Startup Professionals Musings

OCTOBER 7, 2022

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Both of these will brand you as an amateur to avoid, rather than a savvy business person with an exciting new opportunity. What business milestones have you met?

Funding 121

Funding Startup Equity Invest 121

Startup Professionals Musings

OCTOBER 19, 2022

Even if you ignore all the hype around crowdfunding, there can be no doubt that it is a real alternative for entrepreneurs to achieve visibility and funding today. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge. Startup equity model. Product pre-order model.

Funding 141

Funding Startup Outsource Development Satisfaction 141

Berkonomics

JUNE 8, 2017

For you who fit that description, nice work. It might be useful to list some of the ways in which you can raise money for growth with and without outside investors. You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors.

Venture Capital 266

Venture Capital Class Invest Equity 266

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? Me: At what price? Him: It wasn’t priced. So you did raise with a price. It’s just a maximum price. You’ll find out the minimum when the next round is raised. You’ll find out the minimum when the next round is raised.

Venture Capital 417

Venture Capital Capital Pricing Doc 417

Startup Professionals Musings

FEBRUARY 5, 2021

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping.

Startup 147

Startup Pricing Sales Statistics 147

Startup Professionals Musings

SEPTEMBER 13, 2022

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. For the rest of us, the following suggestions will help you survive the valley of death: Accumulate some resources before you start.

Startup 136

Startup Technical Review Equity Incubator 136

Startup Professionals Musings

OCTOBER 6, 2023

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. If everyone has a different view of reality, you have no reality. Make sure all business processes are documented and integrated.

Technical Review 118

Technical Review Startup Satisfaction Invest 118

Startup Professionals Musings

FEBRUARY 8, 2021

In my experience as an angel investor for new startups, I’m always surprised by how many entrepreneurs are looking for funding without outside advisors. Especially if you are a first-time business owner, the payback for this initiative is well worth the effort and cost. The cost of a co-founder is usually fifty percent of your equity.

Startup 142

Startup Technical Review Equity Entrepreneur 142

Startup Professionals Musings

JANUARY 4, 2020

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Both of these will brand you as an amateur to avoid, rather than a savvy business person with an exciting new opportunity. What business milestones have you met?

Startup 135

Startup Equity Invest Funding 135

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Of course, that means a mindset willing to give up much more equity, and taking on a whole new level of risk.

Startup 151

Startup Course Sales Entrepreneur 151

Startup Professionals Musings

MAY 30, 2022

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Sales 147

Sales Metrics Guide Startup 147

Startup Professionals Musings

JANUARY 20, 2020

Even if you ignore all the hype around crowdfunding, there can be no doubt that it is a real alternative for entrepreneurs to achieve visibility and funding today. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge. Startup equity model. Product pre-order model.

Entrepreneur 129

Entrepreneur Outsource Development Satisfaction Equity 129

Startup Professionals Musings

APRIL 4, 2022

The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. For the rest of us, the following suggestions will help you survive the valley of death: Accumulate some resources before you start.

Tips 104

Tips Startup Technical Review Equity 104

Both Sides of the Table

MAY 13, 2018

The most important advice I could give you before you set out in fund raising mode is to understand that fund-raising a sales & marketing process and needs to be managed. If you don’t believe in your bones that you’re amazing then it’s no wonder you don’t want to sell them on making the investment.”

Venture Capital 332

Venture Capital Funding Startup Sales 332

Startup Professionals Musings

NOVEMBER 4, 2022

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. That’s why investors say they invest in people (bet on the jockey, not the horse), rather than the idea. The industry veteran.

Technical Advisors 123

Technical Advisors Startup Outsource Development High Tech 123

Startup Professionals Musings

JANUARY 24, 2021

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. If everyone has a different view of reality, you have no reality. Make sure all business processes are documented and integrated.

Technical Review 151

Technical Review Startup Satisfaction Invest 151

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D. Perhaps it shouldn’t.

Venture Capital 286

Venture Capital Pricing Technical Review Startup 286

Startup Professionals Musings

DECEMBER 6, 2019

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. For the rest of us, the following suggestions will help you survive the valley of death: Accumulate some resources before you start.

Startup 128

Startup Technical Review Equity Incubator 128

TechCrunch LA

MAY 20, 2021

Eano, she said, offers competitive and transparent pricing so that homeowners aren’t surprised as a remodeling project goes on. We invest in people, and when you can find extremely talented entrepreneurs who have built successful companies and still have the hunger to win, you jump in with a blank check,” he said. “We

Technical Review 185

Technical Review Startup Venture Capital Software Review 185

Startup Professionals Musings

JUNE 12, 2015

Every investor in your startup, even friends and family, normally expects a share of your company (equity), which means your return for all your effort goes down quickly. The indirect costs of time and effort to find the right grant, complete the application and manage the process, even if you win, can be substantial.

Pricing 100

Pricing Equity Technical Review Research 100

Both Sides of the Table

MAY 30, 2015

I’m so tired of seeing young entrepreneurs get screwed by their angel investors on convertible notes and I know I can’t convince you not to do it so I’d like to offer one simple bit of advice to help you avoid getting screwed (at least on one part of your note). It’s the silent screwing that stings.

