What Seed Financing Is For

A VC : Venture Capital and Technology

Marc Andreessen posted a tweetstorm last week and he talked about how to think about seed financings and how they lead into Series A and Series B rounds. I think of building a startup and funding it as walking up a flight of stairs. I think that’s what seed financing should be used for. Feature request for Twitter: Please make it possible to permalink to and embed a tweetstorm. You can call this the @pmarca feature.

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Crowdfunding is rapidly becoming the major source of funding for seed-stage startups. Startup incubator seed funding.

Trending Sources

Hire a VP Finance Sooner Rather Than Later

Feld Thoughts

The post is aimed at CEOs of startups who have at least 15 employees. If you don’t have a VP Finance on your team reporting to you, do yourself, your team, and your investors a favor and go hire one right now. I don’t care whether you call the person a VP Finance or VP Accounting. This should be someone who has been in at least two startups prior to joining yours. You especially don’t want someone who is trying to break into the startup game.

When Does Invoice Financing Make Sense?

Up and Running

Bank, 82 percent of startup and small business failures can be traced back to cash flow mismanagement. Let’s learn more about invoice financing, discuss your options, and see why it’s so important. What is invoice financing? Should you consider invoice financing?

4 Creative Ways To Finance Your Growing Business

YoungUpstarts

Full disclosure – any kind of financing comes with costs, whether it’s interest payments, equity, and/or your very valuable time which, as an entrepreneur, is the thing you will always wish you had more of. Purchase order financing.

Finance Fridays

Feld Thoughts

Their suggestion was to write a series of posts that follows the development of an imaginary startup as the company navigates various events, focusing on how each event will impact not only the P&L, but also the Balance Sheet and Cash Flow Statement. They suggested we call this “Finance Fridays&# to bookend Fred’s MBA Monday’s – I checked with Fred to see if he was ok with this and his response was “Hell yes. Finance Fridays finance fridays

Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

It will make follow-on financings much harder and people will have to consider whether or not to do inside rounds. Startup Lessons

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New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Early-stage startup. Lean startup.

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Convertible Debt Financing. Let us assume there was a financing of $1.5m

14 ways to bootstrap finance your startup

The Next Web

Sourcing capital for your startup is never easy, especially when you are pre-product completion and before the proof-of-concept the traditional venture investors are looking for. Entrepreneur advice startup

New Early Stage Financing Options for Entrepreneurs

Gust

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Early-stage startup. Lean startup.

When Financings Fall Apart

Ask The VC

The greatest revenge is to execute like hell, bootstrap all the way, and do what we said we’d do – become Seattle’s next billion-dollar startup, and make the world of marketing a better place. Fundraising financing fundraisingRand Fishkin, the CEO & co-founder of SEOmoz, has an long, thorough, and incredibly detailed blog post up about The $24 Million Moz Almost Raised.

Convertible Notes for Startup Financing

Early Growth Financial Services

While investors in some less well-developed startup hubs are still largely resistant to using convertible notes and some angels prefer priced rounds, according to SEEDCHANGE’S Kevin Smith, 93% of early-stage rounds in coastal startup hubs use convertible notes.

Sizing Option Pools In Connection With Financings

A VC : Venture Capital and Technology

What I like to do, as I mentioned in the post I linked to, is agree with the entrepreneur that the option pool will have enough unissued options to fund all the hiring and retention grants that need to happen between the current financing and the next one. Then we'll do the same thing at the time of the next financing. If the financing is $1mm, it's not going to be that many. We've talked about this issue before here at AVC.

Financing your business: Debt vs Equity

StartupCFO

So what I would like to do here is layout a more comprehensive framework for the pros and cons of debt versus equity and when you could look at each for financing your business. Therefore, this is often not the starting point for financing your business. Deciding how to finance.

The slowdown in equity financing is changing venture debt too

Version One Ventures

that provide venture debt to a start-up often with the expectation that the start-up can pay back that debt with its next round of equity financing. When the equity financing market was hot, the banks got much more aggressive in handing out venture debt: they wrote larger cheques, made their loans cheaper, got more creative in lending, and extended credit to companies in earlier stages. News startup financing venture debt

Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

This post is the third part of a three-part primer on convertible note seed financings. Part 1, entitled “ Everything You Ever Wanted To Know About Convertible Note Seed Financings (But Were Afraid To Ask) ,” addressed the basics.

Paperless Financing Docs

A VC : Venture Capital and Technology

I've been on a mission to dramatically reduce the legal costs of a venture financing. But we are still seeing company counsel costs of $15k or more on venture financings even with our "no negotiation" approach. I'd like to see venture financing legal fees get to $5k or less. I am going to find out if we can use Docracy on our next venture financing to make things more efficient.

Playing Startup

Agile VC

I’ve observed what may be an emerging trend, at least in some startups, that I find somewhat unsettling. But I think it’s important to discuss, particularly given today’s heady environment for startups. The post Playing Startup appeared first on AGILEVC

Playing Startup

View from Seed

I’ve observed what may be an emerging trend, at least in some startups, that I find somewhat unsettling. But I think it’s important to discuss, particularly given today’s heady environment for startups. But I’ve witnessed more and more “playing startup” in recent months.

