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. This question gets to the heart of what bank financing is and isn't supposed to accomplish. Bankers do not contribute equity.

Equity 303

Equity Silicon Valley Finance Early Stage 303

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

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

OCTOBER 13, 2013

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. 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 donations.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. This leads to the problem of “herding cats&# for entrepreneurs raising angel money. Photo credit: D. Blanchard/O’Reilly Media. and not a min.

Finance 286

Finance Term Sheet Technical Review Warrant 286

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. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

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

Both Sides of the Table

DECEMBER 11, 2022

Almost no financings, many VCs and tech startups cratered for the second time in less than a decade following the dot com bursting. I was in it for the love of working with entrepreneurs on business problems and marveling at technology they had built. Starting in 2009 I began writing checks consistently, year-in and year-out.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

YoungUpstarts

JUNE 7, 2018

One of the biggest challenges facing startup businesses is getting adequate financing – without hobbling future performance. It’s not just an issue of knowing where to start and what options fit best with the entrepreneur’s personal and business circumstances, cash needs and credit rating. Of course not.

Entrepreneur 124

Entrepreneur Incubator Finance Canada 124

Startup Professionals Musings

FEBRUARY 8, 2013

Most entrepreneurs work long hours and weekends to get the job done. Look at the big picture first of development, finance, and marketing/sales. Compatible work styles. If you team with a partner who likes sleep until late morning, and reserves the weekend for other activities, the partnership will likely not work.

Partner 258

Partner Software Review CTO Hire Equity 258

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

Startup Professionals Musings

JUNE 30, 2019

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. Use crowd funding.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

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?

Equity 125

Equity SEC Technical Review Security 125

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. Need to spread the risk.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

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 129

Entrepreneur Technical Review Restful Colorado 129

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. Need to spread the risk.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

The Startup Magazine

AUGUST 11, 2023

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits.

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

Up and Running

AUGUST 30, 2021

The outdoor industry wasn’t helping itself, so he did what all entrepreneurs do: start a business to solve the problem. It’s difficult to be an entrepreneur — whether you’re a recent college graduate or have managed multiple companies. It’s why the average age of an entrepreneur is 42 years old. Solve the rest later.

Entrepreneur 132

Entrepreneur Lean Colorado Engineer 132

Startup Professionals Musings

JULY 8, 2015

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.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

David Teten

MARCH 14, 2018

– Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. – Create a franchise and license access to it , e.g., the Draper Venture Network.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

The Startup Magazine

FEBRUARY 21, 2024

TEC is one of Canada’s largest and most experienced private credit firms, specializing in providing asset-based capital solutions to companies that are underserved or overlooked by traditional sources of financing, primarily banks. The firm has made more than $4.5 The firm has made more than $4.5

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

The Next Web

NOVEMBER 20, 2013

There are a lot of variables to go into calculating a fair equity split a startup team. The calculation comes as follows: original 50/50 diluted down 20 percent to 40/40 for the financing, and then the one funding founder gets that 20 percent. To me, that is no different than financing the business.

Cofounder 136

Cofounder Equity Founder Seed Stage 136

YoungUpstarts

NOVEMBER 22, 2019

Apart from a brilliant idea, finance is an important factor for starting a business. In this post, we’ve summarised the top 8 sources of finance for small businesses. A traditional bank loan is one of the first sources most entrepreneurs turn to. Self-financing. Self-financing is another popular source of financing.

Finance 194

Finance Small Business Angel Investor Exit Strategy 194

YoungUpstarts

APRIL 7, 2016

Moreover, startups don’t necessarily face the same issues other business models do – although finances may plague more than less – with trouble-shooting having now entered unchartered territory. A Startup Lab invests guidance, strategy, and takes equity in a carefully selected collection of early and seed stage startups.

Seed Stage 100

Seed Stage Silicon Valley Incubator Asia 100

Hearpreneur

JANUARY 1, 2023

We asked entrepreneurs to share how they will prepare for the bad economy and here is what they have to say. #1- Make a budget and keep a close watch on the finances , ensuring that there are no unnecessary expenses. Thanks to Corey Philip, Acumen Equity Advisors ! #7- 1- Make a budget. Photo Credit: Abdul Saboor.

Entrepreneur 96

Entrepreneur Software Review Technical Review Revenue 96

www.entrepreneur.com

SEPTEMBER 22, 2011

Follow Entrepreneur on Facebook Follow Entrepreneur on Twitter Follow Entrepreneur on LinkedIn Subscribe | Mobile. Startup Basics Does College Matter for Entrepreneurs? Financing Some Jobs Act Proposals Make Headway. Branding From Entrepreneur to Icon in Five Steps. What is Sweat Equity Worth?

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

SEPTEMBER 20, 2017

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)?

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

YoungUpstarts

MAY 27, 2019

Many young entrepreneurs are focused on the superficial belief that the more money they raise, the more successful their business is going to be. Other businesses fail because they raise the wrong kind of money, such as debt they can’t repay on time or equity that causes them to lose control of their business. She raised $900 million.

Cofounder 170

Cofounder Private Equity Software Review Equity 170

ReadWriteStart

JUNE 28, 2019

However, out of all startup funding options, the two most popular methods are Loan and Equity. The post Business Loan vs Equity Financing: How to Fund Your Startup appeared first on ReadWrite.

Equity 113

Equity Finance Startup Entrepreneur 113

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. Need to spread the risk.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

Up and Running

DECEMBER 1, 2015

Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. In this article, I’m going to examine: What equity compensation is. Different types of equity compensation.

Equity 60

Equity Employee Stock Options Vesting 60

The Startup Magazine

SEPTEMBER 10, 2020

Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. It also offers debt financing to middle-market companies making anywhere from $150 million to $1.5 Main Street Capital.

Dividend 89

Dividend Stock Finance Private Equity 89

The Startup Magazine

SEPTEMBER 21, 2021

The primary goal of any corporate firm is to benefit from the business’s finances while operating at its maximum capacity. Entrepreneurs often feel like spending too much time sorting out the finances can lead to a halt in developing innovative ideas for the growth of the business.

Finance 156

Finance Balance Sheet Operations Framework 156

The Startup Magazine

MARCH 30, 2022

This is where growth financing options come into play. So what is it exactly, and to what extent can you finance the growth of your startup using it? A quick overview of growth financing. Tip: carefully review your financing options. The scope of growth financing products. The advantages. Final thoughts.

Finance 135

Finance Dilution Green Revenue 135

YoungUpstarts

MARCH 4, 2019

Though personal income taxes will usually not be due until the middle of April, organizing your finances at the end of each year is an absolute necessity. Balancing Assets, Liabilities, and Owner’s Equity. The formula that your business ought to use for a balance sheet — without exception — is assets= liabilities + equity.

Balance Sheet 172

Balance Sheet Software Review Equity Cofounder 172