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8 Parameters To Bracket New Venture Funding Requests

Startup Professionals Musings

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer? How much do you really need for the next 12 to 18 months?

Funding 121
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8 Key Business Elements Set Startup Investor Interest

Startup Professionals Musings

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer? How much do you really need for the next 12 to 18 months?

Startup 135
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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

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. Maybe the market views this as not worth the price you paid?

Startup 290
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

This was an audience of mostly first-time entrepreneurs. I spoke about how Amazon Web Services deserves far more credit for the last 5 years of innovation than it gets credit for and how I believe they spawned the micro-VC category. It is great for entrepreneurs and great for VCs. I believe that. Fair enough. That’s fine.

Pricing 309
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8 Questions To Help Set Expectations With Investors

Startup Professionals Musings

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer? entrepreneur funding request investors startup stage'

Help 104
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7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Most investors won’t touch a first-time entrepreneur at this stage. Ron Conway , of SV Angels, and Reid Hoffman , LinkedIn's founder, are names often mentioned in this category.

Funding 104
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13 Red Flags To Avoid In Your Investor Funding Pitch

Startup Professionals Musings

Others, like Guy Kawasaki , have irreverently called some of these “entrepreneur lies,” but I prefer to think of them as innocent enhancements or omissions that can kill your deal. Even non-profits need money to scale, but their pitch should be to philanthropists, not equity investors. Spends time denigrating key competitors.

Funding 98