|
|
October 22nd, 2011 Everybody knows that when you raise money at a startup your ownership percentage of the company goes down. The goal is to have the value of the startup go up by enough that you own a smaller percentage of a much larger business and therefore your total personal value goes up.
The simplest way to think about this is: If you own 20% of a $2 million company your stake is worth $400,000. If you raise a new round of venture capital (say $2.5 million at a $7.5 million pre-money valuation, which is a $10 million post-money) you get diluted by 25% (2.5m / 10m). So you own 15% of the new comp
. . . → Read More: Understanding How Dilution Affects You At A Startup
October 3rd, 2011 Today, I’m talking with David Rose, who founded AngelSoft, now , in 2004. Gust provides a platform where angel investors and entrepreneurs can connect and discuss ventures. Originally created with angel investors’ needs in mind, Gust now has more than 750 investment organizations worldwide using its platform to manage deal flow and other day-to-day tasks. Over 125,000 startups have, through Gust, worked with more than 35,000 individual investors on their ventures. The company is based in New York City, has a development office in Vancouver, British Columbia, Canada, and a European office in Pa
. . . → Read More: Seed Capital From Angel Investors: David Rose, Founder and CEO of Gust / Angelsoft
October 3rd, 2011 Here is an example of a great entrepreneur knowing how to take his company to the next level, and increasing the value of his stock. Lesson: founders need to not let their egos get in the way of accelerating the company growth.
. . . → Read More: Comstock’s – Founders Keepers? When growing a startup requires a change in leadership
October 2nd, 2011 There’s certainly no shortage of successful young entrepreneurs in business today. We hear daily of fast growing startups from New York City to Silicon Valley, headed by CEOs such as Mark Zuckerberg, Andrew Mason and Tim O’Shaughnessy. These creative minds have demonstrated the power of youthful tenacity and innovation, combined with a sharp eye for business.
Yet, in 2010, entrepreneurs aged 35 to 54 were responsible for over 50 percent of total new entrepreneurship activity in the U.S, according to the . Individuals aged 55 to 64 also made their mark, representing 22.9 percent of new entrepreneurs in 2010, compared
. . . → Read More: Five lessons experienced entrepreneurs have learned
September 26th, 2011 I’ve started three companies, and now I’m an angel investor. So I’ve been on both sides of the table. There are lots of good articles out there about pitching, and surely everyone who pitches me has read some of them. Still, a few problems appear over and over again. If you’ve ever had to sort through resumes and cover letters, you’ve seen this effect: People tend to have the same misconceptions and therefore make the same mistakes.
. . . → Read More: 8 ways to get automatically rejected by an angel investor
September 26th, 2011 There are many items useful to entrepreneurs on the site including:
- Example cap (capitalization) table spreadsheet
- Term Sheet Creator
- Non-disclosure Agreements
- Employment Agreements
- Stock Option plans
- Confidential Information and Invention Assignment Agreement for Employees & Consultants
. . . → Read More: Orrick – Start-Up Tool Kit – Term Sheet Creator – Start-Up Forms Library
February 26th, 2010 It’s no surprise that most angel investors are successful entrepreneurs. You can see that in the list of names below —Jeff Bezos, Reid Hoffman, Marc A
. . . → Read More: The Top Angels in Tech – BusinessWeek
February 26th, 2010 Bloomberg BusinessWeek partnered with startup tracker YouNoodle to analyze the performance of U.S. angel investors. The result is our first annual ra
. . . → Read More: The Top Angel Investors: Behind the Rankings – BusinessWeek
February 26th, 2010 Angel investing has become an increasingly common way to fund a small business in the U.S., as start-up costs continue to drop across various industr
. . . → Read More: Angel Investing – Business Exchange
February 8th, 2010 Investor Presentation Guidelines (The 7P’s you can do it on a napkin!) Southwest Airlines business plan was conceived on a cocktail napkin. Compaq Co
. . . → Read More: Investor Presentation On A Napkin
|
|
