Startup Professionals Musings

DECEMBER 16, 2017

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). Thus investing in startups should always be approached as a low odds game.

Angel Investor 190

Angel Investor Accredited Investor IRR Angel Groups 190

Startup Professionals Musings

MARCH 16, 2022

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. This is perhaps the most widely-used source of information on angel investor groups across the world, run by the “Father of Angel Investing in New York,” David Rose.

North America 337

North America Accredited Investor Angel Investor Angel Groups 337

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”.

Accredited Investor 52

Accredited Investor SEC Securities and Exchange Commission Private Placement 52

Startup Professionals Musings

APRIL 10, 2016

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Up and Running

SEPTEMBER 10, 2014

According to the Angel Capital Association: Angels (private money) invest in 55,000 startups each year versus 1,500 companies by VC (venture capital) funding. million people qualify as accredited investors. However, entrepreneurs still need to approach angel investors offline for larger amounts of capital.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Startup Professionals Musings

MARCH 16, 2016

Whether you are talking to peers, competitors or investors, you as an active entrepreneur will be judged on your familiarity with today’s startup and funding jargon. This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Could your startup be the next one? Sweat equity.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

APRIL 8, 2015

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

OCTOBER 30, 2017

One of the most common complaints I hear from new business owners and startups is about the pain and difficulty raising capital. Based on my experience with startups, I’m a strong believer that there are far better alternatives available, if you think outside the box. Prepare properly for meeting and closing with investors.

Technical Review 220

Technical Review Accredited Investor Due Diligence Equity 220

Scott Edward Walker

FEBRUARY 1, 2014

My law firm recently entered into a new partnership with This Week in Startups and sponsored their live fireside chat last month in San Francisco with authors Nick Bilton and Brad Stone. Prior to the event, I conducted a legal workshop entitled “The 5 Biggest Legal Mistakes That Startups Make,” which I have uploaded below.

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Scott Edward Walker

FEBRUARY 1, 2014

My law firm recently entered into a new partnership with This Week in Startups and sponsored their live fireside chat last month in San Francisco with authors Nick Bilton and Brad Stone. Prior to the event, I conducted a legal workshop entitled “The 5 Biggest Legal Mistakes That Startups Make,” which I have uploaded below.

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Startup Professionals Musings

JUNE 5, 2015

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). Thus investing in startups should always be approached as a low odds game.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

Startup Professionals Musings

FEBRUARY 21, 2015

Yet as I mentor entrepreneurs around the country, it still seems to be one of the least understood approaches to startup funding, with more myths than accredited angels and professional venture capital investors combined. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge.

Accredited Investor 120

Accredited Investor SEC Equity Europe 120

Startup Professionals Musings

MAY 9, 2014

Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). Thus investing in startups should always be approached as a low odds game.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

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.

Accredited Investor 265

Accredited Investor Venture Capital Syndication Syndicate 265

techcrunch.com

APRIL 26, 2013

For Startups And Winning SEC Approval, AngelList Opens Up Investment Platform To More Companies. In December, AngelList , a service that matches early-stage startups with investors, debuted the ability to allow accredited investors to actually invest in startups on the platform with as little as $1,000.

SEC 61

SEC Accredited Investor San Diego New York City 61

Startup Professionals Musings

FEBRUARY 27, 2023

As a startup advisor and investor, living in an area with several local universities, I’m continually surprised by how little many entrepreneurs know about the resources available from these institutions. Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations.

Arizona 276

Arizona Intellectual Property Accredited Investor Entrepreneur 276

ReadWriteStart

APRIL 26, 2011

It's still not the accepted or the obvious choice for funding your startup, however. But news that the Austin, Texas-based MicroVentures has successfully raised its first $150,000 for three startups via its crowdfunding platform suggests that these alternatives might be viable after all. It also allows them to invest smaller amounts.

Software Review 122

Software Review Accredited Investor Due Diligence Burn Rate 122

Startup Professionals Musings

MARCH 11, 2016

Angel investors are still the lifeblood of early-stage startups, despite the surge of activity in crowdfunding and an increasing early interest from venture capitalists. These are all accredited investors who risk their own money. In today’s world, if your startup is not visible on the Internet, you haven’t started yet.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Gust

JULY 19, 2012

It’s going to be very crowded, very noisy, and probably not very lucrative for the funders (although it will likely put quite a bit of cash into new startups.) 4) Accredited Investor funding portals, which may or may not register under the JOBS Act, but will restrict themselves to the exempt, upper part of the market.

Accredited Investor 144

Accredited Investor SEC Equity Early Stage 144

Startup Professionals Musings

NOVEMBER 20, 2021

I often recommend business networking as the most effective way for a startup founder to find investors, advisors, and even key executive candidates. Here are a few of the “do’s”: Post your profile on LinkedIn and Twitter, and join in startup discussions. Join a local investment group.

