Category Archives: Raising money

Don’t get hung up on early stage valuation.

Posted on January 28, 2021 by Dave Berkus

Here’s the “what.” I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even … Continue reading →

Posted in General, Ignition! Starting up, Raising money | 1 Comment

Raising money? Find your champion.

Posted on January 14, 2021 by Dave Berkus

Increasing your chances of success 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 … Continue reading →

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Financing with grants, not equity or debt

Posted on December 31, 2020 by Dave Berkus

First, an example of grant-based financing           I was chairman of a company that, for twelve years never took a dollar of outside investment.  The company was funded entirely by grants from the National Institute of Health, amounting to millions … Continue reading →

Posted in General, Raising money | 1 Comment

When should you go for equity financing?

Posted on December 17, 2020 by Dave Berkus

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding  must be rooted in technology to apply to this limited discussion. Friends and … Continue reading →

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Three Important Issues for Your Business Plan

Posted on December 10, 2020 by Dave Berkus

Some professional advice            Here’s more advice from professional investors for aspiring entrepreneurs.  Each of us has a list of things we look for early on when identifying whether we want to go to the next step in analyzing a … Continue reading →

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

Should you include your sweat equity in a business plan?

Posted on October 15, 2020 by Dave Berkus

Investors love it when entrepreneurs draw little or no money from their startups.  It extends the cash available for research and other necessary fixed costs and gives the fragile, young company more “runway” to get to breakeven. What are you … Continue reading →

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An economics lesson for growing companies

Posted on July 16, 2020 by Dave Berkus

Catching up from past insights Growing companies usually require more working capital during their periods of rapid growth.  In past insights we have calculated the amount of additional capital needed for a business as it grows, and the additional capital … Continue reading →

Posted in Depending upon others, Growth!, Protecting the business, Raising money | 1 Comment

Here’s how NOT to define your competition

Posted on April 11, 2019 by Dave Berkus

We investors see this all the time. An entrepreneur pitches using a deck with no slide for competition. When asked (as we always do,) the response is “This is new. We have no competition.” Niet!  No! Unh unh. Professional investors … Continue reading →

Posted in Finding your ideal niche, Ignition! Starting up, Positioning, Raising money | 1 Comment

What’s the minimum information to give your investors?

Posted on April 4, 2019 by Dave Berkus

Every investor wants regular information from companies taking their money.  And most of us investors are frustrated by the lack of regular communication – unless of course – the company needs more money. On the other side, entrepreneurs and CEO’s … Continue reading →

Posted in Depending upon others, Raising money | 2 Comments

Think ahead when raising your early investments

Posted on March 28, 2019 by Dave Berkus

Some businesses just can’t fit within the angel capital or friends and family model for raising funds.  Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of … Continue reading →

Posted in Raising money | 2 Comments