article thumbnail

What are the regulatory barriers preventing the emergence of a liquid market for equity in seed stage startups?

Gust

Parts of the answer are that (a) there are enormous regulatory requirements relating to secondary markets, and (b) there are no analysts tracking private company stocks.

article thumbnail

The Truth About Investor Updates

Haystack

Most folks who are not close to early-stage startups and new company formation would be surprised to discover that a high number of companies, after receiving funding from individuals or institutions, do not send updates to their investors. For me, I am pretty zen about this after six years of early-stage startup investment.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Pre-Series A Startup Boards

Austin Startup

It’s pretty well known that startups usually undergo a meaningful change in Board composition at their Series A round. Less has been written about what startup boards tend to look like before a Series A round. Know the difference between a Board Observer, Information Rights, and being a member of the Board of Directors.

article thumbnail

No Shelf Life: Why Selling Insurance May Be Right for You

Up and Running

While this is certainly true, there are also lots of us who know we have the drive and skills to run our own business if we could just decide on the right product or service to offer. The startup investment is minimal. Perhaps some of the highest costs of any new business are marketing costs. People are buying insurance online.

article thumbnail

Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

We all know that funding markets have changed for startups. I have blogged about some of the downside consequences of the changes and the private information I have says the consequences are much worse than is reported in the press since few people publicly talk about. Protect your financial information wisely.

SEC 352
article thumbnail

Landing Page Best Practices: Remove Distractions, Be Bold & Tell a Story

ConversionXL

The best way to get this information is to create a feedback loop that collects information right after they sign up, but before the course begins, so they’re fresh in the “I’m going to solve my problem” mindset. Mention your target market in your headline to make your value proposition instantly useful.

article thumbnail

What is convertible equity (or a convertible security)?

Startup Company Lawyer

Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. However, most typical convertible debt issued by startups have a maturity date of typically one year or later from the time of issuance. Background.