Startup Professionals Musings

DECEMBER 26, 2020

As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. Thus crowdfunding is clearly not the panacea for funding and success that many entrepreneurs envision.

Startup 151

Startup Equity Funding Demand 151

Both Sides of the Table

SEPTEMBER 23, 2010

I thought I’d try to look at it from a different lens, that of the entrepreneur. As an entrepreneur you should assume that. Have you reference them? Have you looked at competition? How well financed is the competition? Convertible or equity? So what is an entrepreneur to do? At what valuation?

Pricing 292

Pricing Entrepreneur Technical Review Venture Capital 292

Startup Professionals Musings

MAY 11, 2020

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. It’s no fun for either side.

Technical Review 124

Technical Review Funding Innocal Offshore 124

Startup Professionals Musings

APRIL 25, 2012

As the business economy rebounds, many entrepreneurs are thinking that life will soon get easier, and their opportunity can only grow. Porter proposed his Five Forces framework for analyzing the competitive environment which I think makes even more sense today. These elements are referred to as “barriers to exit.”

Competition 94

Competition Startup Pricing Framework 94

Berkonomics

DECEMBER 7, 2017

Entrepreneurs will have a relative willing to devote time, a school friend with business experience, professionals who charge for the service, investors with a reason to promote your success and more. Business coaches come in all sizes and shapes. Photo courtesy IBM Business Coaching. Original 1994 book.

Coach 243

Coach Organization Resource IBM 243

Startup Professionals Musings

FEBRUARY 8, 2013

Most entrepreneurs work long hours and weekends to get the job done. The passion has to be in the business context – meaning results oriented, customer oriented, and sensitive to competition. Thus you should do the same or more due diligence on educational background, previous work, and references. Compatible work styles.

Software Review 103

Software Review Equity CTO Hire Outsource Development 103

Startup Professionals Musings

JANUARY 17, 2015

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Make sure everyone accurately posts their role with your startup on social media profiles, resumes, and references.

Technical Review 108

Technical Review Startup Satisfaction Entrepreneur 108

Both Sides of the Table

MARCH 3, 2013

Back to Mr. Christensen, “We subsidize their education in fields for which there are no jobs” he said in referring to the fact that many courses at universities are still taught with skills that aren’t relevant to the 21st century needs of the US workforce. He spoke about ROCE (return on capital employed). Freemium.

Venture Capital 403

Venture Capital Education Offshore Outsource Development 403

Startup Professionals Musings

SEPTEMBER 10, 2014

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. It’s no fun for either side.

Technical Review 103

Technical Review Innocal Offshore Entrepreneur 103

Startup Professionals Musings

MAY 24, 2013

As the business economy rebounds, many entrepreneurs are thinking that life will soon get easier, and their opportunity can only grow. Porter proposed his Five Forces framework for analyzing the competitive environment which I think makes even more sense today. These elements are referred to as “barriers to exit.”

Startup 80

Startup Framework Competition Pricing 80

Startup Professionals Musings

MARCH 16, 2016

Whether you are talking to peers, competitors or investors, you as an active entrepreneur will be judged on your familiarity with today’s startup and funding jargon. In that context, I offer you my latest collection of popular investor-to-entrepreneur terms and concepts. Frothy is good for entrepreneurs. Sweat equity.

Startup 57

Startup Software Review Equity Invest 57

Startup Professionals Musings

SEPTEMBER 5, 2011

These are investor slang terms referring to how fast money is being spent, with an implicit question of how long the startup can survive before breakeven or another cash infusion is required. Provisional patents, or lawsuits pending, don’t add up to a strong sustainable competitive advantage. How much “skin” is already in the game?

Entrepreneur 95

Entrepreneur Startup Invest Patents 95

Startup Professionals Musings

MARCH 27, 2016

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. It’s no fun for either side.

Technical Review 63

Technical Review Innocal Offshore Entrepreneur 63

socalTECH

JUNE 20, 2012

We caught up with Sam Teller , who is directing efforts at the accelerator, to help fill entrepreneurs in on where the program fits in the world of technology and startup acceleration. It was really just something built for the community to help support entrepreneurs. For readers, LaunchpadLA is all about?

Class 261

Class Mentor Startup Santa Monica 261

Both Sides of the Table

JULY 11, 2010

[if you're not old enough to get the reference between this image and the title you can click on the image for a prompter]. This past December I spent a week in Boston to try to get to know some of the local VC’s and entrepreneurs a bit better. Entrepreneurs need to share more information with each other.

