Startup Professionals Musings

AUGUST 24, 2016

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity.

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Equity Cofounder Technical Cofounder Intellectual Property 120

Austin Startup

NOVEMBER 20, 2020

That’s where we come in, Dream Corps TECH , formerly #YesWeCode, is a national program cultivating future leaders and entrepreneurs from underrepresented backgrounds, creating a pipeline of diverse talent that will shift the culture of the tech sector. To be truly inclusive, our people must be the architects creating that future.

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Technical Review Texas Equity Programming 93

Startup Professionals Musings

FEBRUARY 15, 2023

With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Here are the key principles I recommend as an advisor to many entrepreneurs: Start your business in your own home. Marty Zwilling

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

Startup Professionals Musings

OCTOBER 19, 2022

Even if you ignore all the hype around crowdfunding, there can be no doubt that it is a real alternative for entrepreneurs to achieve visibility and funding today. Startup equity model. In Europe, other investors can buy equity, with platforms such as Seedrs. In the U.S.,

Accredited Investor 352

Accredited Investor Startup SEC Equity 352

Startup Professionals Musings

APRIL 22, 2023

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. Bankers do not contribute equity. The short answer is that some banks will help, if you do your homework. Money from other sources.

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Equity Silicon Valley Finance Early Stage 303

Startup Professionals Musings

JUNE 11, 2022

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Individual and institutional philanthropy.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. These groups are now largely run by volunteers at no cost to entrepreneurs. Lack of checks and balances on startup valuations.

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Equity Angel Groups Accredited Investor Due Diligence 411

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. Equity investors. Stages of Equity-based funding. ?

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Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JULY 14, 2014

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity (coming soon).

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

NOVEMBER 8, 2010

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). The same logic applies to splitting equity with co-founders.

Equity 228

Equity Intellectual Property Cofounder CTO Hire 228

Startup Professionals Musings

APRIL 4, 2022

My first advice for new entrepreneurs is to pick a domain that doesn’t have the sky-high up-front development costs, like online web sites and smart phone apps. The most effective new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. Use crowd funding.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

FEBRUARY 10, 2023

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. It’s no fun for either side.

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Technical Review Due Diligence Term Sheet Offshore 345

David Teten

JANUARY 21, 2021

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing. We plan to raise $2.5m

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Equity Revenue Cofounder Colorado 78

Startup Professionals Musings

OCTOBER 13, 2013

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

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Equity Angel Investor Technical Review Exit Strategy 207

Startup Professionals Musings

FEBRUARY 25, 2023

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

MAY 14, 2023

Desperate entrepreneurs lose their leverage and die young. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cash flow personally every day. Buffer your projected resource requirements.

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Burn Rate Hockey Stick Management Salary 258

David Teten

APRIL 1, 2021

I’ve recently advised a number of emerging private equity and VC funds who are wrestling with the question: What are the highest impact steps they can take to support their portfolio companies? . Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies.

Private Equity 78

Private Equity Venture Capital Portfolio Equity 78

Startup Professionals Musings

APRIL 27, 2016

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Startup Professionals Musings

OCTOBER 5, 2014

Desperate entrepreneurs lose their leverage and die young. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cashflow personally every day. burn rate business cashflow entrepreneur investor startup'

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

OCTOBER 16, 2022

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage angel investors. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

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Advisory Board Dividend Angel Investor Cofounder 368

Hunter Walker

DECEMBER 11, 2023

Originally backed by venture capital, in 2021 Daniel worked with TPG , a large private equity firm, to make them the majority investor. As a result, we were considering relationships with a number of different large-scale investors including private equity firms. What does 2023 Daniel know that 2012 Daniel didn’t?

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Private Equity Equity DC Leveraged Buyout 78

Startup Professionals Musings

NOVEMBER 7, 2016

Despite a valiant effort, we only briefly succeeded in putting IBM in the personal computer business, but our efforts changed my view of entrepreneurs forever. No consideration can be given to experience running a startup, breadth of skills, or even thinking like an entrepreneur.

