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. The payback can be a pointer to a winning strategy, introduction to key investors, or a line of credit for your beginning inventory.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

OCTOBER 16, 2022

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Yet credible reports on current trends tell us just the opposite.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 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. In that spirit, I offer my perspective on ten common startup failure sources that rarely get admitted by entrepreneurs: Choose to skip the written business plan.

Intellectual Property 312

Intellectual Property Startup Angel Investor Viral 312

Startup Professionals Musings

NOVEMBER 9, 2019

Even in this age of globalization and virtualization, the geographic area where you choose to live and work can still make or break your startup business. 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.

Las Vegas 243

Las Vegas Silicon Valley Arizona Montana 243

Startup Professionals Musings

FEBRUARY 29, 2020

One of the myths I often hear as an advisor to many entrepreneurs is that their lifestyle would somehow be better if they could more easily find other people’s money to build their startup. Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt.

Bootstrapping 310

Bootstrapping Advisory Board Startup Venture Capital 310

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Join a startup incubator. Use crowd funding. Get a loan or line-of-credit.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

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. Beyond the core team of two or three startup partners, every startup should seek to “outsource” the rest of their strategic requirements to external business partners.

Cofounder 221

Cofounder Software Review CTO Hire Founder 221

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. In that spirit, I offer my perspective on ten common startup failure sources that rarely get admitted by entrepreneurs: Choose to skip the written business plan.

Intellectual Property 436

Intellectual Property Angel Investor Viral Distribution 436

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

DECEMBER 6, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Join a startup incubator. Use crowd funding to build reserves.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

NOVEMBER 26, 2022

One of the myths I often hear as an advisor to many entrepreneurs is that their lifestyle would somehow be better if they could more easily find other people’s money to build their startup. Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt.

Cost 267

Cost Bootstrapping Advisory Board Startup 267

Startup Professionals Musings

MARCH 26, 2021

As an entrepreneur mentor, my mission is to foster the attributes in you as a startup founder that I believe will lead to success. I know from experience that my friends who are angel investors are looking for the same indications, although none of us has a scorecard , or even know exactly what we are looking for.

Entrepreneur 341

Entrepreneur Angel Investor Partner Software Development 341

Startup Professionals Musings

JULY 11, 2020

As a mentor to aspiring entrepreneurs, I’m always surprised by the fact that some never seem to be able to that first startup going, while many others never seem to stop, starting their second or third initiative before the first one is fully hatched. I’m now convinced that serious entrepreneurs relish the startup process more than success.

Entrepreneur 329

Entrepreneur Intellectual Property Stealth Angel Investor 329

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

AUGUST 13, 2022

Even in this age of globalization and virtualization, the geographic area where you choose to live and work can still make or break your startup business. 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.

Las Vegas 309

Las Vegas Silicon Valley Arizona Montana 309

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

APRIL 29, 2020

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 295

Technical Review Elevator Pitch Angel Investor Startup 295

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

MAY 15, 2019

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. Only then is it time to focus on the get-big-fast strategy, and the transformation of three key areas from startup to a managed growth company. It’s time for a new startup model. Marty Zwilling.

Startup 245

Startup Angel Investor Technical Review Incubator 245

Startup Professionals Musings

JUNE 11, 2022

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.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

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

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. This is the reason that many new startups offer freemium services, and prioritize attracting a large following above making a profit.

Valuation 368

Valuation Technical Review Due Diligence Angel Investor 368

Startup Professionals Musings

SEPTEMBER 12, 2021

As a startup mentor and investor, I am approached regularly by aspiring entrepreneurs who assert that business plans take too much time, are inaccurate, and rarely add value. Most of these scenarios involve attracting outside investors, strategic partners, or key team members: You are the team and you don’t need outside funding.

Business Plan 316

Business Plan Technical Review Angel Investor Due Diligence 316

Startup Professionals Musings

JULY 12, 2021

Use that same technical and business expertise that served you well on this startup to find the next opportunity. 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. Expand your investment alternatives.

Technical Review 417

Technical Review Entrepreneur Due Diligence Institutional Investors 417

Startup Professionals Musings

DECEMBER 30, 2020

Thus I often recommend that before you kick off your own business, you join another startup or existing business to see how things really work. Let me assure you that companies without marketing plans don’t get the attention of either investors or customers. Even the best college degree is not a substitute. Neither is good.

Intellectual Property 432

Intellectual Property Entrepreneur Technical Review Angel Investor 432

Startup Professionals Musings

FEBRUARY 14, 2022

I found their five phases of the process to be compelling, based on my own years of experience mentoring startups: Nail the pain. Only then is it time to focus on the get-big-fast strategy, and the transformation of three key areas from startup to a managed growth company. It’s time for a new startup model. Marty Zwilling.

Angel Investor 359

Angel Investor Technical Review Incubator Business Model 359

Startup Professionals Musings

APRIL 4, 2022

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Join a startup incubator. Use crowd funding. Get a loan or line-of-credit.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Both Sides of the Table

MAY 1, 2014

It’s the company that evokes fear into more startups and venture capitalists looking to fund eCommerce businesses than any other potential competitor. Every pitch I’ve ever seen has led to the, “Would Amazon eventually do this? And could we then compete?” ” type questions. I’m long NY.

Technical Review 380

Technical Review Software Review Cofounder CTO Hire 380

Steve Blank

JANUARY 17, 2023

Three types of organizations – Incubators, Accelerators and Venture Studios – have emerged to reduce the risk of early-stage startup failure by helping teams find product/market fit and raise initial capital. They do the most to de-risk the early stages of a startup. Reducing Startup Risk.

Technical Cofounder 368

Technical Cofounder Intellectual Property Technical Review Incubator 368

Startup Professionals Musings

FEBRUARY 20, 2023

As a mentor to startups, I see more startups that are really an individual professional, marketing themselves as a consultant or freelancer in this new gig economy. Tomorrow you may be looking for a Personal Finance Professional, Health-Care Professional, or even a Startup Professional.

Angel Investor 267

Angel Investor Social Media LLC Viral 267

Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. Don’t wait until you are almost out of cash before managing every dollar spent or looking for the next refueling from investors.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

The Startup Magazine

SEPTEMBER 14, 2024

For new entrepreneurs , the startup phase is one of the most challenging yet exciting stages of launching a business. If you’re struggling to raise capital, here are six practical strategies to obtain startup funding in today’s modern and competitive business world.

Security 158

Security Angel Investor Startup Bootstrapping 158

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

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

Both Sides of the Table

FEBRUARY 20, 2019

If you haven’t raised any money or if you raised a small round from angels or friends & family I would suggest you avoid setting up a formal board unless the people who would join your board are deeply experienced at sitting on startup boards. Who Should be on Your Startup Board? Of course it happens all the time?—?especially

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

Startup Professionals Musings

AUGUST 31, 2019

In the old days, every entrepreneur dreamed of easily taking their startup public, and making it big. Today the rate of startups going public (IPO – Initial Public Offering) is up from the dead zone, but is still half the rate back before 2000. In addition, most ordinary investors are convinced that IPO rewards only go to insiders.

IPO 210

IPO SEC Prospectus Startup 210

YoungUpstarts

JANUARY 11, 2021

If your accounting processes aren’t in order, you may not have a complete picture of your startup’s financial health and could be leaving money on the table. To avoid these common pitfalls — and set up your finances to support your business as it grows — follow these four accounting tips for startups and small businesses.

Small Business 208

Small Business Startup Cofounder Vertical 208