article thumbnail

5 Startup Funding Models That Depend On The Consumer

Startup Professionals Musings

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors was legalized via the SEC way back in 2016, and its impact is still not fully understood. The crowd gets the satisfaction of helping, with minimal risk, and no expectation of any high return. Startup equity model. Product pre-order model.

Funding 141
article thumbnail

4 Keys To A Successful Integrity Check With Investors

Startup Professionals Musings

If there are conflicts within the team, or differing views of the strategy, or evidence of missing processes and tools, the investment process will likely be terminated. Make yourself available to answer any questions, show your enthusiasm, and explain both the positives and negatives of the external investment process.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Crowdfunding Approaches To Tempt Every Entrepreneur

Startup Professionals Musings

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors was only legalized via the SEC in 2016, so its impact is still in the early stages. The crowd gets the satisfaction of helping, with minimal risk, and no expectation of any high return. Startup equity model. Product pre-order model.

article thumbnail

How To Prepare Your New Venture For Investor Scrutiny

Startup Professionals Musings

If there are conflicts within the team, or differing views of the strategy, or evidence of missing processes and tools, the investment process will likely be terminated. Make yourself available to answer any questions, show your enthusiasm, and explain both the positives and negatives of the external investment process.

article thumbnail

7 Startup Costs That You Assume With Outside Funding

Startup Professionals Musings

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. Many times friends and family have been broken by failed investments. Very few entrepreneurs I know have the patience and time to communicate to the satisfaction of all investors.

Funding 107
article thumbnail

6 New Venture Challenges Make It An Endurance Sport

Startup Professionals Musings

McGinnis, a well-known venture capitalist and private equity investor. I see no reason not to balance these frustrations with the satisfaction of more conventional work accomplishments and the people relationships we all need to thrive. Startups cost money but don’t pay a salary before revenue.

Startup 102
article thumbnail

5 Steps To Reduce Due Diligence Investment Failures

Startup Professionals Musings

In my activities as an angel investor, and my work with new ventures seeking investment, I find the “due diligence” stage to be fraught with the most risk. Usually this stage only really starts after an investor has expressed serious interest, or already informally agreed to invest. Update reference customers, partners, and vendors.

Invest 59