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Technical Review Entrepreneur Silicon Valley Burn Rate 214

Startup Professionals Musings

DECEMBER 6, 2019

My first advice for new entrepreneurs is to pick a domain, such as online web sites and smart phone apps, that doesn’t have the sky-high up-front development costs. Nevertheless, it’s an option that doesn’t cost you equity. It’s what separates the true entrepreneurs from the wannabes. Solicit funds from friends and family.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

APRIL 23, 2012

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). The same logic applies to splitting equity with co-founders.

Intellectual Property 252

Intellectual Property Equity Cofounder CTO Hire 252

Startup Professionals Musings

FEBRUARY 8, 2021

In my experience as an angel investor for new startups, I’m always surprised by how many entrepreneurs are looking for funding without outside advisors. For example, I once was approached by an entrepreneur, passionate that his new algae strain would cure world hunger and make him rich. Bandwidth is a constraint we all feel.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

SEPTEMBER 12, 2014

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Hearpreneur

MARCH 4, 2022

Being in love with your business, when you’re an entrepreneur, is even better. Although there are days when tossing in your hat seems like a viable option, remembering how much you love your “job” can quickly snap an entrepreneur out of that mentality. When you're an entrepreneur, you have to make a lot of compromises.

Entrepreneur 124

Entrepreneur Technical Review Restful Colorado 124

Hearpreneur

DECEMBER 10, 2023

Often entrepreneurs and business owners create their New Year’s Resolutions around their businesses. We asked entrepreneurs and business owners to share their business goals and what they were looking forward to in 2024. It’s almost new year and right after the ball drops, it’s time to go to work.

Technical Review 134

Technical Review Entrepreneur Artificial Inteligence Affiliate 134

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. Need to spread the risk.

Bootstrapping 252

Bootstrapping Sweat Equity Entrepreneur Technical Review 252

Startup Professionals Musings

MAY 25, 2020

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

FEBRUARY 27, 2021

More and more entrepreneurs are hearing about the successful graduates and investors queued behind a few well-known startup incubators, including Y Combinator, TechStars, and the Founder Institute. In my view, the quality of incubator leadership is the single biggest potential value provided and learning opportunity for entrepreneurs.

Incubator 366

Incubator Technical Review Due Diligence Venture Capital 366

Startup Professionals Musings

OCTOBER 6, 2023

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Startup equity investments imply a long-term business relationship, lasting an average of five years.

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Technical Review Due Diligence Term Sheet Bankruptcy 296

Up and Running

NOVEMBER 12, 2014

Are you an emerging entrepreneur with an underfunded venture? Then, the unveiling of the Securities and Exchange Commission’s proposed equity crowdfunding rules reveals a panacea for growing your business’s coffers. Equity crowdfunding vs. donation crowdfunding. Could your business flourish with a gush of money and hype?

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Equity SEC Technical Review Security 125

Startup Professionals Musings

FEBRUARY 8, 2013

Most entrepreneurs work long hours and weekends to get the job done. Good partners are people who are confident in their own abilities, and willing and able to make decisions, take responsibility for their actions, and able to provide leadership, rather than require leadership. Compatible work styles.

Partner 258

Partner Software Review CTO Hire Equity 258

Startup Professionals Musings

NOVEMBER 1, 2014

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage Angel investors. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

Entrepreneur 266

Entrepreneur Advisory Board Dividend Angel Investor 266

Startup Professionals Musings

JUNE 20, 2016

Thus the top priority of every entrepreneur who wants funding should be to build and highlight their “dream team” of co-founders, executives and advisers, to attract the biggest and best investors. Solo entrepreneurs rarely find an investor. Investors talk to each other and they love warm introductions to up-and-coming entrepreneurs.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Software Review 152

Feld Thoughts

MARCH 5, 2021

The Techstars Foundation recently announced a new program called Accelerate Equity. Since then, the Techstars Foundation has been investing in and accelerating nonprofits that deliver scalable impact for underestimated entrepreneurs. Grid 110 – pathways to success for entrepreneurs in LA Knox St. Studios to the list.

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Equity North Carolina Early Stage Distribution 163