Startup 285

Startup Venture Capital Incubator Entrepreneur 285

Startup Professionals Musings

SEPTEMBER 8, 2010

One of the key sections of any business plan is the analysis of the competition. Investors take that to mean either 1) there is no market for your product, or 2) you don’t understand the concept of business and competition. It will certainly also decrease profitability over time, as well as test your sustainable competitive advantage.

Startup 86

Startup Competition Pricing Framework 86

Both Sides of the Table

MAY 23, 2010

a loan) that is later converted to equity at the time of the next financing. If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. But I used to jokingly refer to bridge loans as “pier&# loans. And it adds up.

Startup 290

Startup Funding Venture Capital Pricing 290

Both Sides of the Table

JANUARY 21, 2010

I recently read a post over on VentureHacks titled, “ Top Ten Reasons Entrepreneurs Hate Lawyers &# written by Scott Walker (who blogs on legal issues for entrepreneurs ). You never got around to agreeing exact equity splits but you had many conversations about it. Much of this is unfounded – some is not.

Startup 318

Startup IP Southern California Entrepreneur 318

Tech Zulu Event

MARCH 16, 2015

There’s plenty of capital out there, but there’s also a lot of competition for startup funding. These are usually the first sources entrepreneurs tap. Expect to be diluted by 20-25% with each equity round. They’re typically issued at a 10-20% discount to equity depending on the timeframe; higher range is for longer timeframes.

Startup 40

Startup Venture Capital Equity Funding 40

InfoChachkie

MAY 16, 2011

As an entrepreneur and startup investor, I have helped create companies which achieved two IPOs which collectively raised over $100 million, as well as two acquisitions which totaled $385 million. Ask them to accept equity in exchange for all or a portion of their overall compensation. “Learn from the mistakes of others.

Startup 242

Startup Outsource Development Outsource Sales 242

InfoChachkie

APRIL 3, 2012

They profess to be entrepreneurs, but are they actually Wantrepreneurs? A Wantrepreneur is a well-intentioned person who wants to be an entrepreneur, but does not have the skills, personality and or risk profile to be successful. Did you play any team or individual sports competitively? free weekly Infochachkie articles!

Entrepreneur 219

Entrepreneur Startup Equity Journal 219

Startup Professionals Musings

FEBRUARY 4, 2012

All private equity groups go about due diligence in their own way, but there are a few key areas of focus that entrepreneurs should always expect: Team strength and health. Investors will likely talk to dozens of potential customers, starting with your reference list (undoubtedly well prepped). Sustainable competitive advantage.

Technical Review 94

Technical Review Startup Writing Competition 94

Startup Professionals Musings

DECEMBER 16, 2013

These are investor slang terms referring to how fast money is being spent, with an implicit question of how long the startup can survive before breakeven or another cash infusion is required. Provisional patents, or lawsuits pending, don’t add up to a strong sustainable competitive advantage. How much “skin” is already in the game?

Startup 101

Startup Invest Patents Entrepreneur 101

Startup Professionals Musings

OCTOBER 22, 2010

All private equity groups go about due diligence in their own way, but there are a few key areas of focus that entrepreneurs should always expect: Team strength and health. Investors will likely talk to dozens of potential customers, starting with your reference list (undoubtedly well prepped). Sustainable competitive advantage.

Technical Review 90

Technical Review Writing Competition Tips 90

Startup Professionals Musings

NOVEMBER 2, 2012

These are investor slang terms referring to how fast money is being spent, with an implicit question of how long the startup can survive before breakeven or another cash infusion is required. Provisional patents, or lawsuits pending, don’t add up to a strong sustainable competitive advantage. How much “skin” is already in the game?

Startup 97

Startup Invest Patents Customer 97

Startup Professionals Musings

AUGUST 20, 2010

These are investor slang terms referring to how fast money is being spent, with an implicit question of how long the startup can survive before breakeven or another cash infusion is required. Provisional patents, or lawsuits pending, don't add up to a strong sustainable competitive advantage. How much "skin” is already in the game?

Startup 91

Startup Invest Patents Entrepreneur 91

InfoChachkie

JUNE 25, 2009

Some startup attorneys will accept a portion of their initial fees in the form of equity. When you hit the inevitable bumps in the road, a lawyer who has an equity stake in your business is more likely to be flexible with respect to payment terms and more willing to give you quick, off-the-clock feedback and guidance.

Technical Advisors 124

Technical Advisors Technical Review IP Patents 124