Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Denver Pre-Money Valuation 137

David Teten

MAY 7, 2019

Do you have a great team at your seed startup, but your product just isn’t working? Do you wish there was a product to help companies “Get things done” by leveraging your own employees, your employees’ networks, and more broadly other influencers around you? You must have a strong product management pedigree.

America 60

America Technical Review Advisory Board Due Diligence 60

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. Pre-Seed Funding 2. Seed Funding 3. The five main stages include the following: 1. Series C, D, etc.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Convertible equity? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” Convertible debt? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

Finance 134

Finance Convertible Security Equity Seed Stage 134

Feld Thoughts

AUGUST 12, 2011

When we were last with Dick and Jane on Finance Fridays, our fearless entrepreneurs were figuring out how to split up their founders equity and account for an investment from Jane. While they’ve been hard at work on their product, they’ve also incorporated the company, now named SayAhh (thanks Mac!)

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Seeing Both Sides

AUGUST 28, 2017

A company that can successfully raise money in an ICO may never need venture capital again. Most of those companies will still require seed capital to assemble their team and fund a year or two of initial development and experiments. Shift of value from equity holders to token holders. But many are.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

A company that can successfully raise money in an ICO may never need venture capital again. Most of those companies will still require seed capital to assemble their team and fund a year or two of initial development and experiments. Shift of value from equity holders to token holders. But many are.

Early Stage 20

Early Stage Equity Venture Capital Government 20

View from Seed

OCTOBER 22, 2015

One of the best and most positive movements proliferating around the tech community is what Product Hunt founder and CEO Ryan Hoover calls “building in public.” We’ll need your contributions and your knowledge around categories like Product & Design , Marketing & Growth , Hiring & Talent , Fundraising , and more.

Seed Stage 120

Seed Stage Seed Capital Syndicate Syndication 120

The Startup Magazine

MAY 7, 2024

While you get funding for your project, backers in return receive rewards or equity depending on the type of crowdfunding. Lastly, note that using free crowdfunding sites provides an excellent cost-effective solution compared to seed capital or personal loans with high-interest rates.

Campaign 148

Campaign Seed Capital Social Network Global 148

YoungUpstarts

APRIL 12, 2016

Most businesses – online or offline, need seed capital to get established and without access to these funds, launching a business can seem like an improbable dream. In the early stages of business, sweat equity can often be a good substitute for cash. What stops a majority from moving ahead to the execution stage is funding.

Cofounder 100

Cofounder Sweat Equity Startup Seed Capital 100

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The company spends the $1m building and launching their first product.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

ReadWriteStart

JUNE 1, 2021

Were you to ask any entrepreneur what their most pressing concern was regarding their product or idea, they would most likely unhesitantly reply “money” — or, rather, the complete lack thereof. The fact is, securing capital for a startup is one of the most difficult parts of starting a business. Small Business Grants.

Security 92

Security Finance Angel Investor Incubator 92

Business Plan Blog

DECEMBER 10, 2013

The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. Product Development. In your pitch to FFF investors you told them that there was a need for your product in the market.

Angel Investor 55

Angel Investor Intellectual Property Seed Capital Advisory Board 55

Business Plan Blog

NOVEMBER 22, 2013

A major piece of the business plan will be your capitalization strategy demonstrating the milestone timeline discussed above as well as the effects of accomplished milestones on the company’s future valuation. A fair amount of your FFF funding will likely go towards product development. Founding Team, Key Hires, Advisory Board.

Intellectual Property 55

Intellectual Property Advisory Board Startup Seed Capital 55

Business Plan Blog

NOVEMBER 6, 2012

Survival or Establishment Stage: Once initial seed capital is drying up and no profit has yet been earned, the challenge for a social enterprise will be to expand the customer base and increase the market penetration while preserving capital. At this point in financing, debt capital is likely to be preferred.

Subordinated Debt 45

Subordinated Debt Seed Capital Equity Finance 45

Hearpreneur

OCTOBER 20, 2019

It could be more revenue, hiring clients or launching a new product or service, where setting goals presents a fresh opportunity to achieve different objectives. I want to help the best brands around the world find their voice so that their target audience can find them quickly when in need of their products or services.

Papua New Guinea 89

Papua New Guinea Hawaii Churn Rate Advisory Board 89

Austin Startup

APRIL 28, 2019

I put that in quotations, because, as I’ll expound, there is a start-up industrial complex that is designed to fleece novice founders from their seed capital with predatory fees, terms, etc. Some accelerators take equity in exchange for providing services like desk space, credit on cloud services, or “free” consulting.

Incubator 50

Incubator Equity Programming Cloud 50

www.thestartup.eu

OCTOBER 23, 2010

Posted by Stefano Bernardi On June - 21 - 2010 It’s a known fact that seed capital is very scarce in Italy. Sweat Equity: Juliette and Marco put in a bit of work during weekends as project managers, designers, developers, sysadmins, etc. TheStartup.eu Meet Tipsandtrip. CEO Marco Magnocavallo. MyGengo.com and Tolingo.de.

Bootstrapping 49

Bootstrapping Italy Sweat Equity Europe 49

The Next Web

OCTOBER 3, 2012

I have heard many founders — even in the first few months of product development — expect to raise seed rounds, pay themselves salaries, etc. Your first three years you will get the startup off the ground, establish your core team culture, and fully validate your main product/market through rapid iteration.

Cofounder 155

Cofounder Technical Cofounder Technical Review Software Review 155

Both Sides of the Table

FEBRUARY 23, 2010

You’ve got the perfect product. There are these great big companies that have large sales departments looking to supplement their existing products so when they’re with clients they can increase their average order size. Sort of amortizing the costs of their sales reps over more products. A Channel Love Story.

Channel 293

Channel Startup Sales Partner 293

maplebutter.com

JANUARY 8, 2013

Building Product 2. Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. Would it be a good idea clubbing all the other products / services under 1 venture, because some of them are totally unrelated. I just didn’t stop.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Scalable Startup

AUGUST 9, 2018

Raising seed capital is a tricky business. Most are making major mistakes in their approach when seeking capital. When launching your company there are 2 times to raise your outside seed funding, and one time window to avoid. when you are just starting, probably no product or service yet. Option Two: Post-Launch?—?Raise

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

techcrunch.com

FEBRUARY 19, 2010

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Not a big shock, but things don’t look pretty, especially in the venture capital world. A lot of the stats weren’t surprising. The overwhelming success of Opensource is a game changer. Translation?

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62