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. 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.

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Don’t Forget Grants If You Need Early Seed Money

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In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. 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. Money has always been tight for high-tech entrepreneurs who need to raise capital from investors willing to gamble on a new idea.

Sources of Seed Money

The Entrepreneurial Mind

Even thought money for entrepreneurial ventures is tougher to find than it was in the boom times, there still is money out there. Even seed stage ventures can find backing if they are patient, determined, and have a strong enough business model. Susan Schreter in an article at Business on Main identifies twenty seed stage funds from around the country. Business on Main sponsored post business on main seed funding susan schreter

A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

Provide some sort of seed capital to their founders. Accelerators business david cohen entrepreneur global accelerator network Seed money TechStars United States Venture Capital When David Cohen and I came up with the idea for the Global Accelerator Network (GAN) in 2010, we counted roughly 100 accelerator programs around the US that were founded following the Techstars model.

My.02 on VC seed money by David Lee

David Lee

Startup Seeks Angel: How to Meet Your Match

Wired Wired West

But you don’t have extra money to fund it. How Angel investor Business Funding General Assembly Investment Investor Los Angeles Marcus Filipovich Pasadena Angel pitch deck pitch investor Seed Funding Seed money Series A round Silicon Beach Startup company Tech Startups Venture capital You have a startup, or an idea for a startup, or a cousin with an idea for a startup. Nor do you have a ton of time if you want to keep your current job and the lights on.

The One Key to Seeding Your Disruptive Idea

Inc Startups

Everything you need to know about getting seed money and what qualifies your startup. Bringing Innovation to Market

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. Traditionally, I’ve advised startups to raise enough money to sustain them for 18 months.

How to Fund Your New Product Launch in 2017

Inc Startups

Need seed money for market proof? Here's where you can find it

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.

How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. What are they really looking for?

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.

How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

We also know that even though many of us who are experienced in startup successes & failures look at businesses and say, “That will never work” (as many people said about Uber) or “You can’t make any money in that business” (as many said about WhatsApp or Dropbox) and of course some entrepreneurs pull off extraordinary things we never thought possible. Many startup businesses – tech or otherwise – fail.

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.

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.

8 Guidelines For Friends And Family Startup Funding

Startup Professionals Musings

Since they don’t know you (yet), their first integrity check on you as a person is whether your friends and family believe in you strongly enough to give you seed money for your new idea. Don’t take money from family or friends who can’t afford to lose it.

Doing The Right Thing In A Recap

Feld Thoughts

Six weeks ago I wrote a post titled The Silliness Of Recapping Seed Rounds. My answer was simple – I would have given the early seed investors some percentage of the company as part of the financing. Given the amount raised, the new financing, and the cap, I would have asked the seed investors to waive the terms and instead accept a smaller percentage of the company than they would have otherwise gotten. Investments fg angels recap seed

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

Let’s assume $2 million in seed money. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If Get some famous angel or seed money.

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

Gust

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. For example, let’s say the “real” value of a startup is $900,000, a seed investor puts in $100,000 on a Convertible Note with a 20% discount, and the company then raises a Series A round of $1 million at a $4 million ‘pre-money’ valuation.

Why You’re Not Getting the Most out of Your Board

Both Sides of the Table

If you’re a venture-backed tech company or even an early-stage business fueled by angel or seed money I assume you have a good group of board members or advisors who will give you time to be helpful and they want to be helpful.

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. Angel groups and seed investors. Angel/Seed investors : It's important to realize that different between angel groups and angel investors. Tags: Series A round Investment Business Seed money Angel investor venture capital Let's get some nomenclature out of the way.

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. Tags: Investment Seed money business model venture capital early stage

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

Up and Running

David sold his recording equipment for $50,000 and they borrowed the rest of their seed money from a bank. Beth developed her own intensive curriculum and, with the help of seed money from a student, founded YogaFit® in 1994 to fill the niche.

8 Key Actions for Entrepreneurs Needing Early Money

Startup Professionals Musings

Since they don’t know you (yet), their first integrity check on you as a person is whether your friends and family believe in you strongly enough to give you seed money for your new idea. Don’t take money from family or friends who can’t afford to lose it.

I’m starting a Mastermind Group – who’s up for it?

47 Hats

A quick google makes it clear more than a few people have tried to make money one way or another out of Mastermind Groups.

5 Tips To Make Investors Beg You To Take Their Money

Blogtrepreneur | Entrepreneur Blog

If that’s your situation, you want to focus on obtaining seed money first, and there are plenty of investors who specifically look for places to invest seed money. Venture capitalists and angel investors often provide between $250k-$1m in seed funding for startups.

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

Gust

As a startup founder you rarely have much money in your bank accounts. Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Sign up customers who are paying you money for a service you can’t 100% guarantee is going to be operational for the full period that they’re expecting. Raise money. Need money. More money. Yes, please give me money.

Monaco 101

Traction vs. Product

Rob Go

I’ve had a couple conversations with other investors recently around what a seed stage company needs to achieve to raise a series A. Instead, what I often see is that the minute seed money is in the bank, founders try to staff up very quickly.

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

YoungUpstarts

The startup scene is not short on fun ideas like Yo, but without the ability to justify the amount of money you are seeking and how it will be used to grow your company most investors are going to decline to open their wallets. By Paul Jackson, founder of Worthworm.

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Build Entrepreneur Credentials Early and Wisely

Startup Professionals Musings

Too many startups fail simply by missing the practical elements of money management, time management, and setting priorities. Most schools have business plan competitions, and even give out seed money to winners. Many believe that entrepreneurs are born, not made.

Uber Cofounder Garrett Camp Raises $50 Million From Dream Team of Investors

Inc Startups

Expa Capital--what the $50 million was raised for--is Expa''s investment arm, which will initially invest between $500,000 and $1 million in seed capital in each company, focusing on mobile applications, platforms, and marketplaces.

So Just How Do You Start A Startup?

YoungUpstarts

They originally set out to make money selling programming languages. Only Money Can Make It Happen. Every startup needs money. There are a few ways to go about this, you can get loans, raise the money yourself, or get investors.

Is Canva the Company That Will Disrupt the Design World? Not Quite

crowdSPRING Blog

It launched in 2013 with $3 million in seed money from American and Australian investors, and offers a series of templates intended to make good design easier to execute and more accessible. Canva, the graphic design platform promoting itself as tool that empowers the world to design, is not new.

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.

Should Startups Care About Profitability?

Both Sides of the Table

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. If the growth is as spectacular as it is here and if they have access to cheap capital then they’d be crazy not to have raised VC money.

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

Both Sides of the Table

As a startup founder you rarely have much money in your bank accounts. Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Raise money. Need money. More money.

Monaco 155

Busted or Confirmed? 3 Common Myths About Starting A Business

crowdSPRING Blog

Fortunately, many startup myths revolve around three common topics (business plans, money, and unnatural hustle). Myth #2: You need a lot of money to start. Businesses do require some capital, but this doesn’t mean that every startup has to raise millions of dollars in seed money.

Booming Companies That Should Inspire Entrepreneurs

Blogtrepreneur | Entrepreneur Blog

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