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Several more real costs of taking outsider investments.

Berkonomics

The investor organization is granted the seat as long as the investment remains, and the documents often name the first representative assigned by the investor group to the position. Almost always, professional investors, including angel groups and venture capitalists, also require at least one seat on the corporate board.

Invest 243
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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
Insiders

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10 Tips To Ensure That Your New Venture Is Investable

Startup Professionals Musings

Investors don’t invest in services startups. Here are some pragmatic tips on how to make your startup more scalable and investable: If you need investors, start with a scalable idea. These are more likely scalable and investable. Just because all your buddies think an idea is cool, that doesn’t mean it is scalable.

Tips 135
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The Changing Venture Landscape

Both Sides of the Table

On the one hand, you’re over paying for every investment and valuations aren’t rational. On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history. How our VC Firms Like Ours Organizing to Meet the Challenges?

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What are the costs of taking investor money?

Berkonomics

The investor organization is granted the seat if the investment remains, and the documents often name the first representative assigned by the investor group to the position. A seat on your board? In later insights, we will explore the legal and ethical responsibilities of board members.

Sales 156
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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. 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. There is a lot to say about retaining control.

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Be careful about equity and options!

Berkonomics

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Pricing your options: The price per share for option grants is also an important consideration.

Equity 156