Category Archives: Raising money

Where is the best source of early stage investment?

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 when others attempt to … Continue reading

Posted in General, Raising money | 7 Comments

What do you give up when taking outside investors?

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 VC partner is … Continue reading

Posted in Depending upon others, Raising money | 1 Comment

Does your business need money? Read this!

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 founder can self-finance the enterprise and retain 100% … Continue reading

Posted in Growth!, Raising money | 1 Comment

You name the price; I’ll name the terms.

I admit that my dad taught me this when I was just a fifteen–year old kid starting a business and negotiating with suppliers for the first time.  But I learned it again and again in my various business lives. The … Continue reading

Posted in Growth!, Raising money | 1 Comment

After 20 years: Updating the Berkus Method of valuation

Well, it had to happen.  Originally created in the mid 1990’s to help with the imprecise problem of how to value early stage companies, especially those in technology, I developed what soon became known as “The Berkus Method” when published … Continue reading

Posted in Ignition! Starting up, Raising money | 4 Comments

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

Posted in Raising money, Surrounding yourself with talent | 3 Comments

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