Remove class-readers
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Need money? Read this!

Berkonomics

Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds. Friends, family and fools: [Email readers, continue here…] This term, although pejorative, describes the typical mix of early investors in a small, young growing business.

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Think ahead when raising your early investments

Berkonomics

Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. First, VC’s in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s). What VC’s can and cannot do. How did you structure your first round? .

Invest 120
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Have you heard the rule of the thirds?

Berkonomics

We should think of the creation and growth of a high valued company as the sum of three parts, with three distinct classes of participants helping to make real value out of a raw start-up. It is normal for the first round of organized angels to expect to purchase between twenty and thirty-five percent of the company with their investment.

Startup 240
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Does your business need money? Read this!

Berkonomics

Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing.

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What’s the minimum information to give your investors?

Berkonomics

On the other side, entrepreneurs and CEO’s usually have a natural fear of giving too much information to us investors after the initial investment is received. Email readers, continue here…] Prepare for your annual meetings well. Requirements created by investment documents. But don’t worry.

Class 120
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Once again: Is it the jockey or the horse?

Berkonomics

If you are looking for money, this question will certainly come up in one form or another when you approach professional or organized angel or VC investors. I would not, nor would most all of those I co-invest with. Concentrate on a world class team. A more complex answer.

article thumbnail

Once again: Is it the jockey or the horse?

Berkonomics

If you are looking for money, this question will certainly come up in one form or another when you approach professional or organized angel or VC investors. I would not, nor would most all of those I co-invest with. Concentrate on a world class team. A more complex answer.