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 usually have a natural fear of giving too much information to us investors after the initial investment is […]
Working with Investors
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 Projections Let’s start with the basics. If you are a growing business with a track […]
Everything You Wanted to Know About Penny Stock Trading But Were Afraid to Ask
Institutional investors like banks, hedge funds, and mutual funds generally avoid investing in penny stocks. This is mainly because very little information about penny stocks is available and the little that is is hard to trust. The Penny stock market is dominated by scammers luring potential investors with misinformation and hype. This, however, does not […]
10 Good Reasons Not to Seek Investors for Your Startup
Before you buy into the myths about startup investors, first consider whether you actually want startup investors for your new business at all. No, I’m not bitter … I had VC money in Palo Alto Software for a few years and they were helpful, collaborative, and good people. I’m not a bitter victim. And I’ve […]
3 Things You Need to Know About CD Investing
A certificate of deposit (CD) is a federally insured savings account that has a fixed interest rate. Typically interest rates on CD accounts are higher than a savings account, which means you’ll make more money. What’s different about a CD is that there’s a fixed date in which you can withdrawal the funds, also known […]
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 professional investors, whether organized angels or venture capitalists, one of the early questions you are asked […]
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 come up in one form or another when you approach professional or organized angel or VC […]
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 come up in one form or another when you approach professional or organized angel or VC […]
Investors, Your Board, and You: Who Controls Strategy?
You’re building a company from your vision and a passion, and lots of people are going to tell you that you have this or that wrong, and that it just won’t work. Business plans rarely survive market contact The truth is that very, very few early business plans survive in a form completely recognizable when looking […]
6 Guidelines for Proper Responses to Investor Queries
Entrepreneurs looking for investor funding often fail to realize that all money comes with strings. For example, if you have watched the Shark Tank TV series, you probably noticed that the Sharks always ask the entrepreneurs for their intended “use of funds.” Those who respond with one of the wrong answers, such as “I want […]
