How To Raise Seed Money Right (And Wrong)

YoungUpstarts

I need to admit to a personal bias right up front: I am not the biggest fan of borrowing seed money. In fact, when I founded Fit Body Boot Camp , I never took a single of cent of seed money, mainly because I wanted to maintain total control of my vision.

Don’t Forget Grants If You Need Early Seed Money

Startup Professionals Musings

In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Professional help costs money.

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Don’t Forget Grants If You Need Early Seed Money

Gust

In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. If you meet all the requirements, complete all the paperwork, and submit your grant application today, it will likely be six to nine months before you see any money. Professional help costs money.

A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

Provide some sort of seed capital to their founders. Take a small amount of equity (usually ~6%) and overall have terms that are favorable to entrepreneurs. Have a strong management team who are typically proven entrepreneurs. Accelerators business david cohen entrepreneur global accelerator network Seed money TechStars United States Venture Capital

What every entrepreneur should know about financing right now

Version One Ventures

The ability to raise money no longer determines one’s fate. More money is flowing in from a new crop of angels, newly wealthy from a number of tech IPOs. And, we should expect angel activity to drop as new angels discover that returns from their seed investments aren’t so easy to come by. Any entrepreneur trying to navigate the financing landscape should be aware of the over-abundance of angel money compared with subsequent rounds.

8 Key Actions for Entrepreneurs Needing Early Money

Startup Professionals Musings

Most entrepreneurs have learned that it’s almost always quicker and easier to get cash from someone you know, rather than Angel investors or professional investors (VCs). On the other hand, if you open every conversation with “I need money,” you won’t have any friends or any money.

How to deal with the Series A crunch

Version One Ventures

With headlines declaring that more than 1,000 seeded startups will soon be orphaned, it’s only natural that startups are concerned about the future funding landscape. Seed financing grew from 89 fundings in Q1 2009 to more than 500 in Q3 2012. That means there are a lot more seeded startups out there: an excess demand for a limited supply of Series A financings. I recently had lunch with an entrepreneur who asked what he should do.

Build Entrepreneur Credentials Early and Wisely

Gust

Many believe that entrepreneurs are born, not made. While I agree that successful company builders usually have a natural inclination to be entrepreneurs, a good education helps polish that apple. The bigger question, then, for an entrepreneur, is not “Should I go to college?”

Most Great Entrepreneurs Don’t Drop Out of Harvard

Startup Professionals Musings

Many believe that entrepreneurs are born, not made. While I agree that successful company builders usually have a natural inclination to be entrepreneurs, a good education helps polish that apple. The bigger question, then, for an entrepreneur, is not "Should I go to college?"

Booming Companies That Should Inspire Entrepreneurs

Blogtrepreneur | Entrepreneur Blog

Every huge company started out as an entrepreneur with an idea and the willingness to work hard to reach his or her dream. Uber Uber started out as a small San Francisco business that managed to generate $200,000 in seed money in 2009.

Entrepreneurshit. The Blog Post on What It’s Really Like.

Gust

It’s what life was like as an entrepreneur. But this is nothing like the stress of being an entrepreneur. What’s it really like being an entrepreneur? You probably follow some high-profile entrepreneurs on Instagram and Twitter and see conference pictures of them in Davos, Mexico, Monaco or wherever. There is a difference between a Conference Ho and a successful entrepreneur. As a startup founder you rarely have much money in your bank accounts.

Monaco 101

8 Guidelines For Friends And Family Startup Funding

Startup Professionals Musings

Most entrepreneurs have learned that it’s almost always quicker and easier to get cash from someone you know, rather than Angel investors or professional investors (VCs). On the other hand, if you open every conversation with “I need money,” you won’t have any friends or any money.

Entrepreneurshit. The Blog Post on What It’s Really Like.

Both Sides of the Table

It’s what life was like as an entrepreneur. But this is nothing like the stress of being an entrepreneur. What’s it really like being an entrepreneur? There is a difference between a Conference Ho and a successful entrepreneur. Raise money. Need money.

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

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. ” They are running out of money. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless.

