Both Sides of the Table

MAY 15, 2010

Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) Short answer: no.

Stealth 285

Stealth SEC Advertising Accredited Investor 285

Startup Professionals Musings

SEPTEMBER 22, 2011

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Your company has outgrown you.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

Startup Professionals Musings

DECEMBER 23, 2013

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Your company has outgrown you.

Bootstrapping 252

Bootstrapping Sweat Equity Entrepreneur Technical Review 252

Startup Professionals Musings

NOVEMBER 13, 2012

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Your company has outgrown you.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

Steve Blank

SEPTEMBER 1, 2011

Unlike small business entrepreneurs, their interest is not in earning a living but rather in creating equity in a company that eventually will become publicly traded or acquired, generating a multi-million-dollar payoff. Most grow through sustaining innovation , offering new products that are variants around their core products.

Government 335

Government Silicon Valley Startup Venture Capital 335

The Startup Magazine

SEPTEMBER 15, 2020

Venture capital is a type of private equity. It is a type of financing that investors can provide to startups and small businesses which are believed to have the potential for success in the long term. The downside to venture capital is that the company or individual doing investing generally get equity in the company.

Venture Capital 166

Venture Capital Technical Review Software Review Security 166

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. So angel and seed stage investors’ returns will be dependent on good times continuing or on the ability of their portfolio companies to get financed. VC will shrink.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Startup Professionals Musings

SEPTEMBER 23, 2013

The newest equity model was passed into law in early 2012 via the JOBS Act , and still has no scheduled date for availability in the USA, waiting for the rules to be defined by the SEC: Startup equity crowd funding. There is no concept of ROI other than product. Kickstarter is the big player in this space.

Intellectual Property 247

Intellectual Property SEC Venture Capital Equity 247

Startup Professionals Musings

APRIL 30, 2012

Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: Increase return on equity invested. Business strategy allows you to change customer perceptions and responses to your product or service offerings. Attract investors and financing. Great business model.

Intellectual Property 248

Intellectual Property Startup IP Finance 248

Startup Professionals Musings

AUGUST 25, 2012

The newest model was passed into law recently via the JOBS Act , and won’t even be available until the end of this year or maybe mid-2013 in the USA, while waiting for the rules to be finalized: Startup equity crowd funding. There is no concept of ROI other than product. This is not a get-rich-quick vehicle for consumers.

Intellectual Property 242

Intellectual Property Venture Capital Angel Investor Equity 242

Both Sides of the Table

JUNE 22, 2011

But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). Or worse yet they may never get financed. If you are interested the Vimeo is here. And so on down then line.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Steve Blank

APRIL 11, 2013

Examples are Hollywood for movies, Milan for fashion, New York for finance and today, Silicon Valley for technology entrepreneurship. The Torch program created Innovation Clusters by creating national Science and Technology Industrial Parks (STIPs), Software Parks, and Productivity Promotion Centers.

Programming 179

Programming Technical Review SBIR China 179

Both Sides of the Table

MAY 27, 2013

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. You may know how much to pay in cash or equity for your new VP Engineering. Growth like this, this early in a company’s lifecycle rarely happens.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Feld Thoughts

OCTOBER 7, 2013

This check is for The Community Foundation and for the Entrepreneurs Foundation of Colorado (EFCO) and results from a gift of 24,793 shares of common stock from Rally at the time of its first financing that represented approximately 1% of the equity of the company. I remember numerous conversations with Ryan about this.

Community 182

Community Colorado Common Stock Equity 182

View from Seed

SEPTEMBER 18, 2019

As a seed-stage company, it is understandable to have a nascent (or non-existent) product and a barebone team relative to the great ambition of the company. The “product roadmap”. The “product roadmap”. Zooming out of the first 18 months, you want to articulate how you see the product evolving to achieve its long-term vision.

Part-Time VPE 195

Part-Time VPE Seed Stage CTO Hire Forecast 195

Gust

DECEMBER 15, 2013

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Your company has outgrown you.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

YoungUpstarts

APRIL 16, 2020

If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. See if you and your finance staff can answer these questions: When did my business become unprofitable, and what caused the change? What are my gross profit and gross margin by product/service?

Recapitalization 200

Recapitalization Forecast Software Review Finance 200

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

VC Cafe

FEBRUARY 27, 2024

especially if the startup already has a product and revenue? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Seed is about showing initial product market fit. A founder asked me what makes a $2M round “pre-seed”?

Valuation 186

Valuation Software Review Generative AI Technical Review 186

YoungUpstarts

JULY 3, 2012

@hamlesh : As CEO of Peritus Group, Hamlesh Motah talks about tech, finance, motorbikes, and pulling up troubled businesses. jamescaan : James Caan is a serial entrepreneur and CEO of the Hamilton Bradshaw private equity firm. howardlindzon : Howard Lindzon, CEO and co-founder of Stocktwits.com tweets about trends in social finance.

