Category Archives: Raising money

Financing with grants, not equity or debt

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

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When should you go for equity financing?

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

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?

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

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

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?

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

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Think ahead when raising your early investments

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

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How much of my business do I have to give to an investor?

If you’re looking for growth capital, this one’s for you. We’ll cover what information you’ll expect to provide, your range of expected values and amounts of investment to expect.  All to help you set your expectations.  OK? Financial History and … Continue reading

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Could you have created a “dirty cap table?”

Oh, I know. When you started the business, you took investments from friends and family in small amounts just to get you started.  Of course, that worked at the time.  But… Enter the need for larger investments When you seek … Continue reading

Posted in Ignition! Starting up, Raising money | 3 Comments