Accredited Investor 357

Accredited Investor Elevator Pitch Entrepreneur SEC 357

Startup Professionals Musings

NOVEMBER 25, 2020

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this? Risk is increased.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Startup Professionals Musings

APRIL 11, 2021

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Many startups delay incorporation until the first formal round of financing, which is too late. Trouble with the IRS over Founders stock value.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

The Startup Lawyer

AUGUST 20, 2010

The Dodd-Frank Wall Street Reform and Consumer Protection Act probably won’t fix or prevent anything, but it was successful at modifying a portion of the definition of an accredited investor. ADJUSTING THE ACCREDITED INVESTOR STANDARD. (a) Tags: Startup Issues accredited investors.

Accredited Investor 66

Accredited Investor .Net SEC Security 66

Startup Professionals Musings

FEBRUARY 13, 2011

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. This one claims to be the world’s largest angel investor network, with 850 accredited investor members throughout twenty one chapters on three continents.

Angel Investor 255

Angel Investor North America South America Accredited Investor 255

Startup Professionals Musings

AUGUST 6, 2023

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this? Risk is increased.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

The Startup Magazine

FEBRUARY 24, 2021

Startups need funding to bring their product to market and get to profitability. But how do you go about finding startup investors? There are multiple types of investors and each one is different. Angel investors. In many cities with a startup scene, there are angel investors. Personal investors.

Accredited Investor 90

Accredited Investor Angel Investor Initial Public Offering Due Diligence 90

Startup Professionals Musings

JUNE 6, 2022

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. First of all, it’s more of an investment in people than in a business, since the startup is usually an idea barely half-baked when they need your money. Join an existing angel investor group.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

Startup Professionals Musings

FEBRUARY 24, 2014

If your startup is looking for an Angel investor, it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up. More than 200,000 startups have already used the platform to connect with 45,000 investors. Or does it? Keiretsu Forum. Angel Capital Association (ACA).

North America 289

North America Rhode Island Accredited Investor Angel Investor 289

David Teten

MAY 9, 2012

VCAP©, the first program of its kind, bridges the gap between venture capitalists and angel investor networks and women and diverse entrepreneurs, many of whom have not traditionally had access to these sources of capital. Women-owned businesses, according to the Forte Foundation represent about 775,000 new startups per year.

Venture Capital 154

Venture Capital Programming Accredited Investor New York 154

Startup Professionals Musings

JUNE 14, 2019

If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. This is perhaps the most widely-used source of information on angel investor groups across the world, run by the “Father of Angel Investing in New York,” David Rose.

Angel Investor 241

Angel Investor North America Accredited Investor Angel Groups 241

Startup Professionals Musings

JANUARY 27, 2021

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.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

MAY 30, 2020

As a startup advisor and investor, living in an area with several local universities, I’m continually surprised by how little many entrepreneurs know about the resources available from these institutions. Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations.

Arizona 310

Arizona Intellectual Property Accredited Investor Dividend 310

This is going to be BIG.

JULY 13, 2023

I was no longer the CEO of my startup. One of the reasons I’m doing a few coaching assignments is that investor education and support is an area I'm very interested in. If you know anyone at the early stages of their investing career or folks who are looking to break in that are part of the startup ecosystem as scouts, mentors, etc.

Accredited Investor 78

Accredited Investor Non-Compete Early Stage Salary 78

Scott Edward Walker

JUNE 30, 2011

Fundraising Tips Tip #1: Only Offer and/or Sell Securities to “Accredited Investors”. The most common exemption for startups is the so-called “private placement” exemption under Section 4(2) of the Securities Act of 1933 and/or Regulation D , the safe harbor promulgated thereunder.

Securities and Exchange Commission 76

Securities and Exchange Commission Accredited Investor Private Placement Finder 76

YoungUpstarts

NOVEMBER 29, 2011

Entrepreneur Finder ( www.EntrepreneurFinder.com ) is a free interactive resource for entrepreneurs, skilled professionals, students and investors to find each other and designed to help startup companies grow. A startup looking for investment, mentorship, or specific talent to help grow your company?

Finder 232

Finder Entrepreneur Accredited Investor Silicon Valley 232

Startup Professionals Musings

NOVEMBER 1, 2013

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. First of all, it’s more of an investment in people than in a business, since the startup is usually an idea barely half-baked when they need your money. Join an existing Angel investor group.

Accredited Investor 219

Accredited Investor Liquidity Event SEC Stock 219

SiliconHills

OCTOBER 29, 2018

Sputnik ATX, an Austin-based accelerator, held its second Demo Day last week featuring presentations from the five startups in its latest cohort. The invite-only event for accredited investors was held at Sputnik ATX’s offices in downtown Austin. The companies gave 15-minute presentations followed by questions and answers.

Austin 83

Austin Accredited Investor Cofounder Startup 83