SoCal CTO

NOVEMBER 1, 2010

I had a recent email dialog with the founder of a company looking for a CTO for their startup. Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. Was it a Startup Founder Developer Gap

CTO Hire 241

CTO Hire CTO Coach Equity Develop 241

Berkonomics

MAY 8, 2014

I am chairman of a company that, as I write this, is twelve years old and has not yet taken a dollar of outside investment. The company has been funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all. Grant writing takes skill and immense amounts of time.

Company 166

Company Companies Writing Education 166

Both Sides of the Table

DECEMBER 11, 2022

I started my first company in 1999 and was admittedly swept up in all of this: Magazine covers, fancy conferences, artificial valuations and easy money. Between 2006–2008 I sold both companies that I had started and became a VC. Starting in 2009 I began writing checks consistently, year-in and year-out.

Venture Capital 466

Venture Capital Startup Marketing Pricing 466

Startup Professionals Musings

MARCH 22, 2020

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). That means writing down and signing the terms of the agreement, after making sure everyone understands them. Loans are a safer option than equity. Be professional about it.

Funding 123

Funding Startup Equity Venture Capital 123

Both Sides of the Table

SEPTEMBER 10, 2021

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. I often answer the same way … * “First, yes, nearly every corner of our market is over-valued. By definition?—?I’m dot-com bonanza.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

Berkonomics

APRIL 3, 2014

We’ve spoken of financing a young company through friends and family, known as “inside angels.” There are three classes of equity investors for early stage businesses that we have not yet considered. Being located in a distant city greatly reduces the chance of funding success.

Equity 232

Equity Startup Organization Invest 232

Both Sides of the Table

MAY 19, 2018

the most counter-intuitive fund-raising advice you’ll ever get I’m about to offer you some fund-raising advice that flies directly in the face of what most conventional wisdom will tell you. Let me start out with my premise: “Data rooms are where fund-raising processes go to die.” against a broad range of similar companies.

Funding 336

Funding Venture Capital Startup Email 336

Both Sides of the Table

SEPTEMBER 28, 2014

But what IS the right amount of burn for a company? Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. Gross Burn vs. Net Burn.

Startup 383

Startup Company Companies .Net 383

Startup Professionals Musings

JUNE 23, 2023

A common question I get is “How do I get a bank loan to fund my startup?” That’s why angel and equity investors are so sought after by entrepreneurs. Here are some tips and rules of thumb to improve your odds and help you understand when a bank loan or line of credit is possible, and how to get it: Write a good business plan first.

Startup 117

Startup Equity Sites Funding 117

Both Sides of the Table

MAY 13, 2018

The most important advice I could give you before you set out in fund raising mode is to understand that fund-raising a sales & marketing process and needs to be managed. an investment in your company. Somehow many first-time founders equate “sales” with something that is beneath them. This is where most founders err.

Venture Capital 332

Venture Capital Funding Startup Sales 332

Startup Professionals Musings

DECEMBER 28, 2018

It’s helpful to think of startups as proceeding through several stages, which I have defined some time ago from a funding perspective. The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services.

Funding 94

Funding Startup Organization Incubator 94

Both Sides of the Table

MAY 23, 2010

This happens when the company has been making steady progress but hasn’t built enough “ proof &# to raise its next round of financing from external investors. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Funding Venture Capital Pricing 290

TechCrunch LA

FEBRUARY 6, 2022

The Facebook parent-company saw its stock price get bludgeoned after a bad earnings report showcased that Apple’s ad-blocking changes are shaving billions off its books and the company’s crown jewel — the Facebook platform — has stopped growing and actually shrank this quarter.

Marketing 246

Marketing Newsletter Technical Review News 246

Startup Professionals Musings

DECEMBER 1, 2018

A common question I get is “How do I get a bank loan to fund my startup?” That’s why angel and equity investors are so sought after by entrepreneurs. Here are some tips and rules of thumb to improve your odds and help you understand when a bank loan or line of credit is possible, and how to get it: Write a good business plan first.

Funding 84

Funding Startup Equity Sites 84

Both Sides of the Table

FEBRUARY 14, 2016

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization.

Startup 150

Startup Company Companies Venture Capital 150

Berkonomics

MAY 22, 2014

Bill Payne has been actively involved in angel investing since 1980, funding over 50 companies and mentoring over 100 more. The sale of equity in private companies is regulated by the Securities Act of 1933, which requires that the company either register with the SEC or meet one of several exemptions (Regulation D).

Writing 199

Writing Invest Entrepreneur Equity 199

Startup Professionals Musings

SEPTEMBER 27, 2020

A common question I get is “How do I get a bank loan to fund my startup?” That’s why angel and equity investors are so sought after by entrepreneurs. Here are some tips and rules of thumb to improve your odds and help you understand when a bank loan or line of credit is possible, and how to get it: Write a good business plan first.

Startup 172

Startup Equity Sites Tips 172

Startup Professionals Musings

OCTOBER 10, 2014

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). That means writing down and signing the terms of the agreement, after making sure everyone understands them. Loans are a safer option than equity. Be professional about it.

Funding 101

Funding Startup Equity Entrepreneur 101

Startup Professionals Musings

OCTOBER 12, 2020

It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective. The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services.

Resource 171

Resource Startup Organization Incubator 171

Both Sides of the Table

AUGUST 14, 2017

And of course we help with business development introductions and with fund raising events. Board work does involve a lot of conflict at moments throughout the company. Sometimes it comes because investors believe the company needs more experienced leadership to run the company or more often to help run the company.

