Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Both Sides of the Table

DECEMBER 14, 2014

I had witnessed a number of early-stage tech startups in LA raise seed capital from the Bay Area and relocate. It was 2009 and it was terribly difficult to get any financing (if you can remember a time like that!) They have raised company profiles and made follow-on financings easier. So we went for it.

Early Stage 290

Early Stage Venture Capital Los Angeles Coder 290

K9 Ventures

JUNE 5, 2015

Together this means that Seed stage companies need to run longer and at a higher expense structure, meaning they need to raise a lot more capital. A re-jiggering of deal stages and sizes had begun in 2013. Your early stage investment portfolio may no longer really be early stage.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

View from Seed

OCTOBER 21, 2014

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Feld Thoughts

AUGUST 12, 2011

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. Feeling overwhelmed, Dick emailed his friend Josh, the CEO of an early-stage startup in Boulder, to see how they figured out all of this stuff.

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

ReadWriteStart

APRIL 26, 2012

If you’re looking for seed or startup capital, the time to make your move is now. The study found angel interest in early-stage investing is growing. Last year, 42% of angel investment was seed and startup capital, reversing a two-year decline in the percentage of angel capital going to early-stage companies.

New Hampshire 120

New Hampshire Early Stage Seed Capital Angel Investor 120

Hunter Walker

NOVEMBER 20, 2013

Additionally, funds such as Foundry Group and Google Ventures have taken their own approaches – the former creating a separate early stage entity , the latter encouraging their seed stage partners to create standalone personal syndicates. Maybe they’d throw off cash dividends for years to come.

Syndicate 98

Syndicate Syndication South America Seed Stage 98

Growthink Blog

MAY 10, 2012

The five main stages include the following: 1. Pre-Seed Funding 2. Seed Funding 3. Early Stage Investment (Series A & B) 4. Later Stage Investment (Series C, D, and so on) 5. Put everything else on your "wish list" to buy with revenues from sales or additional financing.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Both Sides of the Table

OCTOBER 26, 2014

Contrary to popular opinion I actually believe crowd-funding is best used after seed capital or venture capital. The reality is you must be great at HR, PR, finance AND product. It super charges a business that is closer to product delivery. ” Many CEOs act like VPs of product or CFOs. So be careful.

PR 319

PR Venture Capital Hiring Seed Capital 319

Business Plan Blog

JANUARY 2, 2014

In September of this year, the SEC voted to overturn the ban on “general solicitation” that made it illegal for companies to publicly advertise that they are raising capital. Download our free Raising Capital from Angel Investors eBook. This guide will walk you through the process of obtaining seed capital for your startup.

Angel Groups 51

Angel Groups Accredited Investor Angel Investor Due Diligence 51

The Startup Lawyer

OCTOBER 28, 2010

If someone wants you to help your startup get seed capital only if they get a cut, you need to run far away. You may think raising capital will take up an obscene amount of time at your startup (it does) and/or you don’t know any investors (you probably don’t), but your startup can not outsource or delegate this task.

Finder 72

Finder Private Placement SEC Seed Capital 72

Both Sides of the Table

MAY 15, 2010

Next Wednesday we’ll have Dana Settle of Greycroft Partners, a New York / LA early-stage venture capital fund. Often times when companies raise “bridge” financing (this is money from internal investors. Doxo (November 2009 financing, just announced in May 2010 as company exited stealth mode).

Stealth 285

Stealth SEC Advertising Accredited Investor 285

Business Plan Blog

OCTOBER 4, 2013

Aligning the Startup Team Strategy with the Capitalization Strategy. The single most important factor to raising capital for any tech startup is the management team. This is true for early stage funding as well as venture capital funding. Early Stage. Seed to Series A.

Part-Time VPE 79

Part-Time VPE Fractional VPE Cofounder CTO Hire 79

Scott Edward Walker

SEPTEMBER 21, 2011

If you’re an entrepreneur looking for seed capital, but don’t know any sophisticated angel investors, you need to hustle and build relationships in order to get “warm” introductions. This approach will keep the financing relatively simple and inexpensive and will defer the company’s valuation (i.e.,

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The company spends the $1m building and launching their first product.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

maplebutter.com

JANUARY 8, 2013

Other sources of capital. If you believe in it – then finance whatever you can yourself. When it comes to early stage investing – it’s all gut. Does it make sense to spend this time speaking about your early stage start-up when your product has not even entered Alpha testing?

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Rob Go

NOVEMBER 30, 2012

I was surprised to find that it has been more than two years since my post summarizing the state of the seed stage market, and trying to bring a balanced view on the rise of Super Angels and Micro-VC’s. The venture capital market continues to be in transition, and a lot of changes have occurred in the early stages of the market.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

mashable.com

NOVEMBER 3, 2010

Here’s an overview: Mitch Kapor: Kapor is founding partner of Kapor Capital , a firm that invests in seed and early stage startups. Brad Feld: Feld is co-founder and managing director of Foundry Group, a Boulder, Colorado venture capital firm that focuses on early stage investments ranging from $250,000 to $500,000.

Angel Investor 80

Angel Investor Startup San Francisco Social Media 80

techcrunch.com

FEBRUARY 19, 2010

Tweet View Comments Sarah Lacy Feb 19, 2010 Pepperdine has a new study out that attempts to shed some light on the clubby, shadowy world of private finance. Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Think Again. Translation?

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62