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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? Are you flexible on the terms of the investment?

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? Are you flexible on the terms of the investment?

Startup 135
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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? Are you flexible on the terms of the investment?

Help 104
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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

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
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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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5 Clues To Investor-Friendly Financial Estimates

Startup Professionals Musings

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Gross margins greater than 50%.

Equity 99