Startup 217

Startup Technical Review Equity Report 217

socalTECH

MAY 25, 2016

Santa Monica-based March Capital Partners (www.marchcp.com) has just announced a brand new, $240M venture investment fund, led by longtime venture investing veterans Jim Armstrong, Sumant Mandal, Gregory Milken and Jamie Montgomery. What is the investment focus for this fund?

Southern California 113

Southern California Capital Funding Invest 113

Startup Professionals Musings

NOVEMBER 8, 2010

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). Startup decisions only get harder later, never easier.

Equity 91

Equity Startup CTO Hire CTO Coach 91

Both Sides of the Table

OCTOBER 17, 2019

The first check I wrote was just over 10 years ago into a company called Invoca who just announced a new $56 million in funding led by Scott Hilleboe at HIG Growth Partners. We not only have our Series A funds that can write $500k?—?$15 15 million first checks but we also have three growth funds. $15

Venture Capital 223

Venture Capital IP Startup Google 223

Startup Professionals Musings

MARCH 9, 2018

The only way an entrepreneur can really dodge this issue is to totally fund the startup with personal funds (bootstrapping). That means writing down and signing the terms of the agreement, after making sure everyone understands them. Loans are a safer option than equity. Be professional about it.

Funding 59

Funding Startup Equity Entrepreneur 59

TechCrunch LA

NOVEMBER 4, 2019

million in funding from Rebecca Minkoff and other unnamed investors. A company like Moe will help legitimize the industry,” Bernstein tells TechCrunch. The company was co-founded by Eric Wei, a former product manager at Instagram who focused on the creator and influencer side of the business.

Platform 170

Platform Marketing Tool Venture Capital 170

Both Sides of the Table

FEBRUARY 24, 2019

As a starting point there comes a time where investors have piled millions of dollars into a company and while they don’t want to control it, they also want a degree of independence in decision-making that comes when you have somebody who wasn’t a founder that is on the board of directors. you can build that with your personal peer network.

Startup 187

Startup Writing Venture Capital Oracle 187

Startup Professionals Musings

SEPTEMBER 30, 2013

Every investor expects to see some business traction, both before and after a funding event. If you have neither, and choose to approach an investor, you will get no attention, and probably never again get a shot at funding with that investor. Now investors will pay attention, since scale-up funding is less risky and has a time frame.

Funding 112

Funding Entrepreneur Startup CTO Hire 112

Startup Professionals Musings

OCTOBER 31, 2016

A common question I get is “How do I get a bank loan to fund my startup?” Here are some tips and rules of thumb to improve your odds and help you understand when a bank loan or line of credit is possible, and how to get it: Write a good business plan first. Bankers, like investors, fund people rather than ideas.

Startup 92

Startup Funding Sites Tips 92

Startup Professionals Musings

JUNE 15, 2013

It’s helpful to think of startups as proceeding through several stages, which I have defined before from a funding perspective. The first step toward a business with any idea is to write it down, and build a business plan around it. Sometimes these will ask for 5%-15% of your equity for their support services. Marty Zwilling.

Entrepreneur 102

Entrepreneur Funding Incubator Startup 102

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Startup 354

Startup Pricing Equity Venture Capital 354

Startup Professionals Musings

MAY 11, 2013

A common question I get is “How do I get a bank loan to fund my startup?” Here are some tips and rules of thumb to improve your odds and help you understand when a bank loan or line of credit is possible, and how to get it: Write a good business plan first. Bankers, like investors, fund people rather than ideas. Marty Zwilling.

Entrepreneur 100

Entrepreneur Funding Startup Sites 100

Startup Professionals Musings

DECEMBER 30, 2013

I suggest that there are several important questions before assuming that funding is the gate to your success. Here are some key questions to ask yourself, before asking others for money: Do you really need investor funding to make this work? business entrepreneur focus funding startup' Do you have a viable plan? Ask around.

Entrepreneur 101

Entrepreneur Funding Training Startup 101

Startup Professionals Musings

JUNE 12, 2015

Every investor in your startup, even friends and family, normally expects a share of your company (equity), which means your return for all your effort goes down quickly. After months of preparation, you should expect another six to nine months for reviews and funding cycles. Otherwise find an inexpensive class on grant writing.

Pricing 100

Pricing Equity Technical Review Research 100

Startup Professionals Musings

JANUARY 14, 2022

Most entrepreneurs who start a company alone soon come to the conclusion that two heads are better than one – someone to share the workload, the hard decisions, costs, and tasks you don’t like. I’ll put in the money, if you put in the sweat equity.” This would be a mistake, and could easily cost you your startup. Marty Zwilling.

Startup 140

Startup Satisfaction Writing Entrepreneur 140

SoCal CTO

MARCH 3, 2011

Many of the founders of these companies are surprised to learn that I'm willing to review what they are doing (maybe an hour) and get on the phone for an hour with them and provide free advice. What are related products/companies? Or how are you funding the next few milestones? Do I have to write up the overview?

CTO Hire 264

CTO Hire Startup Technical Review Development Team Review 264

TechCrunch LA

MARCH 8, 2019

Responding to Elizabeth Warren’s call to regulate and break up some of the nation’s largest technology companies, the venture capitalists that invest in technology companies are advising the presidential hopeful to move slowly and not break anything. As a whole, venture capitalists viewing the policy were underwhelmed.

Technical Review 144

Technical Review Startup Chief Technology Officer Social Media 144

Both Sides of the Table

JUNE 29, 2011

Amazon in turn led to the formation of an earlier stage of venture capital now led by what I call “micro VCs&# who typically invest $250-500k in companies rather than the $5-7 million that VCs used to invest. And of course hedge funds and growth-equity funds can’t resist trying to get earlier-stage exposure again.

Venture Capital 296

Venture Capital Capital Software Startup 296