Little Data – Insurance, finance and digital footprints

Start Up Blog

This means that in a data driven economy, areas that previously did not affect insurance and finance industries are starting to. Data Driven Insurance: Real Data versus Actuarial Estimations will change the approach to costing all forms of finance and insurance.

Does Alternative Finance Exist In Singapore And Hong Kong?

YoungUpstarts

by Anthony Coundouris , trade finance evangelist for ApexPeak. Alternative finance has grown slowly in these countries, because both are the historical treasurers of Asia. In Asia Pacific, the volumes in alternative finance have come from South Korea and China.

Securing Startup Financing for Tech Companies

Early Growth Financial Services

We compiled the top audience questions and answers: How is getting funding from VCs different from obtaining financing from other types of investors? This guest post was contributed by BJ Lackland, CEO of Lighter Capital. Recently Lighter Capital and VentureBeat teamed up to host a Fundraising Roundtable webinar examining fundraising options for tech companies.

5 Myths That Could Seriously Damage Your Startup Finances

Early Growth Financial Services

There are many things that entrepreneurs don’t know about startups—and an equal number of things that they think they know, but about which they are wrong! Some common startup myths have frequently been debunked, like how running your own company will give you freedom (yeah, right!) And then there are those startup insights that seem to linger and gain traction over the years.

Series AA Equity Financing Documents

ycombinator.com

Series AA Equity Financing Documents Y Combinator and Wilson Sonsini Goodrich & Rosati are happy toannounce the Series AA Equity Financing Documents. Their goal is to makeangel funding rounds for startups easier for both sides.

6 Smart Money Tips For Startups

YFS Magazine

Finance Grow bookkeeping business finance money money management small business accountingWith planning, dedication, and an emergency fund you can prepare to weather many financial storms and build your new business into a lasting venture.

The Biggest Financing Mistake Startups Make

Growthink Blog

This is arguably the worst small business financing strategy: The entrepreneur develops what they believe to be a sure-fire business plan that can't fail. If you take the time to ask one of these entrepreneurs about their startup period, what you learn may shock you.

Effective Ways To Obtain Small Business Financing

YoungUpstarts

Most businesses need startup capital to get up and running in order to properly sustain and grow their operations. In situations like this, small business financing is typically the best way to get a cash infusion to make it possible to run your company during the early growth stages.

SBA 7

Your Blog as a Startup: Tips to Manage Your Finances and Make Money Blogging

Blogtrepreneur | Entrepreneur Blog

Your blog really is like a startup business. Startup entrepreneurs and bloggers have many similarities; both need to generate leads and sales to make and grow their income. Just as important, they need to manage their finances in order to thrive in the long term.

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Notes on raising seed financing

Chris Dixon

I’ve written ad nauseum on this blog (see contents page) about venture financing so hadn’t planned to blog more on the topic. successful fashion people investing in a fashion-related startup). As Paul Graham says : By far the biggest influence on investors’ opinions of a startup is the opinion of other investors. Follow investor/startup people on Twitter (Sulia has some good lists to get you started here and here ). startups venture capital

How Much Stock Should Startups Dole Out?

YFS Magazine

Finance Grow employee stock options money raising capital raising startup capital stock optionsOne of the toughest compensation-related questions that founders and executives face is that of granting stock to key employees, board members, advisors or consultants.

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10 More Creative Ways to Finance Your Startup

Startup Professionals Musings

Every startup needs access to capital, whether for funding product development, for initial rollout efforts, acquiring inventory, or paying that first employee. Thus “creative” really means maximizing non-bank financing. We all know startups that have been built on one or both of these.

10 Finance Tips for Very Early-Stage Startups

Early Growth Financial Services

While your focus is understandably on immediate survival and how you can hit your first big hurdles, what else should you be thinking of, especially where your finances are concerned? But it’s much easier to establish your system from the get-go, rather than to try to roll over your accounting into a system at later date when your finances become more complex. So your company’s in its very early stages. We’re talking a skeleton crew of staff, minimal sales, and even less cash.

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business. However, Jane was in a position to invest some of her savings into the startup.

Series Seed Financing Documents

www.seriesseed.com

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing.   Of course, one could argue, that I’m just not taking comments I disagree with (or that nobody cares enough to comment), but I am of the opinion that these documents represent the 95% consensus of what should be in a very basic set of equity financing documents. 

Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

The most successful serial entrepreneurs in the world may found three or four, perhaps even eight or ten venture-backed startups over the course of their careers. It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.).

Behind the Scenes of Startups: Finance Overview (Video)

Early Growth Financial Services

Check out my financial strategy overview for startups, presented for The Design Business. This short video includes a good overview of startup finances including important tips and advice for startup accounting and finance. Have any questions about startup finance or accounting? Let us know in comments below or contact Early Growth Financial Services with your questions.

Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

I recently wrote about my views that startups rounds should be priced. But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats.

From Zero To $1 Million In Revenue: 16 Startup Lessons We Learned

YFS Magazine

Launch Finance money starting a business startup lessonsHere's a look at key lessons we learned growing from zero to $1 million in revenue.

The Resetting of the Startup Industry

Both Sides of the Table

Much has changed in the past four months of the technology startup world and how outsiders value the business. The terrible consequence is that some great companies struggle to get financed. It applies to all startups – not just SaaS. Startup Lessons