SEPTEMBER 1, 2019

That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. According to one study a while back, only 45% of founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC?

Equity 78

Equity Revenue Cofounder Colorado 78

ReadWriteStart

JANUARY 29, 2023

When it comes to launching a startup, most founders think they should reside in the United States, Silicon Valley, in particular, to have a successful business. The pandemic has significantly increased the demand for access to digital services. In 2021, ASEAN DeFi startups could raise $1 billion in equity funding.

Asia 171

Asia Indonesia Silicon Valley Malaysia 171

K9 Ventures

JUNE 12, 2012

You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. This situation is not always in the best interest of founders. Some founders like to think that if they raise a lot of money now, they will never need to raise money again.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

David Teten

SEPTEMBER 5, 2014

Like many established finance & media companies, GLG knows that the tech startup sector is a growing part of the economy. Our founders realized that investors needed to learn interactively, on-demand, on very specific topics, and in an atmosphere of trust. Or, you can go straight to the source.

New York 114

New York Technical Review Networking Advisory Board 114

Gust

JULY 8, 2012

In the last year, there has been a resurgence of interest, some say a bubble, by both angels and VCs, in a pre-Series A kicker to identify promising startups with seed funding, before major equity has been given away. Despite these pundits, I sense a fundamental change in the early-stage financing eco-system. Early-stage startup.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Up and Running

OCTOBER 12, 2017

Whether you’re simply trying to scale your business or seeking equity investment, having a plan is key. . Tim Berry, founder of Palo Alto Software and Bplans, asked, “What’s the best way for entrepreneurs to demonstrate that they’ve thought through the essential aspects of their business, especially the financials?”.

Metrics 128

Metrics Software Review Forecast Small Business 128

K9 Ventures

JUNE 12, 2012

You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. This situation is not always in the best interest of founders. Some founders like to think that if they raise a lot of money now, they will never need to raise money again.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

ReadWriteStart

NOVEMBER 28, 2012

Startup accelerators: There are more of them – and more demand to land a spot within one – than ever before. In particular, use your accelerator to help you set up your accounting and finances. – Andrew Schrage , Money Crashers Personal Finance. Build A Relationship. Find Great Financial Advisors.

Technical Review 60

Technical Review Chile Startup Due Diligence 60

Gust

OCTOBER 21, 2011

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

The Next Web

FEBRUARY 27, 2014

This is typically in conjunction with an upcoming financing or pending takeover offer. Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. your equity in a hot new patented technology business), the higher the demand (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

Both Sides of the Table

APRIL 28, 2010

VC Financings: 1. Summit is a hugely respected firm in Silicon Valley and a long-term “institution&# but they’re better known as more of a “private equity&# investor meaning that they do later stage investments in much larger companies that are profitable. I keep meaning to get him drunk to spill the stories.

Venture Capital 270

Venture Capital Cofounder Spain San Diego 270

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. Same, except at the option of the noteholders (per the term sheet example above).

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Steve Blank

APRIL 14, 2013

For the last few years, there really hasn’t been a demand to innovate on top of the ecosystem that’s been built. ” A good number of startups in Beijing seem driven by the VCs – and not the founders. The motivations are the same – profit – driven by entrepreneurs and venture finance. New Rules for China.

China 327

China Silicon Valley Non-Compete Intellectual Property 327

Startup Professionals Musings

SEPTEMBER 13, 2017

That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. According to one study a while back, only 45% of founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. There is no free lunch.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Startup Professionals Musings

NOVEMBER 3, 2013

That’s where I see too much entrepreneur burnout, growth plateaus, and Founders being replaced, to their chagrin. According to one study , only 45% of Founders plan to exit after stage one, and my guess is that less than half the remainder survive the next stage in their own company. There is no free lunch.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Messy cap tables can come back to haunt you when you do a financing or sell the company. Kalanick, former investor BFF turned highly disappointed by founder behavior.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

K9 Ventures

NOVEMBER 21, 2011

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. The objective is really to be able to get some risk off the table for the founders and not leave all their eggs in one basket.

Founder 87

Founder Common Stock Preferred Stock Stock 87

Steve Blank

APRIL 14, 2013

For the last few years, there really hasn’t been a demand to innovate on top of the ecosystem that’s been built. ” A good number of startups in Beijing seem driven by the VCs – and not the founders. The motivations are the same – profit – driven by entrepreneurs and venture finance. New Rules for China.

China 219

China Silicon Valley Non-Compete Intellectual Property 219

K9 Ventures

NOVEMBER 21, 2011

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. The objective is really to be able to get some risk off the table for the founders and not leave all their eggs in one basket.

Founder 84

Founder Common Stock Preferred Stock Stock 84