Startup Professionals Musings

JUNE 12, 2015

Every investor in your startup, even friends and family, normally expects a share of your company (equity), which means your return for all your effort goes down quickly. Of course, nothing is really free in the business world. Grants should never be seen as the only alternative to equity investors, or vice versa.

Pricing 100

Pricing Equity Technical Review Research 100

Startup Professionals Musings

JANUARY 20, 2020

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. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge. Startup equity model. Product pre-order model.

Entrepreneur 129

Entrepreneur Outsource Development Satisfaction Equity 129

Startup Professionals Musings

MAY 30, 2022

Of course, not every entrepreneur wants to tackle this challenge. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Of course, that means a new level of risk, giving up some control, and a new business plan. There is no free lunch. Install a real board of directors.

Sales 147

Sales Metrics Guide Startup 147

Startup Professionals Musings

APRIL 4, 2022

The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Tips 104

Tips Startup Technical Review Equity 104

Both Sides of the Table

SEPTEMBER 29, 2013

AngelList 101 : As you know, AngelList is a platform where angels can invest in semi-screened tech deals. As an angel you can look for the social proof in deals “Dave Morin is investing …” to make your decision. AngelList Syndicate leads don’t take any fees on the investment, which should help with returns.

Venture Capital 356

Venture Capital Invest Course Technical Review 356

Startup Professionals Musings

DECEMBER 6, 2019

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Startup 128

Startup Technical Review Equity Incubator 128

Both Sides of the Table

JUNE 5, 2015

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. Pre-money ($8m) + investment ($2m) = Post-money ($10m) and the investors now own 20% of your company $2m / $10m. How much am I willing to invest in your company?

Venture Capital 150

Venture Capital Pricing Startup Invest 150

Both Sides of the Table

JANUARY 4, 2014

Of course it makes no sense to have great people management and a crappy product. ” Of course we all go into businesses expecting to be aligned with our co-founders but over time life changes. Equity for the future? Of course I’m sure they both look at the past and wish they would have made different choices.

Startup 340

Startup Technical Review Course Press 340

Both Sides of the Table

MARCH 31, 2012

Many MBA programs still cater too much to the needs of large, corporate management jobs or prepare students to enter big consulting companies or investments banks. Here is a sample of the reading list for the course that gives you a flavor for just how modern and practical this course is.

Startup 319

Startup Sales Course Competition 319

Startup Professionals Musings

AUGUST 17, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions.

Equity 99

Equity Venture Capital Invest Pricing 99

Both Sides of the Table

JULY 16, 2010

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. So the people who invest in VC funds have two problems.

Venture Capital 311

Venture Capital Startup Seed Funding Rustic Canyon 311

Startup Professionals Musings

FEBRUARY 21, 2015

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors, is still not legal in the U.S., With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge. Startup equity model. In Europe, other investors can buy equity, with platforms such as Seedrs.

Venture Capital 108

Venture Capital Angel Satisfaction Equity 108

Startup Professionals Musings

JULY 27, 2018

This implies high odds of a scalable business, simply needing an investment to lead to success. Of course, you wouldn’t include this data in your customer product pitch. Business model showing costs, pricing, and margins. Specific investment size request, and equity offered.

Product 58

Product Slides Entrepreneur Invest 58

InfoChachkie

FEBRUARY 25, 2013

Despite the proliferation of entrepreneurial courses within Business Administration programs, business schools are essentially vocational training grounds for consultants and investment bankers. If you haven't already subscribed yet, subscribe now for free weekly Infochachkie articles! Startups Need Execution, Not Administration.

Entrepreneur 279

Entrepreneur Technical Review Case Study Class 279

Startup Professionals Musings

JUNE 30, 2019

The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Startup 87

Startup Technical Review Equity Incubator 87

Both Sides of the Table

MAY 13, 2018

If you truly believe that you, your company and your products are exceptional and your company will be valuable then you’re actually doing them a FAVOR by helping them invest in your startup. If you don’t believe in your bones that you’re amazing then it’s no wonder you don’t want to sell them on making the investment.”

Venture Capital 332

Venture Capital Funding Startup Sales 332

Startup Professionals Musings

SEPTEMBER 7, 2015

You shouldn’t invest in an undefined business. Five-year revenues, based on your volumes and prices, should penetrate at least 10 percent of the target market segment. Think about the valuation implications and equity you are willing to give up for each investment amount. Neither extreme is good.

Startup 107

Startup Equity Invest Acquisition 107

Startup Professionals Musings

MAY 28, 2013

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions.

Startup 97

Startup Equity Entrepreneur Venture Capital 97

Startup Professionals Musings

JULY 14, 2014

The problem is that professional investors (Angels and Venture Capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Entrepreneur 113

Entrepreneur Funding Startup Technical Review 113

Startup Professionals Musings

SEPTEMBER 1, 2019

Of course, not every entrepreneur wants to tackle this challenge. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Of course, that means a new level of risk, giving up some control, and a new business plan. There is no free lunch. Install a real board of directors.