Cofounder 239

Cofounder Technical Review Social Media PR 239

A Smart Bear: Startups and Marketing for Geeks

JANUARY 4, 2018

This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. We just announced a few more things. Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents.

Engineer 152

Engineer Revenue San Francisco Security 152

ReadWriteStart

JUNE 1, 2020

You must have a prototype or a minimum viable product (MVP). To fund the sudden spike in production, funds will be required for additional inventory and wages. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Sources of Funding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

The Startup Magazine

MARCH 8, 2024

Equipment Financing: Leveraging Assets for Growth Equipment financing allows businesses to purchase or lease equipment needed for expansion without tying up capital or resorting to large upfront payments. They offer flexibility for short-term expenses or help in unexpected opportunities.

Finance 147

Finance Technical Review Metrics .Net 147

YoungUpstarts

AUGUST 20, 2019

Finance companies increasingly recognize that their people are the most valuable resource and need to be managed more thoughtfully as well as efficiently. Finance companies now consider mobile oriented tech as part of the core work-flow. FinTech continues to utilize software which speeds up communication and productivity.

Technical Review 127

Technical Review Software Review Private Equity Cofounder 127

David Teten

APRIL 1, 2021

I’ve recently advised a number of emerging private equity and VC funds who are wrestling with the question: What are the highest impact steps they can take to support their portfolio companies? . Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies.

Private Equity 78

Private Equity Venture Capital Portfolio Equity 78

Startup Professionals Musings

JUNE 20, 2016

Even if your product is a technological marvel, I look for balanced strength on the team in finance, marketing and operations. Investors all know that the startup road is long and hard, so they look for people who have put and will continue to put “skin in the game” -- time, sweat equity, and money. Build your dream team early.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Startup 152

Both Sides of the Table

AUGUST 14, 2017

Boards are not appointed to be founder-friendly lapdogs for the 1–3 founders who start companies and usually own the largest equity positions in the company. ICOs certainly have a place in startup financing.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

The Startup Magazine

JANUARY 24, 2020

And you can use P&C insurance software products to make managing your insurance easier. Giving up too much investor equity. Financing your business is another obstacle you may face in the launch process. Luckily, tech startups have made it easier and cheaper for businesses to access these kinds of services.

Software Review 177

Software Review Startup Technical Review Hiring 177

The Startup Magazine

AUGUST 11, 2023

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

YoungUpstarts

AUGUST 6, 2012

Participants in the incubation program learn valuable lessons in entrepreneurial management, finding financing from incubator companies, modern office space, and fully permitted labs with a wide range of technical equipment and engineering resources. Current participants include Craftistas, CrowdRouser, and Flat Shoes Tattoos.

Incubator 202

Incubator New York City Boston Intellectual Property 202

David Teten

JANUARY 21, 2021

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020.

Equity 78

Equity Revenue Cofounder Colorado 78

YoungUpstarts

JUNE 7, 2018

One of the biggest challenges facing startup businesses is getting adequate financing – without hobbling future performance. It’s something the financial community – along with government resources, for that matter – needs to think about as it works to help young business leaders consider their financing options. Of course not.

Entrepreneur 124

Entrepreneur Incubator Finance Canada 124

Startup Professionals Musings

APRIL 22, 2023

Many entrepreneurs are convinced that banks are not worth the effort for startups, especially early-stage ones that still don’t have a revenue stream, or collateral to back up their financing needs. A winning product or service. Provide a simple yet complete description of your product or service and its competitive marketplace.

Equity 303

Equity Silicon Valley Finance Early Stage 303

VC Cafe

MARCH 1, 2024

Alow users to generate, refine, and stitch different content types in one workspace Enabling in-platform refinement – AI products can help users identify what can be improved, and then automatically make these changes. Iterating with intelligent editors – products that enable users to take an existing output and refine it (ex.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

YoungUpstarts

APRIL 22, 2014

To get these “numbers,” do a review of total revenue and expenses, review by product or service line, and a profit-margin analysis – all of which can all be obtained from your company’s income statement. Shark Question #4: How much equity and debt is there in your business?

CPA 160

CPA Technical Review Later Stage Equity 160

Both Sides of the Table

AUGUST 30, 2010

Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price). a priced/valued preferred stock financing)?&#. prefer equity to convertible debt): If you’re an early stage investor (e.g.

Equity 319

Equity Early Stage Angel Investor Valuation 319

ReadWriteStart

JANUARY 20, 2020

Unfortunately, however, our love affair with startups is unfounded, especially as it relates to those who may be looking to provide, market to or target their product/service to the startup segment. All while the majority of the economy is driven greatly by boring industries often owned by private equity, not venture capital.

Sweat Equity 107

Sweat Equity Non-Compete Startup Azure 107