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An economics lesson for growing companies

Berkonomics

It may not be equity. Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise. How about asset-based lenders?

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Need money? Read this!

Berkonomics

There is a lot to say about retaining control. Friends, family and fools: [Email readers, continue here…] This term, although pejorative, describes the typical mix of early investors in a small, young growing business. Venture, private equity and more: Here we lump a large number of investor classes into one.

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What is the real goal for our management and company?

Berkonomics

But that is a number in a vacuum without at least two other measures: return on investment (ROI) and percentage of net profit to revenue. Microsoft, Google, Amazon and other great firms generate billions of revenues and profits and even have a high ROI and high net profit percentage. Comparing ourselves to the giants.

Company 156
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8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Take little to no net profit. All you need is a blog, Twitter, email, some business card stock, and a little creativity. Don’t think about the exit.

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Does your business need money? Read this!

Berkonomics

Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. There is a lot to say about retaining control. Venture, private equity and more: Here we lump a large number investor classes into one.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

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. Why you should never have a data room?—?the If you stick through to the end I’m guessing I can persuade most of you. How should I best prepare for that?”

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When should you go for equity financing?

Berkonomics

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. The post When should you go for equity financing? Friends and family investors. Venture farms.

Equity 156