Startup Professionals Musings

JUNE 11, 2022

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Individual and institutional philanthropy.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

Startup Professionals Musings

MAY 25, 2020

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

OCTOBER 19, 2022

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors was legalized via the SEC way back in 2016, and its impact is still not fully understood. Startup equity model. In Europe, other investors can buy equity, with platforms such as Seedrs. In the U.S.,

Accredited Investor 352

Accredited Investor Startup SEC Equity 352

Startup Professionals Musings

APRIL 4, 2022

The most effective new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. The positives are that you give up no equity, and these apply to the early startup stages, but they do take time and much effort to win. Use crowd funding.

Intellectual Property 261

Intellectual Property Technical Review Incubator Bootstrapping 261

Startup Professionals Musings

FEBRUARY 8, 2021

In fact, the cost may be minimal, if you do your networking and build a relationship with an experienced business executive or two in your domain who are willing to share and give back for a nominal retainer, perhaps one percent of your new startup equity. The cost of a co-founder is usually fifty percent of your equity.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

JANUARY 20, 2020

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors was only legalized via the SEC in 2016, so its impact is still in the early stages. Startup equity model. In Europe, other investors can buy equity, with platforms such as Seedrs. In the U.S.,

Accredited Investor 324

Accredited Investor Entrepreneur SEC Equity 324

Both Sides of the Table

DECEMBER 11, 2022

If they are private we still have fig leaves that cover us because some rounds might raise debt vs. equity or might fund with terms like multiple liquidation preferences or full-ratchets or convertible notes with caps. So now our collective companies are worth less. If we took them public we are naked now. The tide has gone out.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Startup Professionals Musings

AUGUST 19, 2020

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

JUNE 2, 2021

That means that many companies are now forgoing the rush to go public (IPO), in favor of major equity investments from specialized venture capital funds, such as Japan’s SoftBank. Look for investors and organizations who practice 10x or 100x thinking, rather than earnings-per-share (EPS) every quarter.

Software Review 355

Software Review Algorithm Global IPO 355

Startup Professionals Musings

FEBRUARY 10, 2023

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Investor agreements should always be reviewed by an attorney who is familiar with startup equity investment deals. Personal funds imply the most commitment, and offshore funding is most suspect.

Technical Review 345

Technical Review Due Diligence Term Sheet Offshore 345

Startup Professionals Musings

FEBRUARY 27, 2021

By way of a definition, a business or startup incubator is a company, university, or other organization which provides resources to nurture young companies, usually for a share of the equity, hoping to capitalize on their success, or at least strengthen the local economy. Initial funding. Expert mentoring and training.

Incubator 366

Incubator Technical Review Due Diligence Venture Capital 366

Startup Professionals Musings

OCTOBER 16, 2022

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions. Member of the Advisory Board.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

JANUARY 24, 2021

Startup equity investments imply a long-term business relationship, lasting an average of five years. If more marriages were subjected to the same rigor, the divorce rate would likely not be in the current fifty percent range.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

Startup Professionals Musings

MAY 14, 2023

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

NOVEMBER 25, 2020

Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules. In equity crowdfunding, no investor is representing their own interest. These groups are now largely run by volunteers at no cost to entrepreneurs.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Startup Professionals Musings

FEBRUARY 25, 2023

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

MAY 11, 2020

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Investor agreements should always be reviewed by an attorney who is familiar with startup equity investment deals. Personal funds imply the most commitment, and offshore funding is most suspect.

Technical Review 310

Technical Review Due Diligence Term Sheet Offshore 310

Startup Professionals Musings

MAY 22, 2020

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

View from Seed

APRIL 6, 2021

We are firm believers that diverse points of view strengthen the collective intellectual equity and long-term performance, and we truly welcome people with a broad set of backgrounds and perspectives to apply. Check out our blog for how we think about company building and investing. A Final Note. How To Apply .

Technical Review 317

Technical Review Software Review Seed Stage Cofounder 317

Startup Professionals Musings

NOVEMBER 4, 2022

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. It just means that the cofounders trust one of their own and are willing to follow. The industry veteran.

Technical Cofounder 309

Technical Cofounder Cofounder Advisory Board Startup 309

Startup Professionals Musings

FEBRUARY 9, 2020

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. It just means that the cofounders trust one of their own and are willing to follow. The industry veteran.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

JANUARY 18, 2020

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions. Member of the Advisory Board.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

YoungUpstarts

JANUARY 10, 2020

Zain Jaffer is a serial entrepreneur and the Founder and CEO of Zain Ventures , an investment firm that invests globally in start-ups, real estate, stocks, fixed income, hedge funds, and private equity. Vungle’s remarkable success attracted The Blackstone Group, which acquired the business in 2019 for a lofty $780 million. .