Startup 97

Startup Sales Metrics Guide 97

Both Sides of the Table

APRIL 14, 2012

“it’s smart to use an impending investment valuation to drive a higher acquisition valuation” I would like to amend her statement slightly to read, “it’s smart to use an impending investment valuation to drive an higher acquisition.” You are either bought for stock or for equity.

Venture Capital 316

Venture Capital Pricing Social Network Acquisition 316

Startup Professionals Musings

NOVEMBER 21, 2016

At any rate, here is my own list of red flags, from my years of experience advising and investing in aspiring entrepreneurs, which cause me to lose interest and start looking for a way out the door: Omit the facts on key management team experience and skills. Of course, customers love free, but investors hate it.

Funding 98

Funding Startup Innocal Entrepreneur 98

Startup Professionals Musings

JULY 8, 2015

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Entrepreneur 105

Entrepreneur Startup Technical Review Equity 105

Startup Professionals Musings

JULY 1, 2017

The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Develop 70

Develop Development Product Startup 70

Startup Professionals Musings

AUGUST 7, 2015

Of course, these should never be in a customer pitch, but investors expect an overall strategy with specific budgets, milestones and metrics. Partnerships, distribution channels and pricing models should be included. “If Immediate investment requirements and use of funds. Specific elements of your marketing and sales plans.

Product 103

Product Slides Customer Custom 103

Startup Professionals Musings

FEBRUARY 19, 2013

The problem is that professional investors (Angels and Venture Capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Startup 123

Startup Technical Review Equity Incubator 123

Startup Professionals Musings

JANUARY 12, 2018

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. Of course, we all realize that this approach will take longer, and could jeopardize both roles if not managed effectively.

Startup 53

Startup Technical Review Equity Incubator 53

Both Sides of the Table

SEPTEMBER 28, 2014

otherwise I prefer to invest less and risk less). Your goal is to invest in engineering (to maintain your product lead), new offices / locations (to capture markets before others), marketing (to capture consumer attention before others do) … all of these activities consume cash often in advance of the revenue they generate.

Startup 383

Startup Company Companies .Net 383

Startup Professionals Musings

MAY 30, 2012

Look how the Japanese entered the auto industry, or how McDonalds imitated White Castle, or how Wal-Mart “perfected” the low-price high-volume approach. Of course, the first one gets the patent. Even banks, as well as equity investors, look more favorably on a proven business model than a new and unproven one.

Patents 84

Patents Startup Statistics Course 84

Startup Professionals Musings

FEBRUARY 4, 2015

Of course, not every entrepreneur wants to tackle this challenge. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Of course, that means a new level of risk, giving up some control, and a new business plan. There is no free lunch. Install a real board of directors.

Startup 108

Startup Sales Metrics Entrepreneur 108

Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Expensive new IT systems, consultants, and investment bankers are usually required. Increasing government regulations.

Startup 89

Startup Entrepreneur Report Summary 89

Startup Professionals Musings

FEBRUARY 26, 2011

Look how the Japanese entered the auto industry, or how McDonalds imitated White Castle, or how Wal-Mart “perfected” the low-price high-volume approach. Of course, the first one gets the patent. Even banks, as well as equity investors, look more favorably on a proven business model than a new and unproven one.

Startup 91

Startup Patents Statistics Course 91

Startup Professionals Musings

SEPTEMBER 30, 2012

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. Expensive new IT systems, consultants, and investment bankers are usually required. Increasing government regulations.

Entrepreneur 95

Entrepreneur Startup Report Summary 95

Startup Professionals Musings

SEPTEMBER 13, 2017

Of course, not every entrepreneur wants to tackle this challenge. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Of course, that means a new level of risk, giving up some control, and a new business plan. There is no free lunch. Install a real board of directors.

Startup 56

Startup Sales Metrics Guide 56

Both Sides of the Table

MARCH 2, 2011

I was thinking back to a few previous “insider baseball&# blog debates that raged for several weeks: AngelGate (aka Bin38 secret cabal), convertible debt vs. equity, bubble vs. not, and now the AngelList discussion. Should entrepreneurs have convertible debt or priced equity? Of course not. Same thing.

Email 287

Email Blogging Venture Capital Writing 287

Both Sides of the Table

JANUARY 1, 2016

But of course all of these things are intertwined. We want to invest in early-stage technology enabled startup businesses – upfront in the funding cycle. In fact, 90% of our investments are either Seed or A-round investments (10% are B-round). We chose the word “upfront” to represent our culture.

Startup 150

Startup Coach Course Invest 150

Startup Professionals Musings

NOVEMBER 3, 2013

Of course, not every entrepreneur wants to tackle this challenge. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Of course, that means a new level of risk, giving up some control, and a new business plan. There is no free lunch. Install a real board of directors.

Sales 96

Sales Metrics Startup Entrepreneur 96