Entrepreneur 150

Entrepreneur Pricing Venture Capital Angel 150

Both Sides of the Table

JUNE 22, 2011

This was an audience of mostly first-time entrepreneurs. If you are interested the Vimeo is here. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. I recently spoke at the Founder Showcase at the request of Adeo Ressi. I believe that.

Pricing 309

Pricing Marketing Startup Venture Capital 309

Both Sides of the Table

SEPTEMBER 29, 2013

If you track the venture capital industry it would be hard to miss the conversation going on this week over AngelList “Syndicates.” So there you have it. AngelList 101 : As you know, AngelList is a platform where angels can invest in semi-screened tech deals. Must be doing something right!

Venture Capital 356

Venture Capital Invest Course Technical Review 356

Both Sides of the Table

JUNE 5, 2015

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation.

Venture Capital 150

Venture Capital Pricing Startup Invest 150

InfoChachkie

FEBRUARY 25, 2013

Someone on Quora recently asked me to answer the following question: Why Do Digital Entrepreneurs Hate MBAs? Tech entrepreneurs' consternation with MBAs does not rise to the level of loathing. If you haven't already subscribed yet, subscribe now for free weekly Infochachkie articles!

Entrepreneur 279

Entrepreneur Technical Review Case Study Class 279

InfoChachkie

JULY 11, 2011

Startup blogger and venture capitalist extraordinaire Fred Wilson recently published a great article on Venture Debt, which I strongly suggest you review HERE. As Fred points out, many entrepreneurs hear the word “debt” and promptly run the other direction. Go ahead, I will wait…. welcome back. Enter venture debt.

Equity 235

Equity Startup Invest Funding 235

Startup Professionals Musings

SEPTEMBER 26, 2015

Most entrepreneurs looking for an investor can tell you how much money they need, but few have given much thought to what they are willing to give up for it. Investors, on the other hand, look at the money figure, and even the equity, as the easy part. This is a loan with an option to convert to equity at a later date.

Demand 105

Demand Startup Equity Invest 105

Both Sides of the Table

MAY 23, 2010

The traditional way that this type of financing is offered is what is known as “convertible debt.&# This means that the investment does not have a valuation placed on it. a loan) that is later converted to equity at the time of the next financing. Maybe the market views this as not worth the price you paid?

Startup 290

Startup Funding Venture Capital Pricing 290

Both Sides of the Table

APRIL 14, 2010

It’s meant to be a bit provocative but the reality is that I give this advice to entrepreneurs all the the time and I usually leave the “e&# off of the end. I normally offer this advice in the capacity of really wanting to help entrepreneurs so please bear with me. Let’s say the company had raised $15 million.

Venture Capital 289

Venture Capital Capital Startup Pricing 289

Startup Professionals Musings

FEBRUARY 9, 2020

In my years of advising startups and occasional investing, I’ve seen many great ideas start and fail, but the right team always seems to make good things happen, even without the ultimate idea. That’s why investors say they invest in people (bet on the jockey, not the horse), rather than the idea. The industry veteran.

Technical Advisors 123

Technical Advisors Outsource Development Startup High Tech 123

Startup Professionals Musings

JUNE 30, 2019

The problem is that professional investors (angels and venture capitalists) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. For the rest of us, the following suggestions will help you survive the valley of death: Accumulate some resources before you start.

Startup 87

Startup Technical Review Equity Incubator 87

Startup Professionals Musings

MARCH 7, 2015

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Both of these will brand you as an amateur to avoid, rather than a savvy business person with an exciting new opportunity. What business milestones have you met?

Help 104

Help Startup Equity Entrepreneur 104

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Define equity type.

Invest 91

Invest Angel Startup Pricing 91

Both Sides of the Table

APRIL 14, 2012

Clichés abound about, “You know what would be cool? 99.9999% of you won’t be contemplating raising capital at $500 million any time soon or selling for a billion. ” In this week’s discussion with entrepreneurs I think the word impending wasn’t used often enough. .” You are not Instagram.

Venture Capital 316

Venture Capital Pricing Social Network Acquisition 316

Startup Professionals Musings

SEPTEMBER 1, 2019

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. That’s where I see too much entrepreneur burnout, growth plateaus, and founders being replaced, to their chagrin. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Startup 97

Startup Sales Metrics Guide 97

Both Sides of the Table

SEPTEMBER 28, 2014

Here’s overall what you need to know. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. Gross burn is the total amount of money you are spending per month. Net burn is the amount of money you are losing per month. Gross Burn vs. Net Burn.

Startup 383

Startup Company Companies .Net 383

Both Sides of the Table

OCTOBER 11, 2009

It’s mostly done by first-time entrepreneurs who want to persuade (bribe?) And if you decide to have one how do you best implement it? They are usually offered around 0.25% of the companies equity in exchange for their role and I’ve seen many companies hand out a total of 2% to advisers. Not enough time.

Startup 306

Startup Venture Capital Equity Technical Review 306