Category Archives: Raising money
What are the costs of taking investor money?
Let’s talk about the reality of taking money from professional investors. It is not the first time we’ve covered this general subject nor the last. But this time, we concentrate upon governance changes. After friends and family… Once a company … Continue reading
A heartbreaking story about time and money.
First, think about your time as money! We’ll get to my heartbreak in a minute. But first… There is a relationship between timeand money that is more complex than most managers think. Fixed overhead for salaries, rent, equipment leases and … Continue reading
Take only “smart money” investments
This statement could be considered controversial. We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. Now we explore the other side of that coin. Professional investors usually bring “smart … Continue reading
Need investment capital?
Preparing for the game… If you have been following our recent insights, you’ll be up to speed knowing that professional investors negotiate tough terms, from provisions of control over asset acquisition, eventual sale of the company, future investments, forced co-sale … Continue reading
What do you give up when you take outside investors?
Setting your expectations Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first. From the moment such an investor looks seriously at your company, the investor or … Continue reading
Need money? Read this!
How important is this issue for your business? The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. Some businesses require very little capital and the … Continue reading
What’s the difference between your budget and forecast?
Hold it! These are confusing terms. When does a budget become obsolete? Do we rely upon constant changes and call it a forecast? So, let’s spend a few moments defining this sometimes-confusing set of terms. This is a budget: A … Continue reading
Is it YOU or your great plan?
So, what do you think is more important? There may be more choices here. But the most important ones for any size business, including start-ups, is: Do you believe it should be the quality of your management team, or the … Continue reading
What are the odds of your startup’s success?
Well, the numbers don’t lie, even if there are several sources of these statistics. Starting a company is HARD – in so many ways. And risky too. Let’s start with a restaurant -not our thing. But… I read several years … Continue reading
Finding a strategic partner, investor or buyer
Get organized. Finding your strategic partner, investor or business buyer is not something you do haphazardly. There are many steps to take, each closer to assuring a success. Research is paramount, and sources are everywhere, especially for public companies and … Continue reading