The Road Less Traveled: Non-Standard Early Stage Funding Paths

View from Seed

As the seed stage that atomized and series A rounds have become larger and more traction based, the paths to series A have changed. This is the logical path that one would think is pretty “standard” for early stage companies.

Put A Coin In It! Invest In Early Stage Startups To See Maximum ROI


Investing has always (and will always) come with a long laundry list of liabilities that can deter even the most experienced investors from making a generous contribution to a startup or early-stage company they believe in. by Emmanuel de Watteville, co-founder of Blue Ocean Ventures.

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How to Scale Early-Stage Investing

David Teten

Before making the decision to join ff Venture Capital , I did some research on early-stage tech investing as an asset class and how it’s evolving. Although any given early-stage company is quite risky, when aggregated across a large portfolio, returns are very attractive.

The 4 Partners Early-Stage Startups Need

Early Growth Financial Services

I often write about the best strategies for startup fundraising or how to manage startup financing and optimize for growth. Equally important, is an area many startup founders don’t always prioritize: choosing the right service providers and understanding the value they can bring, especially to an early-stage startup. Here are three of the most common: When … read more > Early Stages Startup Business

The 4 Partners Every Early-Stage Startup Needs to Have

Early Growth Financial Services

I often write about the best strategies for startup fundraising or how to manage startup financing and optimize for growth. These service providers do more than provide a service; they are partners and important players within your startup ecosystem, providing guidance, connections, and support. Here are three of the most common: When you’re incorporating … read more > Early Stages Startup Business

Funding Advice – Interview with Richard Bearman, MD of Start Up Loans UK

The Startup Magazine

Through our network of delivery partners, Start Up Loans provides pre-application support with business plans and cash-flow forecasts to help you get into the best possible position to succeed. As part of The Startup Magazine Interview Series , we interviewed Mr. Richard Bearman.

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Do startups need business insurance?

The Startup Magazine

For startup owners, the initial stages of business can be the most thrilling and terrifying: it’s time to crunch the numbers, go the extra mile, and make your vision fly. The other business partner was the engineering expert who knew how to refurbish the cranes.

Raising Money Using Customer Development

Steve Blank

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. The goal of their startup in this stage becomes “getting funded.” What are Early Stage VC’s Really Asking?

[INTERVIEW] Mark Attanasio, Toronto Financial Services Executive, Managing Partner Of Hillcrest Merchant Partners


It’s taken the Toronto executive from the world of Big 3 Accounting (as a CPA with PricewaterhouseCoopers in his early career) to Investment Banking(National Bank Financial) and capital markets (co-founding Eight Capital after leading the management buyout of Dundee Capital Markets).

A Savvy Startup Always Builds a Great Loan Pitch

Startup Professionals Musings

Many entrepreneurs are convinced that banks are not worth the effort for startups, especially early-stage ones that still don’t have a revenue stream, or collateral to back up their financing needs. Tags: early-stage startup entrepreneur bank loan business

Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

I made my calls around to a few firms today to hear how their partner meetings went. So why invest in that period of uncertainty unless it’s early-stage and thus valuation matters less. At least later stage investors.

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Strategy Roundtable: Convert Potential Competitors to Partners


And these pilots will pay for her early bootstrapping phase. All this, could, potentially, be done without external financing. And along the way, if necessary and appropriate, she can raise financing with a vastly more validated business.

Funding goes global: location is no longer your financing destiny

Version One Ventures

In short, you’re going to want to look for the best funding partner (or collection of partners) possible, rather than just focusing locally. For example, NYC-based Union Square Ventures has built up the most experience around “large networks of engaged users”; Berlin-based Point Nine Capital is one of the strongest early-stage SaaS investors; and version one ventures probably has more marketplace investments than most seed funds.

The five C’s of Business Partners: a marriage without the sex


In working with entrepreneurs over the years, I have learned that the difference between success and failure is often centered on the people aspects of the business rather than strategy, finance, or operations. Nowhere is this more evident than with the issues related to business partners.

Benchmark’s New General Partner: Scott Belsky

The partners at Benchmark are delighted to announce that Scott Belsky has joined the firm as our newest general partner. It is rare for us to encounter a partner candidate who has so much experience as an operator, investor, and advisor at such a young age. Scott came to our attention through his work as an early-stage investor and active advisor to important companies like Uber, Warby Parker, Pinterest and most recently Periscope.

