The 411 On Startups (tm)

Angel Worst Practices — 10 Ways to Ensure You Lose Money – Forbes

May

2015

. . . . . . here’s my list of the worst angel investing practices, with a tip of the hat to John Huston and the Ohio Tech Angels, who have used this teaching method for many years. Avoid these 10 mistakes or your angel investments could be losers right out of the gate: Put ...

2014 Pre-Money Valuation of Seed Stage Angel Deals

May

2015

The median pre-money valuation of seed stage deals has increased since 2010, as the US economy has emerged from the recent recession. The following table shows the pre-money valuation of seed stage deals from several sources over the past five years: Payne’s survey data was provided by 30 angel groups from all regions of the ...

The Ultimate Pitch Deck to Raise Money for Startups

May

2014

The Ultimate Pitch Deck to Raise Money for Startups Great startups don’t fund themselves. Raising money from investors for your startup is challenging at any stage and requires a great pitch, even for experienced founders with significant traction in their company. The good news is that there’s a formula for pitching your startup that has ...

Crowd Funding Has Not Killed Angel Investing Yet

May

2014

Crowd Funding Has Not Killed Angel Investing Yet Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). New crowd funding platforms on the Internet, like and , as well as the ...

Investors Weigh In With Convertible Note Caveats for Start-Ups – Venture Capital Dispatch – WSJ

May

2013

Tech entrepreneurs take note: Convertible notes are not free money and, if not structured properly, can prevent you from raising additional financing. Investors speaking at the TechCrunch in San Francisco this week had this gem and a few other choice observations about early-stage financing for start-ups. “We’ve had companies come in for their Series A ...

Discount or cap? A spreadsheet that shows what happens when a note converts.

May

2013

Venture math can be tough. Terms like convertible note, discount and cap can complicate a seemingly easy process. A convertible note is a debt instrument typically used when a company first begins to raise capital. The valuation of the company is determined at a later date, after a Series A investment. This is when a note converts to ...

Victoria Silchenko: Equity Crowdfunding: Next Generation of Angel Investors Is Not Sorry to Disrupt

May

2013

Nikola Tesla wrote once, “The present is theirs; the future, for which I really worked, is mine.” I can see this being quoted by any supporter of equity based crowdfunding (or crowdinvesting) — an innovative online tool that would give you a legitimate right to own a stake in a company you choose to invest ...

2012 Startup Accelerator Report presented by .CO – Tech Cocktail

May

2013

A Guide to Choosing the Best Accelerator for Your Tech Startup is a 20-page startup accelerator report that outlines five key factors for startups to consider when choosing an accelerator. Accelerators offer entrepreneurs a chance to spend several months intensely focused on their product and business – fueled by funding and mentorship, and often in ...

STARTGRID – MEET. WORK. GROW.

May

2013

Startgrid connects entrepreneurs to resources, relationships and community – everything needed to build great companies. It’s where the whole entrepreneurial economy comes together. You’ve got passion, a big idea and a clear vision. You’re working hard to build a great business. Is that enough? The difference between success and failure often comes down to having ...

Stock Options versus Stock Warrants – What’s the Difference?

May

2013

I frequently hear clients and some of their advisers talk about “stock options” and “stock warrants” and there is often considerable confusion between the two. In this post, I’ll briefly describe the major distinctions between these instruments and how each can be used in a privately held company. Stock options are issued to key employees, ...