A frequent topic: “What is my burn rate?” Investors frequently talk about potential target companies in terms of their burn rate. When funding start-up companies, investors try to determine the potential target’s burn rate. Burn rate is the rate at which a company will…
So, you found an investor that is willing to hear what your company can do and how it will make everyone rich beyond their wildest dreams. Let’s talk about actually structuring and negotiating the deal. The fun really is just starting. Now comes the…
So, the investor has just dragged you through the due diligence knothole. What about the veracity of the investment team? When a company needs our investors, we want them to be ready. You might say, “For what?” Do your homework on them just as…
We’ve been talking about entrepreneurs so far and what their needs and realities are, and what I’d like to do is talk a little bit about the other side: investors and what their perception is, particularly when it relates to management teams. How important…
As a business founder presenting your opportunity to potential investors, there are a few key things you should communicate to make your pitch effective. Here are some examples: Clearly define your business Start by providing a clear and concise explanation of your business, including…
As a business founder seeking capital funding, there are certain things that you should avoid telling investors. Here are some examples: Exaggerating financial projections It’s important to be realistic about your financial projections and not to exaggerate them in an attempt to impress investors….
A common question is, “What type of capital structure is best for my company?” The answer to that question is individually dependent upon your company, its stage of development and its needs. In the broadest sense there are two types of financing, debt financing…
Having sat on both sides of the desk as an investor over the past 20 years and as a capital seeker as well, I could tell you, there is some eye catchers that are going to pop out at you and really grab your…
Here are the 6 things companies need to do in this altered financing environment to survive and raise angel funding: 1. Bootstrap Companies must pinch every dollar, when possible. Get individual contributors to work for free, pay upon performance and do everything you can…
We have the opportunity to meet a lot of entrepreneurs at different funding stages in their life cycle. One thing that I’ve found is that it is important that you communicate to investors which stage you’re in and, if possible, how many rounds of…