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5 Ways to Make Your Startup a Choice Investment

Startup Professionals Musings

I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. They did not take salaries during the first two years and invested more money in the firm than they received from management fees. Executive session – a meeting without management to discuss performance and how to help.

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Lean Startups aren't Cheap Startups

Steve Blank

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Lean Startups aren’t Cheap Startups « Steve Blank (tags: startup product-management strategy) [.]

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6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

Cohen and John Kador, in their classic book “ What Every Angel Investor Wants You to Know ,” includes these great points of practical advice on this subject: Manage expectations before the fact. For entrepreneurs, friends and family money usually represents the smallest increment of funding, yet requires the most time to manage.

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The Damaging Psychology of Down Rounds

Both Sides of the Table

million and only manage to get $750,000. 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.

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Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

Cohen and John Kador, in their recent book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage.

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Don’t Hurt Friends and Family Investors Who Love You

Startup Professionals Musings

Cohen and John Kador, in their new book “ What Every Angel Investor Wants You to Know ,” includes these best points of practical advice I’ve seen recently on this subject: Manage expectations before the fact. For entrepreneurs, friends and family money usually represents the smallest increment of funding, yet claims the most time to manage.

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