-
Search this blog
Archives
-
Recent Posts
Categories
Category Archives: Raising money
Update your banker in good times and bad.
You’ve heard the old one – that a banker always seems willing to offer a loan when you don’t need it. For small businesses, there is such truth in that statement that you can trust the story to be based … Continue reading
The “Hold Your Nose” theory of legal documentation
Investors sometimes join into investment rounds that have been pre-negotiated by others, receiving the paperwork already created by attorneys from that negotiation. It is not uncommon for a sharp investor to discover a “stinky” clause or two in such agreements … Continue reading
Posted in Protecting the business, Raising money
7 Comments
The last money has the first say.
This important variation on “money talks” is an important consideration for entrepreneurs when seeking an investment from professionals such as VC’s. Something like a marriage (and often lasting just as long statistically), your investment partner can be a great cheerleader, … Continue reading
Posted in Growth!, Raising money
Leave a comment
How much information do you give to investors?
There is a natural fear of giving too much information to investors after the initial investment is received. CEO’s worry that investors will not keep the information confidential and that financial data will find its way into competitors’ hands. Others … Continue reading
Posted in Protecting the business, Raising money
2 Comments
Think ahead, if you will need more money later.
Some businesses just can’t fit within the angel capital or friends and family model for raising funds. Sooner or later these businesses will have to seek venture capital and accommodate the needs of the venture community in negotiating the terms … Continue reading
Posted in Protecting the business, Raising money
Leave a comment
Entrepreneurs: The Funding Landscape Has Changed.
Guest post by Sara Mackey Dave’s Note: This is the first time we’ve had a guest author on the BERKONOMICS site. Sara focuses upon another side of small business financing not typically considered in the angel and venture world, financing from … Continue reading
Posted in Raising money
3 Comments
The Berkus Method: Valuing an Early Stage Investment.
The Berkus Method was updated in November, 2016, and is available here… For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of … Continue reading
Posted in Ignition! Starting up, Raising money
17 Comments
Beware the “dirty cap table.”
When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Investors love to see entrepreneurs who have used their own money to … Continue reading
Posted in Growth!, Raising money
6 Comments
Consider all resources before seeking investment.
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. First, few startups can use that much money today with all of the virtual services … Continue reading
Posted in Ignition! Starting up, Raising money
3 Comments
Is it the jockey or the horse?
Early stage investors have been arguing over this for years. Do they bet on the entrepreneur (jockey) or the business idea and plan (the horse)? This is serious stuff. If you are looking for money, this question will certainly … Continue reading
Posted in Raising money
3 Comments
