Startup Professionals Musings

Venture Capital Investors Look Beyond Your Startup

Startup Professionals Musings

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. On the other hand, venture capital doesn’t get smoothly spread across the geographic and demographic landscape, and the number of active venture capital firms has dropped sharply.

10 Reasons For Joining The New Startup Wave Now

Startup Professionals Musings

Looking ahead, the National Venture Capital Association (NVCA) predicts that 2015 will bring further good news for entrepreneurs across several fronts, including more investment, greater IPO volume for exits, greater employment opportunities at startups, and even more improvements in the economy.

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Will Your Startup Get Venture Capital or IPO in 2013?

Startup Professionals Musings

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. For the full year 2012, venture-backed initial public offerings raised $21.5

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. To me, this indicates that venture capitalists (VCs) are looking for business, but not from first-time startups. Back to VCs, Silicon Valley venture capital firms are still the most active.

Right Entrepreneurs In The Right Place Get Funded

Startup Professionals Musings

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. On the other hand, venture capital doesn’t get smoothly spread across the geographic and demographic landscape, and the number of active firms has dropped sharply.

Smart Entrepreneurs Build Startups Without Investors

Startup Professionals Musings

The reality is that over 80 percent of new businesses will never attract venture capital or Angel funding, according to experts , and there are many good reasons for skipping that painful and distracting process.

When To Enlist A Board Of Directors Or Advisory Board

Startup Professionals Musings

This Advisory Board is a good test drive for the more formal Board of Directors required later, when going public (IPO) or the entrance of venture capital investors. Many entrepreneurs I know are confused by definition and need for an Advisory Board versus a Board of Directors.

10 Strategies To Cover New Product Development Costs

Startup Professionals Musings

According to my experience and a classic Gompers and Lerner study, the challenge is very real, with a majority of new ventures that don't attract investors failing within the first three years. Joint venture with distributor or beneficiary.

10 Tried-And-True Strategies For Funding New Ventures

Startup Professionals Musings

Solicit venture capital investors. business entrepreneur funding new ventures startupsOne of the most frequent questions I get as a mentor to entrepreneurs is “How do I find the money to start my business?”

Will Crowdfunding Replace Angel And VC Investors?

Startup Professionals Musings

Yet as I mentor entrepreneurs around the country, it still seems to be one of the least understood approaches to startup funding, with more myths than accredited angels and professional venture capital investors combined.

10 Ways For Entrepreneurs To Meet Cash Flow Peaks

Startup Professionals Musings

According to a classic Gompers and Lerner study, the challenge is very real, with a majority of new ventures that don't attract investors failing within the first three years. Joint venture with distributor or beneficiary.

8 Steps In Securing A Bank Loan To Fund Your Startup

Startup Professionals Musings

In all cases, the loan option should be investigated before looking for an Angel investor, since the “cost” of a loan is usually considered less than giving up a large share of your company equity and control to Angel or venture capital investors.

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

Even if you work every day in the world of new-venture funding, as I do, the options are confusing, and their meanings seem to change on a regular basis. A micro venture capital firm. A “genesis” venture capital round.

A Five-Minute Tutorial On How To Value Your Startup

Startup Professionals Musings

According to the Angel Capital Association (ACA) blog, the average startup valuation for new ventures receiving angel investments has been around $2.7 This factor is more relevant to venture capital investors who come in at a later stage and expect more traction to qualify.

The 5 Most Common Frustrations Of An Entrepreneur

Startup Professionals Musings

You never have the time and resources for International expansion, acquisitions, venture capital investors, or going public.

How Entrepreneurs Attract Friends, Family And Fools

Startup Professionals Musings

Image via Flickr by Jupiter Labs Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors.

8 Types of Investors That Entrepreneurs Need to Avoid

Startup Professionals Musings

Investors are human and subject to human tendencies, whether they are your rich uncle, an angel investor with personal funds or a venture capital investor with institutional money. Don’t assume that all investors are the same, just because their money is always the same color.

Super Angels Are A Boon To Startups Needing Funding

Startup Professionals Musings

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over 60 times as many companies, according the Center for Venture Research.

Angel Investors Are Still The Lifeblood Of Startups

Startup Professionals Musings

David is one of the most active angel investors in New York, and also the CEO of Gust , which is an online platform for startup financing used by over 45,000 accredited angel investors, 1000 angel groups and venture capital funds, and 200,000 entrepreneurs.

8 Insights For Startups To Attract Angel Investors

Startup Professionals Musings

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Their realm fits between crowdfunding and venture capital sources.