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others


How to finance a new seed-stage startup? ” 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.

Series Seed Financing Documents Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0 Mahatma Gandhi I hesitate to use a quote from one of the greatest people ever to grace planet earth, and certainly the question of how to structure early stage investment is a laughable cause as compared to the rights that Ghandi (also a lawyer) fought to advance.  The Series Seed project is about standardization of a simple equity financing transaction.

Building a financing plan around value creation milestones

The Equity Kicker

Twice in the last week I found myself coaching founders on how to build a financing plan around value creation milestones so I thought I would share what I said here. Given that the valuation of a startup increases when milestones like these are hit it makes sense to build a financing plan based on when they are likely to come in. July – pilot deal with a major retail partner goes live. November – retail partner decision to roll-out product to rest of stores.

Securing Startup Financing for Tech Companies

Early Growth Financial Services

The webinar featured Lighter Capital’s CEO, BJ Lackland, Silicon Valley Bank’s Head of Early Stage Banking, Claire Lee, and Voyager Capital’s Managing Partner Erik Benson. We compiled the top audience questions and answers: How is getting funding from VCs different from obtaining financing from other types of investors? This guest post was contributed by BJ Lackland, CEO of Lighter Capital.

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

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). Series Seed Financing Documents (by Fenwick & West). This post assumes that you have a basic understanding of Series A financing terms.

How To Build A Startup That Doesn’t Flop


If followed, we believe it can help startup teams navigate the critical early stages of development – and avoid joining a majority of early stage companies that end up on the entrepreneurial scrap heap.

The Importance of BUS DEV

Scalable Startup

BusDev is relationships, longer term thinking, non-revenue partnerships, communication between Sales, Marketing, Engineering and Finance if you have all of those covered. They also find creative ways to do business or vastly improve business relationships, especially when they can work with BusDev counterparts at target partners. They don’t worry about this weeks revenue or finance, etc. People often undervalue Business Development as a critical function in a startup.

Venture Innovation, or why the First Round Capital Entrepreneur's.

There is an amazing wealth of innovation around early stage venture financing, most of which developed in just the past few years. Then there are new sources of financing - groups or people that literally didnt exist as early stage financiers just a few years ago: OReilly AlphaTech Ventures , True Ventures , Jeff Clavier , First Round , Ron Conway & Co. skip to main | skip to sidebar. Maximizing the serendipity around you. Jan 30, 2010.

The Second VC Round – A True Test of Scalability

Scalable Startup

Accel Partners. Greylock Partners. Meritech Capital Partners. In one scenario in my career I was with a company that had taken only one round of equity financing. Our current venture partners felt we needed some insurance money in case of a downturn, more marketing money, a bigger team of investors, and a new logo. early stage founder Revenue Growth Scalability startup CEO Uncategorized

Rocket Science 4: The Press is Our Best Product

Steve Blank

Which at this stage of the company was marketing and financing. The positive effect of the tidal wave of press was as a door opener for us to raise money from corporate partners.

Tips for Transitioning from Veteran to Entrepreneur

The Startup Magazine

The loans are 100% financed. But this can be conducted in the early stages of creating a business plan. American Corporate Partners is a non-profit organization that helps pair veterans with mentors from Fortune 500 companies in a year-long mentorship program.

5 Hidden Ways Paying By Check Is Hurting Your Business


According to research by Glenbrook partners, errors affect anywhere from 4 to 29 percent of payments. She has 20 years of experience in management, finance, and marketing roles in both large and early stage companies.

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How to think about cash vs. equity compensation

A Smart Bear: Startups and Marketing for Geeks

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? How-To finance hiring investment

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Early Growth Financial Services Announces New Partner and VP of Sales

Early Growth Financial Services

New VP of Sales to lead EGFS business development efforts in California San Francisco, CA Early Growth Financial Services (EGFS), an outsource accounting, finance, and tax support firm that provides on-demand services to early-stage companies, has just announced a new partner to their leadership team. Originally published in PRWeb.