Customer 347

Customer Development Team Review Advisory Board Private Equity 347

Startup Professionals Musings

OCTOBER 6, 2023

Startup equity investments imply a long-term business relationship, lasting an average of five years. If more marriages were subjected to the same rigor, the divorce rate would likely not be in the current fifty percent range.

Technical Review 296

Technical Review Due Diligence Term Sheet Bankruptcy 296

View from Seed

JULY 6, 2020

We are firm believers that diverse points of view strengthen the collective intellectual equity and long-term performance, and we truly welcome people with a broad set of backgrounds and perspectives to apply. . Check out our blog for how we think about company building and investing. . A Final Note. How To Apply .

Technical Review 257

Technical Review Software Review Hiring Seed Stage 257

Startup Professionals Musings

FEBRUARY 15, 2023

With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Use your equity for key executives and business partners. Bootstrapping doesn’t mean that you don’t share equity.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

YoungUpstarts

SEPTEMBER 3, 2020

Investment banks simply help governments or businesses to raise capital through equity and debt financing. Thought the day you can expect to work with a lot of other professionals, from sales staff to equity research. What is the role of an investment banker? There are a lot of misconceptions regarding investment banking.

Investment Bankers 236

Investment Bankers Technical Review Equity Portfolio 236

Startup Professionals Musings

APRIL 22, 2023

The first thing to remember is that banks only do loans – they generally don’t do equity investments like angels and venture capitalists (and vice versa). Bankers do not contribute equity. A question I get from time to time is “Can I ever expect any backing from my bank for a great opportunity?” Money from other sources.

Equity 303

Equity Silicon Valley Finance Early Stage 303

Startup Professionals Musings

FEBRUARY 29, 2020

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. Some of the specific challenges that always come with other people’s money include the following: You will stay awake nights worrying about how to pay it back.

Bootstrapping 310

Bootstrapping Advisory Board Startup Venture Capital 310

Steve Blank

OCTOBER 23, 2023

Advisory Board members are often paid in a balance of equity (stock options) and cash (“cash” is the industry term for money wired to your bank account). If they won’t discuss any aspects of runway or value of the equity package they’re offering, look elsewhere. A Board of Directors has a formal and legal role. Look before you leap.

Government 241

Government Advisory Board Salary Sales Cycle 241

Startup Professionals Musings

MAY 25, 2022

You need to do the due diligence to make that decision before you sign away your equity. In every case, a partner can be an asset, bringing new skills and perspectives to the business; or a burden, making every decision more difficult, and taxing your lifestyle satisfaction.

Technical Review 313

Technical Review Due Diligence Partner Cofounder 313

View from Seed

JANUARY 27, 2021

We are firm believers that diverse points of view strengthen the collective intellectual equity and long-term performance, and we truly welcome people with a broad set of backgrounds and perspectives to apply. . Check out our blog for how we think about company building and investing. . A Final Note. How To Apply .

Operations 227

Operations Hiring Seed Stage Boston 227

YoungUpstarts

DECEMBER 10, 2020

Robertson notes that over $50B has been spent by private equity on tech deals in 2020. There is going to be a whole new generation of fortunes made in the next three to five years. These are small businesses, companies that are nimble and can shift easily. Investment in tech is trending.

Technical Review 279

Technical Review Private Equity Equity Employee 279

YoungUpstarts

NOVEMBER 9, 2021

Sizing an equity pool correctly is a delicate balancing act – and one that founders often get wrong without realizing it. The post New Ideas On Structuring Equity Incentives appeared first on Young Upstarts.

Equity 239

Equity Founder Finance Management 239

VC Cafe

FEBRUARY 27, 2024

In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. There are of course anomalies, like French AI startup Mistral which raised a “seed” round of $113M in June last year.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

The Startup Magazine

JUNE 26, 2023

“When we started our company, we had an equity partner that was going to be our money. The equity partner] ended up going bankrupt. “We We went and just talked to anybody we could about getting equity for ground-up real estate projects, but it was the middle of the great financial crisis.

Cofounder 148

Cofounder Developer United States Founder 148

Startup Professionals Musings

NOVEMBER 26, 2022

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. Some of the specific challenges that always come with other people’s money include the following: You will stay awake nights worrying about how to pay it back.

Cost 267

Cost Bootstrapping Advisory Board Startup 267