Startup Professionals Musings

SEPTEMBER 13, 2022

The bad news is that the valley’s depth before real revenue, considering the high costs of marketing, manufacturing, and sales, can still add up to $500K, on up to $1 million or more, before you will be attractive to angel investors or venture capital. It’s the time when you create tremendous value out of nothing.

Intellectual Property 341

Intellectual Property Technical Review Startup Incubator 341

Startup Professionals Musings

MAY 17, 2020

Every entrepreneur I know has their favorite excuse for a previous failure – an investor backed out, the economy took a downturn, or a supplier delivered bad quality. I certainly agree that starting a business is fraught with risk, and none of us get it all right the first time.

Intellectual Property 436

Intellectual Property Angel Investor Viral Distribution 436

Startup Professionals Musings

JULY 12, 2021

If your business success so far is based on family and Angel investors, perhaps it’s time to start working with institutional investors and external business partners. With each new skill you acquire, your likelihood of long-term success is improved. Expand your investment alternatives.

Technical Review 417

Technical Review Entrepreneur Due Diligence Institutional Investors 417

Startup Professionals Musings

DECEMBER 30, 2020

Let me assure you that companies without marketing plans don’t get the attention of either investors or customers. As an angel investor myself, I’ve often heard the argument that your solution has no competition. Don’t under-estimate or ignore your competitors. Neither is good.

Intellectual Property 432

Intellectual Property Entrepreneur Technical Review Angel Investor 432

Startup Professionals Musings

SEPTEMBER 12, 2021

You need an investor, and want a document to mass-mail to everyone. Most VCs and Angel investors don’t read unsolicited proposals, unless they have met you first, or have a glowing recommendation from another investor or acquaintance. You need an investor, and want to solicit professionals online.

Business Plan 316

Business Plan Technical Review Angel Investor Due Diligence 316

Startup Professionals Musings

FEBRUARY 1, 2021

Here are the key considerations from my perspective: Dealing with known or trusted investors and advisors. If you are approaching a recognized venture capital group, or even an accredited angel investor, a non-disclosure agreement is counter-productive.

Non-disclosure Agreement 399

Non-disclosure Agreement Technical Review Due Diligence Angel Investor 399

Startup Professionals Musings

JANUARY 18, 2020

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage angel investors.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

DECEMBER 6, 2019

The bad news is that the valley’s depth before real revenue, considering the high costs of marketing, manufacturing, and sales, can still add up to $500K, on up to $1 million or more, before you will be attractive to angel investors or venture capital. It’s the time when you create tremendous value out of nothing.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Both Sides of the Table

MAY 1, 2014

So today I’m excited to announce that Upfront Ventures is leading an $8 million round with some amazing co-investors including Founder’s Fund, OATV, Lowercase, High Peaks, Collaborative Fund and many great angel investors.

Technical Review 380

Technical Review Software Review Cofounder CTO Hire 380

Startup Professionals Musings

JULY 11, 2020

As an angel investor, you can bet I wasn’t convinced he would ever start his next proposal. Plan to learn from what doesn’t work, but never give up. Based on my experience, most startup failures occur simply because the founder gives up too soon, without exploring creative alternatives.

Entrepreneur 329

Entrepreneur Intellectual Property Stealth Angel Investor 329

Startup Professionals Musings

AUGUST 19, 2020

For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. As a rule of thumb, your monthly burn rate should be less than 10 percent of your last funding raise or starting cash in the bank.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

APRIL 18, 2021

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Some startups do nothing to prepare for the due diligence process, assuming the people and business plan documents will speak for themselves.

Technical Review 380

Technical Review Due Diligence Term Sheet Angel Investor 380

Startup Professionals Musings

APRIL 25, 2020

As an angel investor, I quickly learned that luck has very little to do with it, and I now look for some personal characteristics and leadership styles that separate the potential winners from the losers. These differences are the reason that investors say that they invest in people, rather than ideas.

