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

Blog Archives

How do venture capital firms make money by investing in startups?

The venture capital fund itself makes money…

…by investing early in a startup company’s life, when success is not at all assured. In exchange for investing capital to help the company grow, the fund receives an ownership interest in the company. Because in the early days a company will not be worth very much, the fund’s ownership interest will be

Read more >

How do angel investors typically get the initial capital to start off in their profession?

There are very, very few “professional” angel investors (as opposed to venture capitalists, who are, by definition, professionals.)

That said, many active angel investors were themselves entrepreneurs, which is where they made their initial money that they can now invest.

Startup Capital: Feast or Famine?

For years there has been a pervasive opinion across the entrepreneurial landscape that the US has a shortage of capital required to startup and grow new ventures. It is suggested that companies cannot find the cash necessary to start new and exciting ventures. Furthermore during this economic downturn, we’ve heard a crescendo of voices lamenting the lack of startup funding,

Read more >