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Can you finance your company with grants?

Berkonomics

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
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Seek Support Organizations Based On Startup Stage

Startup Professionals Musings

The challenge is finding and using qualified affordable support organizations for each stage. The first step toward a business with any idea is to write it down, and build a business plan around it. The incubator organization can help you find them, or show you how to apply for a government grant. Early or embryonic stage.

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The Changing Venture Landscape

Both Sides of the Table

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.

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So, what’s the plan?

Berkonomics

As a professional investor in early-stage companies, I have long discounted long, detailed business plans in favor of a concise “executive summary” followed by a believable spreadsheet-based financial forecast projecting three to five years into the future. Write these steps down in any form for now. The post So, what’s the plan?

Summary 156
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Financing with grants, not equity or debt

Berkonomics

I was chairman of a company that, for twelve years never took a dollar of outside investment. The company was funded entirely by grants from the National Institute of Health, amounting to millions of non-dilutive dollars in all. The effort to write a grant request is not trivial. No dilution to shareholders or the founders.

Equity 156
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Why not share your liquidity success with those who got you there?

Berkonomics

So, you are close to selling your company, and counting the profits a bit early. Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. Well, that’s human nature.

Sales 480
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Don’t Underrate The Value Of A Startup Plan Document

Startup Professionals Musings

In fact, the process of organizing and documenting these elements is the best way to make sure you understand the answers yourself. If you don’t have the time to write things down, or your writing skills leave something to be desired, don’t be afraid to get some help.

Startup 102