Business Plan Blog

NOVEMBER 13, 2013

Raising Seed Capital. Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Convertible Debt Financing. Among the most common methods of funding used by startups when raising seed capital is “Convertible Debt Financing.”

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Gust

OCTOBER 17, 2011

When a company is at its earliest seed stage, the terms tend to be the least complex. As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them. Outline multiple tranches. Anti-dilution protection.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 158

Steve Blank

APRIL 12, 2013

The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. By 1991, 70% of the Torch funded startups were getting bank financing for expansion and later stages of the new ventures, with local governments acting as guarantors.

Venture Capital 171

Venture Capital China Offshore SBIR 171

Gust

OCTOBER 5, 2011

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. As with so many subjects in law and finance, mastering the jargon is half the battle. This may seem like a no-brainer now that you understand the basic structure of a convertible debt financing.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Growthink Blog

MAY 10, 2012

Seed Funding 3. Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Haystack

NOVEMBER 24, 2018

Typically in M&A, all-cash offers are more common when the acquirer dwarfs the target in terms of market cap; otherwise, M&A usually involves stock in the mix, which leads us to believe Cylance wouldn’t have accepted anything but cash — which makes sense given the company was reportedly booking $130M/year with 3,500 customers.

Acquisition 62

Acquisition Artificial Inteligence Balance Sheet Cofounder 62

Scott Edward Walker

SEPTEMBER 21, 2011

If you’re an entrepreneur looking for seed capital, but don’t know any sophisticated angel investors, you need to hustle and build relationships in order to get “warm” introductions. Finally, unless the startup is raising at least approximately $750,000, it generally is not in the company’s interest to issue shares of preferred stock.

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

maplebutter.com

JANUARY 8, 2013

Other sources of capital. If you believe in it – then finance whatever you can yourself. for most seed investments, investors will put more stock in the person and the traction they get with the resources at hand. We are raising seed capital, but would like to have a US tech investor.

Technical Review 44

Technical Review Startup Cofounder Software Review 44