Startup Professionals Musings

SEPTEMBER 11, 2023

As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. In reality, crowdfunding has become a major startup funding vehicle, expected to reach $3.62

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Startup Professionals Musings

JULY 16, 2012

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Don’t be embarrassed, since even professional investors are often confused these days by the new terms, as well as old terms used with new meanings. Early-stage startup.

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Startup Professionals Musings

JANUARY 12, 2013

Many entrepreneurs I know don’t realize that the language they learned in the corporate world, or even their recent MBA class, won’t get them ahead in the startup world today. Even if you have heard some of the new terms, but can’t explain how, when, and why they are relevant to your startup, you may be in jeopardy. Startup pivot.

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Startup Professionals Musings

OCTOBER 8, 2023

contributes more than $25 billion to fund 70,000 startups every year. In fact, there are a few key sites to help you find angels, including AngelList and Gust , but these don’t tell you very much about how angels work, and how to find the right ones for your startup. Their realm fits between crowdfunding and venture capital sources.

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View from Seed

SEPTEMBER 20, 2017

For example, our firm is an investor in Fig , a crowdfunding platform for video games with a model that combines individual backing with rewards and the opportunity for non-accredited investors to invest in obtaining a share of future revenues.

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Scott Edward Walker

NOVEMBER 2, 2011

I’ve been a corporate lawyer for 17+ years, and there are certain fundamental legal mistakes that I’ve seen startups repeatedly make. Accordingly, I thought it would be helpful to provide a simple checklist for startups , which includes links to prior posts for a more detailed discussion.

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Gust

JULY 8, 2012

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Don’t be embarrassed, since even professional investors are often confused these days by the new terms, as well as old terms used with new meanings. Early-stage startup.

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Early Stage Finance Seed Stage Entrepreneur 177

Scott Edward Walker

AUGUST 30, 2020

This past Wednesday, the Securities and Exchange Commission (SEC) adopted amendments expanding the definition of “accredited investor” to include individuals who hold certain professional certifications/licenses or have certain “credentials,” as determined by the SEC. Current Definition of “Accredited Investor”.

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VC Cafe

JULY 4, 2012

Amongst the different types of crowdfunding: Donation, Reward, Lending and Equity, the latter is on the rise as a fundraising mechanism for European startups. Entrepreneurs are unable to access debt financing (bank loans) in the early stages of the startup, due to the risky nature of their business and typically lack of revenue.

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ReadWriteStart

AUGUST 16, 2019

Less risk for the new startup investors. According to Entrepreneur, “ Seventy-five percent of venture-backed startups fail.” ” Investing in startups is a risky affair, yet investors are will to take these risks because of the potential of significant upsides. ” Andy Pandharikar, Commerce.AI

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Startup Professionals Musings

FEBRUARY 16, 2015

But many have no insight or connections to the ethereal angel investment community, which actually funds more startups then all other venture sources combined (over $25 billion annually). By definition, angels are accredited investors, who invest their own money for a percentage of the business.

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Startup Professionals Musings

DECEMBER 16, 2015

Boy wearing Oculus Rift via Wikipedia As an advisor to many entrepreneurs, I still hear frequently the irrational exuberance that crowdfunding is the quick alternative for startups that are passed over by overly demanding angels or venture capital investors. Startups need to build a large passionate group of fans before the campaign.

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Startup Professionals Musings

APRIL 25, 2016

If you expect an equity investment from reputable investors for your new startup, you need to know the boundaries that often limit their interest. In the jargon of investors, certain businesses may be viable but not fundable. Outside investors bet more on the team than the solution.

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Up and Running

SEPTEMBER 23, 2013

Previously, businesses seeking to raise capital were required to either pitch their plans exclusively to so-called accredited investors—individuals with at least $1 million in net worth (excluding their primary residence) or $200,000 in annual income—or offer a regulated security (such as stocks or corporate bonds).

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Growthink Blog

DECEMBER 11, 2012

The Jumpstart Our Business Startups Act (called the JOBS Act) was passed with support from Republicans and Democrats alike and signed by President Obama in April 2012. You can receive funds from people of all income ranges, which makes the pool of potential investors MUCH bigger.

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Growthink Blog

FEBRUARY 21, 2013

As you may recall from last year, the Jumpstart Our Business Startups Act (called the JOBS Act) was passed and signed by President Obama in April, 2012. Rather, you will be able to get funding from people of all income ranges, which makes the pool of potential investors MUCH bigger. So, what's the latest? Remember that.

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Equity Securities and Exchange Commission SEC Accredited Investor 74

Growthink Blog

AUGUST 9, 2012

The Jumpstart Our Business Startups Act (called the JOBS Act) was passed with support from Republicans and Democrats alike and signed by President Obama in April, 2012. You can receive funds from people of all income ranges, which makes the pool of potential investors MUCH bigger. Remember that.

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Scott Edward Walker

OCTOBER 27, 2015

I get calls and questions all the time about our Startup Package and, accordingly, I put together a brief clip from the podcast “ This Week in Startups ” which should be helpful. Indeed, we have done more than 300 Startup Packages and the appeal is obvious: no billable hours. Legal Checklist for Startups. v=N1A44ShZfWo.

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Intellectual Property Accredited Investor Vesting Delaware 40

thebarefootvc

JUNE 4, 2018

EOS parent company Block.one also announced several partnerships to invest in startups and developers building on their platform. While our results could be an indication of bubbles, they are also consistent with high compensation for risk for investing in unproven pre-revenue platforms through unregulated offerings.”. The post ICOs 2.0

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Venture Chronicles

MARCH 23, 2010

The visa that this act would empower isn’t new either, it is the EB-5 visa for foreign investors who commit at least $500k of capital and create 10 jobs according to a complex matrix of “allowed activities&# dependent on whatever regional center the investment is located in.

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www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. I dont mean to suggest that our investors were nothing but a dragon us. Many are underfunded.

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Technical Review Startup Software Review Angel Investor 76

Hippoland

JULY 24, 2018

more on this later) Much like running a product-startup, you’re your own boss, so you sometimes end up working really hard and at all hours depending on where you are in your fund life cycle. In fact, much like startups, I’ve heard that 9 in 10 VCs will not even get to 1x returns! You can’t throw in the towel.

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Hippoland

JULY 24, 2018

more on this later) Much like running a product-startup, you’re your own boss, so you sometimes end up working really hard and at all hours depending on where you are in your fund life cycle. In fact, much like startups, I’ve heard that 9 in 10 VCs will not even get to 1x returns! You can’t throw in the towel.

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Salary Capital Call Bootstrapping Cofounder 48

Startup Professionals Musings

AUGUST 12, 2013

If your startup is looking for an Angel investor, does it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up? Here are five key things you need to know to quickly find the right Angel for your startup: Angels invest in people, more often than they invest in ideas.

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Ben's Blog

MAY 24, 2021

Small” IPOs — companies with less than $50m in annual revenue at the time of IPO – have declined from more than 50% of all IPOs in the 1980-2000 timeframe to about 25% of IPOs from 2001-2016; Companies are staying private much longer — the median time to IPO from founding hovered around 6.5

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The Next Web

AUGUST 14, 2013

But since I’m relatively fresh off of the experience I get asked by first-time founders how they should go about raising money for their startup. When we went out to raise money, we raised with only a couple thousand dollars in monthly recurring revenue. You don’t need to be in SF or NY to get your startup off the ground.

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Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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Private Equity Valuation Cap Table Accredited Investor 118

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). composed of these investors and management. Often private equity investors will want control of the business as well.

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Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69