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Your board should protect you!

Berkonomics

Even venture capitalists who sit on boards where they have significant investments often forget this point. They write in their investment documents that they will occupy a seat on the board for as long as they are invested in the company, thinking of this as a protection for their investment and tool for them to influence growth.

Class 282
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What do you give up when you take outside investors?

Berkonomics

Setting your expectations Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first. There is no middle ground. Resetting your priorities Taking money from these sources involves resetting priorities over time. The newest investor has the power. Draconian terms?

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

Berkonomics

Especially when outside investors, venture capitalists or angels have put in substantial money, and the sales price is not enough to give them a reasonable return for the time and money invested, these investors can be – in a word – greedy. The order of liquidation or payout. and there are those accumulated dividends.

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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. But few businesses grow into the sweet spot of $20 million to $30 million in worth to an ultimate buyer without the injection of outside capital.

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Think ahead when raising your early investments

Berkonomics

Some businesses just can’t fit within the angel capital or friends and family model for raising funds. 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. What VC’s can and cannot do.

Invest 120
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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 do you give up when taking outside investors?

Berkonomics

Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first. From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering.