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8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

How complex is the capitalization table? These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

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8 Red Flags To Evaluate Before Pledging To A Startup

Startup Professionals Musings

How complex is the capitalization table? These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

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How to Pick the Right Attorney For Your Startup

Up and Running

Picking the right attorney in your startup is as important as picking the right business partner. My business partner and I made many mistakes in our first tech startup, and so many of them were the result of choosing a lawyer who was a terrible fit. My business partner and I were elated. We set off to raise our money.

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Validate The Pedigree Of A Startup Before You Jump

Startup Professionals Musings

How complex is the capitalization table? These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

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8 Questions Before You Join Or Invest In A Startup

Startup Professionals Musings

How complex is the capitalization table? These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

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How to Raise Startup Funding from Unlikely Angel Investors

Up and Running

Capitalization Table and Shareholder Roster. Financial Model and Balance Sheet (even if there are zeros across the board). Management Resumes and Organizational Chart. Customer References. Personal References. Social Security Numbers (for background checks). Stock Option. How can you help him with his business or personal goals?

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

The bottom line: Startup CEOs/Founders need to do the projected capitalization table math on an as-converted, post-money basis from Day 1, before issuing any notes and modeling various possible future scenarios. It will be worth the time and effort.