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

Category Archives: How To Fundraise

If I have a great startup idea why should I ask for funding?

“would a great idea be promoted without any marketing?”

By whom?

According to that theory, Apple should cut out its entire multi-billion dollar sales and marketing and retail store divisions, because all of its great products will sell themselves.

It’s wonderful that you can (now and forever) program, maintain, market and support your product yourself. But if you ever expand

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How often do investors take a meeting with companies that they have rejected when the company was in its early stages?

It happens, but it’s not typical, given their limited time and the large number of companies they need to process in order to find the “keepers”.

Things that increase their likelihood of being open to another meeting after having previously passed on an investment:

A case where the entrepreneur was specifically asked to “come back after they have more traction.”

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What are the best New York City events to attend to meet VC’s and Angel investors?

This is a somewhat tricky question. Although there are many, many excellent events each week in New York that it would make sense for a startup entrepreneur to attend (see Gary’s Guide, Startup Digest, or This Week in NY Innovation), the truth is:

VCs and serious investors don’t go to most of them, and the odds are slim that even

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Don’t Forget Grants If You Need Early Seed Money

In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors.

A

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7 Steps To Making A Great Entrepreneur Impression

Entrepreneurs are all about firsts, and the most important is you making a great first impression – on investors, customers, new team members, and strategic partners. Poor first impressions can be avoided, but I’m amazed at the number of unnecessary mistakes I see at those critical first introductions, presentations, and meetings.

The key message here is “preparation.” People who think

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Don’t Let Investors Conclude Your Startup Is A Hobby

Even when your startup is a one-man show and lots of fun, a “business” needs some discipline and controls to keep it from being defined as a hobby by investors, and assure some financial return. Like it or not, you are now entering the dreaded realm of specifying and documenting “formal business processes.” The right question is “What is the

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10 C-Level Positions That Are Red Flags For Funding

It’s your startup, so you can give early partners any title you want, but be aware of potential investor and peer implications. VCs and Angel investors like to see a startup that is running lean and mean, with no more than three or four of the conventional C-level or VP titles. More executives, or other more creative titles are seen

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What is the best approach to get funding for my startup?

When you create a profile on Gust, you immediately get emailed a link for a free download of Bill Payne’s excellent book “The Definitive Guide to Raising Money from Angels”, which is an excellent overview of the whole process. Good luck!

*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *

What is the process of a (new) VC firm raising its first fund?

There are some great answers here already (and there’s no way I’m going to try to top Terrence Yang‘s magnum opus :-), so I will simply point you to a first-hand account of the challenges of VC fund-raising by Alan Patricof, the founder of Greycroft Partners.

What are some key points to look for when reviewing an investment offer in your startup?

There are two separate and distinct sets of things that you need to look at when evaluating an offer.

The first, and most important, has to do with who the investment is from. It is impossible to over-emphasize the value of “smart money” and “good money” over “dumb money” and “evil money”. You should do at least as much diligence on your potential investor

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