Startup Professionals Musings

SEPTEMBER 12, 2014

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. Equity investments are not loans, so there is no loan payback period or interest payments.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Startup Professionals Musings

FEBRUARY 19, 2012

There are two very real and practical reasons why you need to plan an exit: Outside investors want to collect their return. Remember that equity investments are not like loans with interest. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A).

Exit Strategy 241

Exit Strategy Initial Public Offering IPO Startup 241

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . 9) Time, market, and exit investment.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

SEPTEMBER 20, 2017

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 132

Angel Investor Equity Technical Review Exit Strategy 132

Startup Professionals Musings

SEPTEMBER 30, 2012

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Their synopsis of the key risks should make you look hard for an alternate exit strategy: Increased risk of liability.

Exit Strategy 239

Exit Strategy IPO Investment Bankers Entrepreneur 239

Startup Professionals Musings

JUNE 2, 2013

I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

ReadWriteStart

JUNE 1, 2020

Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. These investments are made instead of shares or equity in your startup. Equity investors. The third source of funding is from equity investors. Stages of Equity-based funding. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

MARCH 3, 2021

Show that you anticipate this, how they will react, and how you have ongoing strategies to stay ahead. Present a viable exit strategy for investors to cash out. Equity investors realize that they won’t see any real return until an exit occurs, such as a sale, merger, or IPO.

Exit Strategy 406

Exit Strategy Merger Angel Investor IPO 406

Up and Running

MARCH 14, 2018

Is the investment you’re seeking a convertible note, an equity round, or something else? Your exit strategy. If you’re seeking large sums of investment capital (over $1M), most investors will want to know what your exit strategy is.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

OCTOBER 8, 2023

Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes. Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Opportunity sizing and financial projections must be credible.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

Startup Professionals Musings

FEBRUARY 15, 2015

Angel investors and venture capitalists don’t make equity investments in non-profits. 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. donation equity grant investment non-profit philantropy startup'

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Startup Professionals Musings

OCTOBER 7, 2022

Ancillary objectives, like retiring existing debt, buying a building or paying salaries to people with equity ownership will not get traction. How much equity ownership are you willing to offer? Equity investors typically look for 10 times return projections, since they expect many of their investments to fail totally.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

JULY 5, 2023

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Sometimes these will ask for 5%-15% of your equity for their support services. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

SEPTEMBER 15, 2012

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.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

AUGUST 23, 2021

Yet, I find that most of us don’t have the financials for that option, so we must share the equity, control, and reward, and rely on funding from family, friends, and professional investors. What do you see as your legacy and exit strategy? How do I assign responsibilities and compensation?

Startup 399

Startup Exit Strategy Cofounder Equity 399

Startup Professionals Musings

JULY 3, 2011

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.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

www.inc.com

SEPTEMBER 24, 2011

Pricing Strategy. Exit Strategies. Strategy and Planning. Growth Strategies >. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. But sharing equity can have pitfalls, too.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

discuss.joelonsoftware.com

NOVEMBER 1, 2010

where I can learn about how to build a sweat equity team? Rather, it is a proposal for sweat-equity investors. Im confident that this business will be able to compensate these two additional principles along the way, after initial risk of investing their time, and will later reward their vesting with an exit strategy.

Sweat Equity 40

Sweat Equity Equity Angel Investor Affiliate 40

YoungUpstarts

NOVEMBER 17, 2016

It’s been about three months since equity crowdfunding was opened up to all Americans. This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies. The entrepreneurs I mentor ask me frequently about equity crowdfunding. Disclosures.

Equity 100

Equity United Kingdom Cap Table Oklahoma 100

www.inc.com

SEPTEMBER 24, 2011

Pricing Strategy. Exit Strategies. Strategy and Planning. Strategy and Planning >. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says. Office and Operations. Legal Issues. Industries.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

JANUARY 4, 2020

Ancillary objectives, like retiring existing debt, buying a building or paying salaries to people with equity ownership will not get traction. How much equity ownership are you willing to offer? Equity investors typically look for 10 times return projections, since they expect many of their investments to fail totally.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

OCTOBER 12, 2020

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Sometimes these will ask for 5%-15% of your equity for their support services. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

Startup Professionals Musings

MARCH 11, 2016

Remember that angel investors are buying equity in your business, so they are not impressed with a customer presentation. The business plan should address all key questions, including valuation, funding needed, use of funds and exit strategy. Have a full business plan and financial model to close the deal.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

JANUARY 2, 2013

Is the investment you’re seeking a convertible note, an equity round, etc.? Your Exit Strategy : If you’re seeking large sums of investment capital (over $1M), most investors will want to know what your exit strategy is. Will you need to raise multiple rounds of financing?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

Startup Professionals Musings

OCTOBER 14, 2016

Don’t be afraid to give up equity to get a small share of a very large pot. Credible yet flexible exit strategy. It may be time to bring in a new executive team with visible integrity and a sterling track record, or round up some new advisors who have connections with the venture community.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

Startup Professionals Musings

JANUARY 27, 2021

Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes. Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Opportunity sizing and financial projections must be credible.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

NOVEMBER 4, 2011

The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Line up an experienced team.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

JUNE 6, 2010

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.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

www.instigatorblog.com

OCTOBER 23, 2010

Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. 1% but they’re not going to be overwhelmed by it, or insanely incentivized by that equity alone. I do believe that early employees should trade salary for equity.

Equity 41

Equity Employee Startup Vesting 41

Startup Professionals Musings

SEPTEMBER 23, 2010

The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Line up an experienced team.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

YoungUpstarts

NOVEMBER 22, 2019

You can extend this pool of funds by taking out a home equity line of credit. You can ask them to become equity investors in your business or you can ask them to extend a business loan. When approaching angel investors, keep your pitch to the point and always present an exit strategy. Crowdfunding.

Finance 194

Finance Small Business Angel Investor Exit Strategy 194

Up and Running

AUGUST 28, 2018

Your funding ask and exit strategy, if applicable. Exit strategy : You only need this if you’re seeking outside investment. Common exit strategies include being acquired by another company, the sale of equity, or a management or employee buyout. Your operations plan. Your team and company information.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Startup Professionals Musings

DECEMBER 28, 2018

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Sometimes these will ask for 5%-15% of your equity for their support services. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

Startup Professionals Musings

JANUARY 5, 2011

There are two very real and practical reasons why you need to plan an exit: Outside investors want to collect their return. Remember that equity investments are not like loans with interest. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A).

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Their synopsis of the key risks should make you look hard for an alternate exit strategy: Increased risk of liability.

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

SoCal CTO

APRIL 8, 2010

- Startup Company Lawyer , March 14, 2010 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. I do sometimes get impatient when the investment proposal has little or no information on the exit path.

Software Review 150

Software Review Startup PR Exit Strategy 150