Remove Cram Down Remove Entrepreneur Remove Startup
article thumbnail

5 Ways to Make Your Startup a Choice Investment

Startup Professionals Musings

How do you as an entrepreneur with a new idea get to be one of those choices? That means there are far more entrepreneurs looking for money than there are investors, and entrepreneur entitlement is not a realistic expectation. Angel investors look for prior domain and startup experience. Funding risk. Defensibility.

article thumbnail

Lean Startups aren't Cheap Startups

Steve Blank

For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. Over its lifetime a Lean Startup may spend less money than a traditional startup. Lets see why.

Lean 263
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. In the interim, there is no market for the shares, and no dividends or interest.

article thumbnail

Want to Know How First Round Capital was Started?

Both Sides of the Table

As a courtesy if you enjoyed his write-up please check out his startup company, ChannelStack. He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. The Exchange Fund – This allows the entrepreneurs to diversify their founders stock into other portfolio companies stock.

article thumbnail

The Damaging Psychology of Down Rounds

Both Sides of the Table

Many VCs would prefer to avoid having to cram down other VCs by investing at a lower price or even if it’s not a cram down they prefer not to invest in a down round that forces the VC to take a “write down” on their valuation sheets they should their LPs. Startup Advice'

article thumbnail

Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. In the interim, there is no market for the shares, and no dividends or interest.

Founder 254
article thumbnail

The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. In the interim, there is no market for the shares, and no dividends or interest.

Cram Down 148