Gust

MAY 11, 2014

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.

Seed Money 164

Seed Money SBIR Dilution Government 164

Gust

DECEMBER 18, 2013

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. That is a swing of 15x from the investor’s point of view!

Valuation 150

Valuation Founder Seed Money Common Stock 150

Gust

JANUARY 13, 2013

Most schools have business plan competitions, and even give out seed money to winners. Pick an idea, any idea. There is nothing like writing and pitching a business plan that makes you realize what you don’t know. Once you graduate, you can’t take that course you need, and even the advisors are gone. Business networking is key.

Entrepreneur 180

Entrepreneur Seed Money Social Network Business Plan 180

Gust

SEPTEMBER 6, 2012

For instance, if that same big shot investor would have valued your company in the early days at, say $1 million, but is eventually willing to invest in you at a valuation of, say, $5 million, that means you were able to increase the company’s value 500% using my original seed money.

Valuation 117

Valuation Equity Stock Angel Investor 117

Gust

OCTOBER 2, 2014

Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. He shut down his company gracefully and even thought it must have felt like a crap sandwich doing so I’ll bet his reputation is still solid with his backers. Many times it’s less.

Monaco 122

Monaco Cofounder Chicago Mexico 122