Technical Review 308

Technical Review Kentucky Due Diligence Japan 308

Startup Professionals Musings

SEPTEMBER 8, 2019

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. The simple reason is that it’s impossible to make money for investors when the goal of the company is to not make money. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

Startup Professionals Musings

FEBRUARY 14, 2022

At the same time, more entrepreneurs are jumping into the fray, and less money is available from investors. In my view, savvy “super angel” investors such as Mike Maples, Jr. , It’s time for a new startup model. and leading incubators such as Y Combinator , are already on this one. How far behind is your startup?

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

AUGUST 13, 2022

I still have to tell some entrepreneurs that even with the best idea, they have to move to Silicon Valley to find the investors they need, or they need to move to the U.S. get the attention of the market they choose.

Las Vegas 309

Las Vegas Silicon Valley Arizona Montana 309

Startup Professionals Musings

FEBRUARY 8, 2021

In my experience as an angel investor for new startups, I’m always surprised by how many entrepreneurs are looking for funding without outside advisors. An experienced Board can give them credibility, as well as advice on the many pitfalls of starting a new company.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

JANUARY 21, 2023

The average length of a funding pitch to angel investors is ten minutes. The biggest complaint I hear from fellow investors is that startup founders often talk way too long, and neglect to cover the most relevant points. Even if you have booked an hour with a VC, you should plan to talk only for the first fifteen minutes.

Technical Review 369

Technical Review Elevator Pitch Angel Investor Matching 369

Startup Professionals Musings

MARCH 12, 2022

In my experience as an angel investor to startups, goodwill disagreements are perhaps the most common reason that you will fail to close interested investors as an entrepreneur. The challenge is what and how to highlight these to your advantage.

Valuation 368

Valuation Technical Review Due Diligence Angel Investor 368

Startup Professionals Musings

JULY 13, 2022

You need to evaluate the tradeoffs of getting investment capital from angel investors and crowdsourcing. Effective scaling and growth often requires more investment than is available from early organic returns. These are both a source of new marketing strategies and feedback. Commit to and communicate a higher-level purpose.

Technical Review 355

Technical Review Social Media Channel Flash 355

Startup Professionals Musings

FEBRUARY 20, 2023

Many of these new entrepreneurs come to me looking for an angel investor or crowdfunding, which will never happen. Investors don’t fund entrepreneurs offering services, since these don’t scale, don’t have large margins, and need just a customer contract to start.

Angel Investor 267

Angel Investor Social Media LLC Viral 267

Startup Professionals Musings

SEPTEMBER 4, 2019

Based on my recent experience as an angel investor, and advisor to new business owners, I now recommend that all entrepreneurs, especially introverts, learn and practice the discipline they need to build and nurture relationships with key constituents through the following activities: Formalize a mentoring relationship with someone you trust.

Entrepreneur 261

Entrepreneur Elevator Pitch Angel Investor Incubator 261

Startup Professionals Musings

FEBRUARY 3, 2023

As an angel investor, I quickly learned that luck has very little to do with it, and I now look for some personal characteristics and leadership styles that separate the potential winners from the losers. These differences are the reason that investors say that they invest in people, rather than ideas.

Technical Review 269

Technical Review Kentucky Due Diligence Japan 269

Startup Professionals Musings

JANUARY 13, 2020

As a startup mentor, I’m always amazed that some entrepreneurs seem to be an immediate hit with investors, while others struggle to get any attention at all. Finally I realized that venture capital and angel investors are actually humans, despite some views to the contrary.

Intellectual Property 316

Intellectual Property Angel Investor Early Stage Venture Capital 316

Startup Professionals Musings

JANUARY 22, 2020

As a long-time advisor to entrepreneurs, and a former angel myself, I still find startups confused about the definition of an angel investor, and how and when to attract one. Here are some key points to consider in finding one for you: Look for accredited angels and groups rather than individuals.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Startup Professionals Musings

FEBRUARY 22, 2021

Most entrepreneurs have learned that it’s almost always quicker and easier to get cash from someone you know, rather than angel investors or professional investors (VCs). In fact, most investors “require” that you already have some investment from friends and family before they will even step up to the plate.

