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« “Space Angels 2.0” Gravitate Toward an Online Deal Source Launched by Space Angels Network | Market Wire | Find Articles at BNET
Finding angel investors. . . : Texas Startup Blog »

How to Fund a Startup

17 Sep 2008   | Family and Friends · Funding Sources Overview · Selling Stock -- SEC Rules

Tags: financing food chain

LINK TO ORIGINAL ARTICLE:
  • http://www.paulgraham.com/startupfunding.html

Venture funding works like gears. A typical startup goes through several rounds of funding, and at each round you want to take just enough money to reach the speed where you can shift into the next gear.

Few startups get it quite right. Many are underfunded. A few are overfunded, which is like trying to start driving in third gear.

I think it would help founders to understand funding better — not just the mechanics of it, but what investors are thinking. I was surprised recently when I realized that all the worst problems we faced in our startup were due not to competitors, but investors. Dealing with competitors was easy by comparison.

>>> READ MORE at:
  • http://www.paulgraham.com/startupfunding.html
« “Space Angels 2.0” Gravitate Toward an Online Deal Source Launched by Space Angels Network | Market Wire | Find Articles at BNET
Finding angel investors. . . : Texas Startup Blog »

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