Pre-Seed Rounds Aren’t Going Away, But Pre-Seed Funds Are

View from Seed

Over the past few years, “pre-seed” as a distinct category has emerged within the early stage fundraising landscape. To some degree the best way to describe a pre-seed round is that you know it when you see it, as the definition is squishy… but most pre-seed rounds are characterized as relatively small ($750K or less), early in company formation (pre-product), and typically followed by a larger “seed” round ($1M-$3M) within 12 months.

Which Fundraising Round Should You Skip?

View from Seed

Or, if you can’t skip a round, when should you try to work extra hard to minimize dilution and when should you be prepared to take more dilution for the right partner/situation? Also, the benefit of raising a pre-seed from great partners probably outweighs the cost. Hopefully, by bringing on strong partners early, you will get great advice and support to minimize your overall dilution down the road.

VC Seed Funding Example: Trada

Feld Thoughts

My partner Seth Levine has a detailed post up today titled Trada – from the beginning that describes the creation and financing of Trada. Instead we quickly put our heads together about a financing (we like to say it was over beers, but the truth is more mundane – we hammered out the details in a 10 minute conversation in the conference room of the Foundry office). We did a second financing by ourselves at an increased valuation – this was the “Series B&#.

Steel In Their Eyes – Why VC’s Should Be Startup CEO’s

Steve Blank

Every potential early-stage Venture Capitalist should take a year and do it before he or she makes partner. Over time Venture firms realized that the partners in the firms needs a variety of skills: People skills (ability to recognize patterns of success in individuals and teams). Early-stage Venture Capital firms grow their partnerships in different ways, some hire: partners from other firms. we have a partner-track associates program.

Friday Funism – Fear vs Greed

View from Seed

One of the most relevant scenarios that this fear vs. greed lens applies towards is insider-led financings. With the proliferation of multiple seed rounds prior to a Series A, these situations are coming up increasingly in the early stage startup ecosystem. That story is built brick by brick through subtle cues of amounts of insider participation, who issues a term sheet, structure of the financing, etc. Actions always speak louder than words.

Startup Benchmarks

VC Cafe

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Benchmarks are typically specific to stage/business model/geo.

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Why Has Seed Investing Declined? And What Does this Mean for the Future?

Both Sides of the Table

As a result of the IPO window shifting we saw a massive inflow of public-market capital into the latest stages of venture. why the hell has seed financing declined so much in the past 3 years?? But the strangest thing about the decline in the seed stage only happened in the seed stage.

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4 Dirty Secrets VCs Won’t Admit

View from Seed

Dirty Secret #1: An early-stage startup’s design actually does matter. It probably shouldn’t be the case, but the look and feel and polish of your materials makes a big difference for early-stage investors. Almost all VCs say they like to invest really early.

The Traction Gap Framework: Four Pillars Of Startup Success


Each has specific requirements linked to each stage and value inflection point of the Traction Gap journey. Most early stage startups tend to do well in this area because entrepreneurs generally launch their startups believing they have a great product idea.

Growthink Innovation Series: FinTech

Growthink Blog

Webinar Description: Entrepreneurial and Investment Opportunities in Fintech You’re invited to listen to a webinar, hosted by Growthink co-Founder and Managing Partner Jay Turo, where a select group of Fintech entrepreneurs and investors will share how they and their companies are winning in this incredibly dynamic space. LendingTree is an online lending exchange that connects consumers with multiple lenders, banks, and credit partners.

What Makes a Great Consumer Startup Marketer?

View from Seed

VP Finance and Analytics. And all of them have a highly quantitative skillset from a variety of industries like finance, consulting, and other fields. Additionally, all of them were younger than me (mid-20s to early 30s).

Choosing Vendors to Meet Your Business Needs

The Startup Magazine

If you don’t have a good feeling at this early stage, there might be a real problem your subconscious is trying to point out. Depending on how critical this vendor will be to your company’s future, you should be sure to give priority to business partners over other service providers.

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The Traction Gap Framework: Four Pillars Of Startup Success


Each has specific requirements linked to each stage and value inflection point of the Traction Gap journey. Most early stage startups tend to do well in this area because entrepreneurs generally launch their startups believing they have a great product idea.

The Version One Promise to Founders

Version One Ventures

The venture capital market has become very noisy over the past few years, especially on the early-stage side. Entrepreneurs have an increasing amount of financing options – that’s good news, but it also makes it harder to choose the right partners for your journey. Not a day goes by that a new fund isn’t being announced.