Thoughts on startups by investors that
fund them & entrepreneurs that run them

Raising Capital As A First Time Founder

A year ago, in mid September 2014, I walked out of a Starbucks in San Francisco with the very first check from an angel investor for Glassbreakers. Though it was only $5,000, it was enough to prove to myself and my co-founder, Lauren Mosenthal, that we could actually fundraise for our startup. We already had 1,000 women signed

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18 Ways to Make Your Financial Model Stand Out to Investors

The median investor looking at your proposal is in her 40s.  Her eyes are going, not to mention her brain.  I look at a lot of spreadsheets and analytic reports, and way too many are difficult to read and therefore hard to understand.

In an effort to make my life easier, I’ve summarized here the steps that will make it much

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How To Secure A Lead Investor

By Paula Taas, Founder Institute

You’ve created an amazing founding team, you’ve built a brilliant product that has been gaining a lot of traction, and now you’re looking to expand your company. How do you continue to build your business? By searching for a lead investor in your next funding round.

The lead investor is the first step in

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The Startup Failure Rate Among Angel-Funded Companies

With all the news about hundred million dollar rounds and billion dollar valuations, it can be hard not to look at the world of entrepreneurship and angel investing as a thrilling ride that only has one stop: success. But to be a successful entrepreneur or serious angel investor, you must have a realistic understanding of the startup failure rate and

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Need Funding? 2015 Is A Strong Year For Startups

2015 is shaping up to be a strong year for the startup and early stage investor ecosystem. Total startup funding applications are up across the globe and in multiple sectors, especially in the United States where the surging New York City tech industry is leading a nationwide growth in new startups.

Coming out of the second quarter of the year, the total number

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Measuring the Immeasurable: Evaluating Startups Qualitatively

At Hyde Park Angels, we evaluate startups based on quantifiable metrics related to traction, market size, and more.  But that’s not all we consider. In fact, sometimes the most important factors in determining whether we should invest are qualitative. While these can vary from deal to deal, there are a few that remain the same.

Understanding of the Pain

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Addressing the Dreaded Lifestyle Outcome

Posted by on May 18th, 2015

Three outcomes dominate exits of angel-funded companies:

Dead bugs – Startups that go out of business, returning less-than-invested capital to angels (usually zero).
Positive exits – Companies that liquidate with capital gains to investors, usually via a cash sale to a larger company.  While IPOs are possible, they are very rare for angel-funded companies.  The exits can range from simply return of

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Why Does Startup Pricing Vary by Location?

Posted by on May 15th, 2015

Entrepreneurs seem genuinely surprised to find that investors in Peoria or Little Rock are not willing to invest in startup companies at Silicon Valley prices.  After all, they just read in TechCrunch that investors funded a company similar to theirs at an $8 million pre-money valuation!

The valuation of startup companies shouldn’t be impacted by location, should they?  Guess again!  A

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How to Build a Unicorn From Scratch – and Walk Away with Nothing.

This is a grim fairy tale about a mythical company and its mythical founder. While I concocted this story, I did so by drawing upon my sixteen years of experience as a venture capitalist, plus the fourteen years I spent before that as an entrepreneur.  I’m going to use some pretty simple math and some pretty basic terms to create

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US Crowdfunding in 2014

Posted by on May 4th, 2015

Crowdfunding is the practice of raising money for a project or venture from a large number of people utilizing an Internet website or platform.  Funding from each individual can be quite small, $10 or less, although some projects have much higher minimums.  Projects include films, musical recordings, new companies, products, inventions, personal causes and many others.

Since the JOBS

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