Category Archives: Raising money

Raise money on good news

The first rule for raising money is to do it on good news – right when sales are increasing at an increasing rate.  Or when a major customer signs a significant deal.  Or when something happens that makes an investor … Continue reading

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The best advice startups will never follow

Let me tell you a few short hair-raising stories of entrepreneurs who have raised money and regretted it later.  Here are some rules that entrepreneurs almost always ignore to their future peril. Don’t take money from relatives who can’t afford … Continue reading

Posted in Ignition! Starting up, Raising money | 5 Comments

Stay in touch with your investors.

Investors as a group have a common gripe – almost universal.  Information flows from the company irregularly, in fact most often when the company is urgently in need of more money. Investment documents usually call for quarterly reporting by the … Continue reading

Posted in Raising money, Surrounding yourself with talent | 4 Comments

Don’t be defensive, but defend.

When meeting with investors, during the period devoted to feedback after your presentation, you will hear comments and recommendations that don’t resonate with you. Some will be from a misunderstanding of your explanation. Some listeners will challenge your assumptions. Some … Continue reading

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Don’t get hung up on valuation.

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable … Continue reading

Posted in Ignition! Starting up, Raising money | 2 Comments

Turn the tables: What’s an angel look like?

Angel investors, particularly those in organized angel groups, are typically former entrepreneurs who have had successful liquidity events in their pasts, or executives of companies who’ve retired with the funds from their stock options.  Occasionally, an angel is a member … Continue reading

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Find your champion.

If you seek funds from an organized investment group such as an angel fund, venture capital entity, or even an investment club, the first thing you want to do is to find one person to buy into your vision, become … Continue reading

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The Rule of Thirds

It is rare when one person starts a company, supplies all the funding, and shares no management tasks or equity with others, and still grows the company to any significant size, worthy of a multi-million dollar opportunity to cash out … Continue reading

Posted in Ignition! Starting up, Raising money, Surrounding yourself with talent | 1 Comment

Huge opportunities do NOT command amazing pre-money valuations.

Dave’s note: Popular Bill Payne returns this week with a thoughtful take on valuations. By Bill Payne One entrepreneur has a company which appears to be scalable to a $30 million exit value in five to eight years, and a … Continue reading

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Early stage money: The problem with PPMs

By Bill Payne Bill Payne has been actively involved in angel investing since 1980, funding over 50 companies and mentoring over 100 more. He is the recipient of the coveted “Hans Severiens Award form the Angel Capital Association, its highest … Continue reading

Posted in Raising money | 6 Comments