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
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 […]
7 Pitfalls to Watch Out for When Funding Your Small Business
Remember that you’re going to make mistakes while running your business. It’s okay to make a few mistakes. But most financial mistakes are the results of lack of financial knowledge or poor planning. Here are the most common pitfalls to avoid when securing funding for your small business. Choosing the Wrong Business Partner Not choosing […]
Take Advantage of the Good Times to Build Stakeholder Loyalty
Loyalty is a hard-earned commodity. There are several times when stakeholder loyalty is tested to the limit. For employees, a late or missed payroll is the ultimate test of corporate loyalty, divorced even from an employee’s ability to make do without a paycheck. For investors, a subsequent down round at a lower valuation than the […]
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 […]
The 3 Phases of a Tech Startup
Most tech startups go through three phases: 3Fs, Seed and VC/Scale. Understanding these stages, and the objectives for each, is an important factor in strategy development and decision making. Not understanding the stage you’re currently in is one of the most common reason tech startups fail to move forward, or worse, fail. The Three Phases: […]
6 Common Misconceptions About Angel Investors
The question on Quora was “What do investors ‘get’ that other people don’t?” I answered that question from the point of view of angel investors, specifically … not just investors. 1. Some of the healthiest businesses are not good investments Many people think that a good business makes a good investment. The truth is not […]
5 Steps to Due Diligence on Your Potential Investors
Even though the color of their money is always green, all startup investors are not the same. Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Taking on equity investors to fund your company is much like getting married—it is a long-term […]
3 Key Components of Successfully Raising Funding
Not all companies should raise (or need) venture capital to succeed. As scholar and former VC Dileep Rao points out, “The reality is that most ventures do not qualify for venture capital and never will.” However, a highly scalable business shouldn’t necessarily avoid seeking capital. In fact, many successful companies have grown to fruition because of it. Ultimately, your company’s […]
4 Ways of Successfully Scaling Your Global Startup
There are over 214 global startups that claim to have attained the coveted “unicorn” status—meaning they’ve reached a billion-dollar valuation. Becoming a unicorn may not be the end goal of all entrepreneurs, as some may have a moon-shot in mind and some may be in the game merely to solve a problem. Regardless, having the […]
