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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules. In equity crowdfunding, no investor is representing their own interest. This can hurt the company, and jeopardize all investors.

Equity 164
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5 Startup Funding Models That Depend On The Consumer

Startup Professionals Musings

Yet as I mentor entrepreneurs around the country, crowdfunding 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. Startup equity model. In Europe, other investors can buy equity, with platforms such as Seedrs.

Funding 141
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10 Recommendations For Aspiring New Venture Investors

Startup Professionals Musings

First of all, it’s more of an investment in people than in a business, since the startup is usually an idea barely half-baked when they need your money. Today most startup investors still register with the SEC as “ accredited ” investors before they buy any startup equity in the U.S. Participate as a mentor in local startup incubators.

Startup 120
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10 Ways To Get The Capital You Need For Your Startup

Startup Professionals Musings

One of the most frequent questions I get as a mentor to entrepreneurs is “How do I find the money to start my business?” I always answer that there isn’t any magic, and contrary to the popular myth, nobody is waiting in the wings to throw money at you, just because you have a new and exciting business idea.

Startup 106
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5 Venture Periods Call For Unique Funding Strategies

Startup Professionals Musings

On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue). Prior to the growth stage, your company valuation is limited to goodwill based on intellectual property and team experience, since you have no revenue.

Funding 125
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5 Crowdfunding Concerns Worry Professional Investors

Startup Professionals Musings

Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules. In equity crowdfunding, no investor is representing their own interest. This can hurt the company, and jeopardize all investors.

Equity 80
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8 Ways An Incubator Can Accelerate Your New Venture

Startup Professionals Musings

They dream of appearing at the door, with their idea on the back of a napkin, and popping out a few months later with investor money to burn. Y Combinator , led by Paul Graham, claims success with 3000 companies over 15 years, with a combined value of over $300 billion. Expert mentoring and training. Initial funding.

Incubator 146