How To Prepare For The Entrepreneur Life You Want

Startup Professionals Musings

Crowdfunding is just the latest alternative for assistance to entrepreneurs who need help, supplementing the existing alternatives of loans, grants, angel investors, venture capital and many others.

The Top 4 Wrong Reasons to Seek Investors

Startup Professionals Musings

Indeed, there is a time and place in every new venture where even a bootstrapping entrepreneur should consider bringing on investors. If one of the top venture-capital firms invests in your startup, your potential for success will be boosted by the association.

7 Strategies To Reduce The Cost Of Finding Investors

Startup Professionals Musings

As they say, you only get one chance to make a great first impression, so don’t pitch to a key angel group or venture capital team for practice. According to the Angel Capital Association (ACA), only about a third of its member groups charge any fee, and in all cases less than $500.

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These 8 Groups of People Will Never Start a Business

Startup Professionals Musings

People can build great ecommerce sites with free tools, smartphone apps in their spare time and use crowdfunding to bypass the dreaded angel funding and venture capital penalties.

10 Entrepreneur Alternatives To Investor Funding

Startup Professionals Musings

According to a Gompers and Lerner study, the challenge is very real, with a majority of new ventures that don''t attract investors failing within the first three years. Joint venture with distributor or beneficiary.

Be A Winning Entrepreneur In The New Sharing Economy

Startup Professionals Musings

The pervasive ability and need to communicate constantly and globally through the Internet and smartphones is incenting everyone to get more out of their own assets and time, and capitalize on the idle resources of others.

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8 Ways To Get Off The Ground With Angel Investors

Startup Professionals Musings

Angel investors are still the lifeblood of early-stage startups, despite the surge of activity in crowdfunding and an increasing early interest from venture capitalists.

Realistic Strategies For Funding Product Development

Startup Professionals Musings

Angel investors and venture capitalists are looking for startups with real products and a proven business model, ready to scale. Yet I still get too many business plans that clearly are looking for money to do research and development (R&D) on a new and unproven technology.

6 Of The Best Reasons For Declining Investor Funding

Startup Professionals Musings

If the entrepreneur wants total control of their own venture, with no one looking over their shoulder, they should work within the limits of their own resources, a process called bootstrapping.

Let Me Count The Ways Entrepreneurs Fund Startups

Startup Professionals Musings

Solicit venture capital investors. One of the most frequent questions I get as a mentor to entrepreneurs is “How do I find the money to start my business?”

5 Logistical Steps For Startups Seeking Investors

Startup Professionals Musings

But for Angel investors and venture capital investors, just remember that investors are not on your team (yet). angel entrepreneur funding investor startup venture capital Don’t charge the hill until you are “ready.”

Don’t Let Outside Funding Kill Your Startup Passion

Startup Professionals Musings

Maintaining your team’s passion and freedom to focus first on innovating for customers are only a couple of the reasons for thinking hard before you seek money from crowdfunding, angel investors, venture capital organizations, or attempt to qualify for a public stock offering.

7 Entrepreneur Traits That Let You Soar With Angels

Startup Professionals Musings

Finally I realized that Venture Capital and Angel investors are actually humans, despite some views to the contrary. As a startup mentor, I’m always amazed that some entrepreneurs seem to be an immediate hit with investors, while others struggle to get any attention at all.

7 Attributes of An Entrepreneur's Startup Dream Team

Startup Professionals Musings

There is a common belief in the angel and venture capital community that you put your money on the best team, rather than the best idea.

Check Your Entrepreneurial DNA Before You Start Up

Startup Professionals Musings

We all have strengths and special interests, and it always pays to capitalize on these, rather than assume all opportunities are the same. Venture capital investors have the resources to travel to entrepreneurs with high potential.

7 Investor Term Sheet Demands Startups Need Not Fear

Startup Professionals Musings

Venture capital investors normally insist on this option. Most entrepreneurs looking for an investor can tell you how much money they need, but few have given much thought to what they are willing to give up for it.

8 Questions To Help Set Expectations With Investors

Startup Professionals Musings

On the other hand, venture capital organizations typically look for needs that exceed $2 million. One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round.

Entrepreneur Business Forecasts Are Not Black Magic

Startup Professionals Musings

Project your cash burn rate to keep at least 18 months between venture capital or angel investments. When you start a business, as in most other venture, having no plan is a plan to fail.

Lessons From The Military On Winning Funding Battles

Startup Professionals Musings

But for angel investors and venture capital investors, just remember that investors are not on your team (yet). Don’t charge the hill until you are “ready.” This probably seems obvious to military types, but I see entrepreneurs violating this rule all the time.

Angel Investors Skip Startups With No Profit Motive

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in non-profits. Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with Angel investors, or the venture capital process.