article thumbnail

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. In equity crowdfunding, no investor is representing their own interest. But don’t be misled – these are just the cream of the crop.

Equity 164
article thumbnail

With an ARR topping $250 million, LA’s vertical SAAS superstar ServiceTitan is now worth $8.3 billion

TechCrunch LA

The company’s massive mint comes thanks to a new $500 million financing round led by Sequoia’s Global Equities fund and Tiger Global Management. Indeed these trends were already apparent in the statistic that home improvement spending was up 3 percent in 2020 even though the broader economy shrank by 3.5

SaaS 292
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Crowdfunding Concerns Worry Professional Investors

Startup Professionals Musings

According to more recent statistics , fewer than a third of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. I’ve also perused much of the published material on equity crowdfunding, including a detailed book, “ The Crowdfunding Handbook ,” by former Wall Street lawyer, Cliff Ennico.

Equity 80
article thumbnail

7 Advantages That Local Small Business Owners Enjoy

Startup Professionals Musings

It seems that most of you entrepreneurs I meet in my role as business advisor are convinced that starting a new business requires equity investors, exponential growth, and a plan to go public via IPO. Personal income is related to operations versus equity. With major investors, your equity and return is diluted and delayed.

article thumbnail

4 Key Components Of Every New Business Financial Plan

Startup Professionals Musings

External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Check competitor numbers and industry average statistics to get you in the right range. Be willing to give up 20 to 33 percent of your equity to support this. Calculate investment amounts and timing.

Startup 116
article thumbnail

10 Startup Founder Decisions That Have No Good Answer

Startup Professionals Musings

That’s not an attractive statistic if you crave control and power. Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs. You have very little money, and you don’t want to give away your equity. Every founding member wants to be compensated richly for the risk and the unknown.

Startup 130
article thumbnail

4 Simple Steps Will Get Startup Financial Projections

Startup Professionals Musings

External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Check competitor numbers and industry average statistics to get you in the right range. Be willing to give up 20 to 33 percent of your equity to support this. Calculate investment amounts and timing.

Startup 147