article thumbnail

7 Secrets To Bank Equity Funding Without Collateral

Startup Professionals Musings

Many entrepreneurs are convinced that banks are not worth the effort for startups, especially early-stage ones that still don’t have a revenue stream, or collateral to back up their financing needs. Bankers do not contribute equity. The short answer is that some banks will help, if you do your homework. Money from other sources.

Equity 121
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. These groups are now largely run by volunteers at no cost to entrepreneurs. Later funding rounds can’t deal with a thousand shareholders.

Equity 164
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 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a cofounder or two. So, the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity.

Equity 99
article thumbnail

8 Keys To Starting A Venture With Minimal Equity Loss

Startup Professionals Musings

If you really want to start a business your way without a boss or professional investor hovering over you, then just fund it yourself or through friends and family, and grow it organically. Here are the key principles I recommend as an advisor to many entrepreneurs: Start your business in your own home. Marty Zwilling

Equity 139
article thumbnail

Use creative fundraising instead of equity or debt?

Berkonomics

Use creative fundraising instead of equity or debt? Strategic partnerships with suppliers, customers and others sometimes are an attractive way to share the risk and fund an operation. These are just some of the ways to creatively raise funds without offering equity or taking on new debt. By Dave Berkus.

Equity 156
article thumbnail

8 Tactics To Highlight Your Startup For Early Funding

Startup Professionals Musings

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Startup 109
article thumbnail

HBCUvc founder Hadiyah Mujhid on one way investors can advance racial equity

TechCrunch LA

In response to VCs’ sudden rush to invest in more Black founders , Black venture capitalists and entrepreneurs have penned a bunch of advice on the best way to tap into talent. We cannot make significant progress in advancing racial equity without long-term financial commitment,” Mujhid wrote. Among the strategies?

Equity 220