Busted or Confirmed? 3 Common Myths About Starting A Business

crowdSPRING Blog

That is why it is imperative for entrepreneurs to critically examine all advice and “truths” about startups. Fortunately, many startup myths revolve around three common topics (business plans, money, and unnatural hustle). Successful entrepreneurs move quickly.

Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?

Gust

That said, the primary entrepreneur-friendly reason for doing a Convertible Note (and the reason that no serious investor under regular circumstances will therefore do an uncapped note) is: The valuation negotiation is put off until the next round. Assuming the company is able to make effective use of the seed money to greatly increase the value of the enterprise, all of that value therefore accrues to the founder, rather than the investor.

Entrepreneurs that Got Filthy Rich in 2011

Inc Startups

Mark Zuckerberg isnt the only entrepreneur good at making bank. Heres a look at the 9 entrepreneurs and (and one investor) that got filthy, stupid, absurdly rich in 2011 by cashing out or going public. Mark Zuckerberg isn’t the only entrepreneur good at making bank.

Seed and Later Investments for Startups are Booming

Startup Professionals Musings

The number of startups getting seed funding in 2012 jumped by 65% over the previous year to a total of 1749, according to a recent report by CB Insights. Seed investments” are early stage financings (typically less than $1.5 Seeded companies will take longer to raise a next round.

A Compilation of the Web's Best Advice for Entrepreneurs

Platforms and Networks

skip to main | skip to sidebar Platforms and Networks Thoughts about platforms, network effects and entrepreneurship Wednesday, November 25, 2009 A Compilation of the Webs Best Advice for Entrepreneurs Below, I link to blog posts and other online resources that offer advice for entrepreneurs. There is another list for startup entrepreneurs and angels at: [link] December 14, 2009 4:22 PM James Taylor said.

Early-Stage Startups Need Friends, Family, and Fools

Startup Professionals Musings

Most entrepreneurs have learned that it’s almost always quicker and easier to get cash from someone you know, rather than angel investors or professional investors (VCs). On the other hand, if you open every conversation with “I need money,” you won’t have any friends or any money.

Revisited: big VCs investing in seed rounds

Chris Dixon

A few years ago, the trend of companies raising smaller seed rounds combined with the emergence of new seed funds caused many big VCs to create seed investment programs. This triggered a debate among entrepreneurs and investors about whether it was risky for seed-stage companies to take small investments from large VCs. (I The second nuance can be counterintuitive: the danger of taking seed money is positively correlated with the reputation of the firm.

Mile-High disruption: Why Denver should be on your tech radar next year

The Next Web

Entrepreneur Insider United States Analysis and Opinion Stuart Wall, CEO of Signpost , a local advertising platform funded by Spark Capital and Google Ventures.

How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

In our industry we applaud the efforts for entrepreneurs to have tried and we know that today’s failure can bring the experience for tomorrow’s success. Most of this advice boils down to an argument in favor of basic planning before starting a company or raising money. In many ways the fact that it has become so cheap to start a company and relatively cheap to raise angel/seed money that we as an industry have gotten lazy on basic planning.

How the Seed-Stage VC Trend Began, The Downsides of Unicorns & Much More

Both Sides of the Table

*. If you are a 20-something tech entrepreneur you could be forgiven for thinking that seed-stage investors, Angellist Syndicates and widely available angel money always existed. I was out to raise my first seed money in my second startup of $500,000.

10 Reasons Why Capital Shouldn't Make Or Break Your Startup

Startup Professionals Musings

The caveat is that these young entrepreneurs have to drop out of college to do it. Having no money can help you plan. With a bank account full of someone else's money, it's hard not to feel flush with cash and have a false sense of security.

Designing a Corporate Entrepreneurship Program – A Qualcomm Case Study (part 1 of 2)

Steve Blank

The bootcamp requested that participants do what entrepreneurs do before requesting seed funding – Discover, Network and Accelerate. (In I ran into Ricardo Dos Santos and his amazing Qualcomm Venture Fest a few years ago and was astonished with its breath and depth.

The Corrosive Downside of Acquihires

Both Sides of the Table

And a few teams of super talented, educated and bright entrepreneurs make a few mill. Let’s assume $2 million in seed money. They founded their last company with no money in their pocket. It says if you want to make “real” money - quit.

