Remove about
article thumbnail

When should you go for equity financing?

Berkonomics

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Friends and family investors. Some can supply more when syndicating with other such groups. Venture farms.

Equity 156
article thumbnail

Need money? Read this!

Berkonomics

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). There is a lot to say about retaining control. For those of you who fit that description, nice work.

Insiders

Sign Up for our Newsletter

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

article thumbnail

The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Startup 354
article thumbnail

Equity financing: great for rapid growth startups

Berkonomics

There are three classes of equity investors for early stage businesses that we have not yet considered. Second, there is a rather new term for those large, individual investors who are usually former entrepreneurs made rich through sale of their previous ventures. Raising money'

Equity 232
article thumbnail

VC investors: Don’t be greedy even if you can.

Berkonomics

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

article thumbnail

What Makes an Entrepreneur? Four Letters: JFDI

Both Sides of the Table

(In case it’s not obvious it’s a play on the Nike slogan, “Just Do It.&# ) I believe that being successful as an entrepreneur requires you to get lots of things done. Entrepreneurs make fast decisions and move forward knowing that at best 70% of their decisions are going to be right. This paralyzes most people.

article thumbnail

Sell at the top? Avoid the race to zero!

Berkonomics

Those of us in the business of calculating (guessing) this mythical peak in value often make the same mistake as our entrepreneurs. So, the question: load up with more equity and dilution? What about those unicorns? How do you know when you are at or near that right point to sell for maximum value? Or sell now?

Pricing 156