Category Archives: Raising money

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

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

Posted on March 21, 2019 by Dave Berkus

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 →

Posted in Raising money | 3 Comments

Could you have created a “dirty cap table?”

Posted on March 7, 2019 by Dave Berkus

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

Would you sign a personal guarantee if you have investors?

Posted on February 28, 2019 by Dave Berkus

It’s a fact of life that a banker, lender or lessor will ask for a personal guarantee from the founder or entrepreneur most every time. But what if you’ve diluted your interest from 100% to something less than 50%? Should … Continue reading →

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

Oh, go ahead and ask for a five-million-dollar investment in your startup.

Posted on February 21, 2019 by Dave Berkus

I cannot tell you how many times I have seen executive summaries of business plans in which the entrepreneur seeks $5,000,000 to build the business. Four reasons you should reconsider. First, few startups can use that much money today with … Continue reading →

Posted in Ignition! Starting up, Raising money | 7 Comments

Should I license my IP, sell a royalty stream, or just produce products?

Posted on December 20, 2018 by Dave Berkus

This week we contacted royalty licensing expert, the well-respected Arthur Lipper, asking the magic question.  Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? I asked him five … Continue reading →

Posted in Raising money | 7 Comments

Take only “smart money” investments

Posted on February 8, 2018 by Dave Berkus

[wdm_image_effects effect=”no_effect” animation=”zoomIn” shape=”no_shape” color=”#000″ social=”” title=”Smart-Mone” description=”Smart-Money” id=”3294″ show=”hover” counter=”0″ size=”thumbnail”/] 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 … Continue reading →

Posted in Raising money, Surrounding yourself with talent | Leave a comment