Technical Review 338

Technical Review Elevator Pitch Due Diligence Angel Investor 338

Startup Professionals Musings

APRIL 4, 2022

The bad news is that the valley’s depth before real revenue, considering the high costs of marketing, manufacturing, and sales, can still add up to $500K, on up to $1 million or more, before you will be attractive to angel investors or venture capital. It’s the time when you create tremendous value out of nothing.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

MAY 14, 2023

For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. As a rule of thumb, your monthly burn rate should be less than 10 percent of your last funding raise or starting cash in the bank.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

JUNE 29, 2022

In that environment, you need to look broadly and work effectively on all the available sources of capital, including friends and family, angel investors, and strategic partners. In the business world, your ability to raise money is often paramount to your success. Intelligence and insight: book and street smarts.

Silicon Valley 325

Silicon Valley Angel Investor Technical Review Boston 325

Startup Professionals Musings

FEBRUARY 29, 2020

Maintaining your team’s passion and freedom to focus first on innovating for customers are only a couple of the reasons for thinking hard before you seek money from crowdfunding, angel investors, venture capital organizations, or attempt to qualify for a public stock offering.

Bootstrapping 310

Bootstrapping Advisory Board Startup Venture Capital 310

Startup Professionals Musings

AUGUST 24, 2022

As a business consultant and angel investor, I often ask for your own assessment of marketing ROI , or customer acquisition cost (CAC). While I realize that a high level of certainty in these numbers is an elusive goal, the value of doing the work, and benchmarking your business against competitors is well worth the effort.

Acquisition 250

Acquisition Cost Customer Sales Cycle 250

Startup Professionals Musings

JULY 15, 2019

As a long-time business advisor and angel investor, I’m a believer that “two heads are better than one” in building a new business. Very few entrepreneurs have the range of skills and experience to be the solution creator as well as business creator, or operational as well as sales leader.

Cofounder 221

Cofounder Software Review CTO Hire Founder 221

Startup Professionals Musings

FEBRUARY 15, 2020

As an angel investor and a mentor to entrepreneurs I still see this every day. In this world of constant change, new technologies, and a thousand cultures, it’s evident and somehow comforting to me that the basic rules for business prosperity really haven’t changed in the last hundred years.

Technical Review 315

Technical Review Angel Investor Differentiation Business Model 315

Startup Professionals Musings

AUGUST 26, 2019

As an advisor to business owners, and an occasional angel investor, my job is to separate the actual challenges from the common misconceptions that distract many promising entrepreneurs while building the leadership team required for your solution, marketing, and finance success.

Bandwidth 246

Bandwidth Software Review Salary Angel Investor 246

Steve Blank

JANUARY 17, 2023

The culmination of this bootcamp is a “demo day” where all startups in the cohort have a few minutes to pitch their companies to venture capitalists and angel investors. (In Accelerators provide these teams with technical and business expertise and connect them to a network of other founders and advisors.

Technical Cofounder 368

Technical Cofounder Intellectual Property Technical Review Incubator 368

Startup Professionals Musings

FEBRUARY 12, 2023

Every entrepreneur I know has their favorite excuse for a previous failure – an investor backed out, the economy took a downturn, or a supplier delivered bad quality. I certainly agree that starting a business is fraught with risk, and none of us get it all right the first time.

Intellectual Property 312

Intellectual Property Startup Angel Investor Viral 312

Startup Professionals Musings

MAY 31, 2023

Based on my own career as a business owner and angel investor, in this age of change, I still see key successes and growth from the same team member work qualities.

Flash 303

Flash Angel Investor Technical Review Social Media 303