Designing a Corporate Entrepreneurship Program – A Qualcomm Case Study (part 1 of 2)

Steve Blank

The bootcamp requested that participants do what entrepreneurs do before requesting seed funding – Discover, Network and Accelerate. (In I ran into Ricardo Dos Santos and his amazing Qualcomm Venture Fest a few years ago and was astonished with its breath and depth.

3 Reasons To Seek Only What You Need During The Funding Process

YoungUpstarts

For new or young entrepreneurs, understanding the realities of the startup world often comes as a shock. Some entrepreneurs will choose to bootstrap their venture the best they can, while others will turn to trendier options such as crowd funding or a startup accelerator to get off the ground.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

This is part of my series on what makes an entrepreneur successful. I originally posted it on VentureHacks , one of my favorite websites for entrepreneurs. I started the series talking about what I consider the most important attribute of an entrepreneur : Tenacity.

Who exactly are angel investors?

Startup Economy

Early-stage VC : usually particiapates in Series A (and sometimes seed round on rare cases) to prove out the business model and test out the customer traction. Many entrepreneurs approach them with several slides thinking that they will take the risk of productizing a concept and end up hearing, "you are too early for early-stage investors like us". Angel groups and seed investors. Let's get some nomenclature out of the way.

6 Tips for Coming Up With Your Million-Dollar Business Idea

Up and Running

With my adolescent dreams up in flames, I decided to get back at my unsupportive mom and dad the only way I knew how: I became an entrepreneur. David sold his recording equipment for $50,000 and they borrowed the rest of their seed money from a bank.

5 Tips To Make Investors Beg You To Take Their Money

Blogtrepreneur | Entrepreneur Blog

To help you achieve this, Slide Heroes offers some solid pitch deck wisdom , including advice from top VCs and entrepreneurs like Guy Kawasaki, Dave McClure, Michael Wolfe, and Mark Suster. Venture capitalists and angel investors often provide between $250k-$1m in seed funding for startups.

Let's All Shed Tears For The Crappy Startups That Can't Raise Any More Money

readwrite.com

Share on: Let's All Shed Tears For The Crappy Startups That Can't Raise Any More Money. Lets All Shed Tears For The Crappy Startups That Cant Raise Any More Money. Well, nobody wants to give those dopes any more money. Sections. Social. Mobile. Enterprise. Cloud.

The Seed Signaling Problem That’s NOT Being Talked About

Seth Levine's VC Adventure

There’s been plenty of chatter over the past few years about the potential pitfalls for entrepreneurs taking seed money from VCs. This includes a recent and very thorough overview of the issues by Elad Gil which I’d highly recommend reading, even if you’re already familiar with the issues around seed financing (and in particular the so called “party round” where everyone takes a piece but no one takes the lead).

2009 VC Fundraising Strategy

Startup Economy

Investor shift focus on existing portfolio companies by allocating more follow-on reserve; thus, less money for new companies reduce risks in early/seed stage capital allocation set a higher bar in funneling investment opportunities advertisement-based business model is no longer a viable option for most companies in internet/mobile holds more negoting leverage on valuation. They might have more time "networking" with entrepreneurs now that the new deal is slowing down.

Why Kickstarter and crowdfunding can’t replace traditional investors

The Next Web

At this point, it seems like every other day celebrities and regular ol’ entrepreneurs are using the crowdfunding platform to raise needed capital. He quit his job to fulfill his orders and imagined starting a great new business from the seed money.

Why the New Seed Might Be a Bad Seed

This is going to be BIG.

About a year ago, I started hearing about the existence of a "pre-seed" round. The term "seed" implies the very beginning to me. If you can''t go to "seed" investors for your very first investment because you''re too early, that just seems weird to me.

Should Startups Care About Profitability?

Both Sides of the Table

I often ask entrepreneurs to consider, “What’s your objective? They both raised angel / seed money of $1.5 They used the money to hire a bigger tech team so they could roll out their second product line.

[Event] Global Entrepreneurship Week 2011 To Hit Record 123 Countries

YoungUpstarts

Global Entrepreneurship Week has become a launching pad for entrepreneurs everywhere, and this year we are expecting 10 million people to participate,” says Carl Schramm, president and chief executive officer of the Kauffman Foundation , which founded Global Entrepreneurship Week.