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Premature scaling can kill your business.

Berkonomics

Incremental profits from companies that later sell for three to five times their original value at the time of their investment may be considered great successes for founders but relative failures for VCs, who must hit for the fences with every early-stage investment. Why it’s so personal to me…. first appeared on BERKONOMICS.

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7 Investor Term Sheet Demands Startups Need Not Fear

Startup Professionals Musings

Here is a summary of the key terms to expect on the term sheet, or the contract between the founder and investor: Consideration given for the money invested. For later investments, the price is equity, with a percentage of the owner stock to be assigned to the investor. Definition of investment delivery in "tranches."

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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. This means less capability to ensure that invested funds are spent wisely or as planned. Risk is increased.

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Both sides must be fair in a term sheet negotiation.

Berkonomics

Each one of these terms includes aspects of fairness, ethics, law, business, entrepreneurship, psychology and investing. Angel investing today is similar to where venture capital investing was in the mid-1980s. As a result, there is tight agreement today on the form of VC term sheets and definitive investment agreements.

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Local VCs Assess Wall Street, Technology Investment Climate

socalTECH

According to some local Southern California venture investors, it absolutely is affecting how they are thinking about the investment environment. He explains, "Our partnership is spending time evaluating the impacts on our portfolio and our outlook on future investments.".

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7 Considerations In Choosing A Startup Funding Source

Startup Professionals Musings

They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup. Let’s consider some basic definitions. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations.

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5 Priorities Before You Bypass Professional Investors

Startup Professionals Musings

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. Crowdfunding to gauge demand is not recommended, since failed campaigns don’t usually recover later.

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