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Be careful about equity and options!

Berkonomics

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Equity is divided between the founders and the business begun.

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How To Find Support Resources For Your Startup Stage

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Don’t waste your resources on the wrong ones. Sometimes these will ask for 5%-15% of your equity for their support services.

Resource 171
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Consider all resources before seeking investment.

Berkonomics

Professional investors love to see companies where the first round of financing came from the entrepreneur, showing “skin in the game” and more motivation to succeed because of money invested as well as time and creativity.

Resource 180
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Need money? Read this!

Berkonomics

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds. How important is this issue for your business?

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6 Funding Resources For Ideas Needing More Validation

Startup Professionals Musings

Funding for commercial product prototypes is still R&D in the eyes of venture capital investors, but in business areas with large opportunities, this activity will catch the eyes of specialized angel investors. It’s still considered high risk for investment, since manufacturing and quality issues are likely.

Resource 102
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Craton Equity Partners Acquired By TCW Group

socalTECH

Los Angeles-based socially responsible investment company Craton Equity Partners has been acquired by another, Los Angeles investment company, The TCW Group , TCW announced today. Craton Equity Partners had $241.5M Craton Equity Partners had $241.5M Financial details of the deal were not disclosed. READ MORE>>.

Equity 147
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10 Ways To Get The Capital You Need For Your Startup

Startup Professionals Musings

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Trade equity or services for startup help. Another common example is exchanging equity for legal and accounting support.

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