Talented entrepreneurs are nothing if not resilient in the face of change: Market forces, competitive threats, technological shifts, you name it. In recent years, government regulation has emerged as another such force to be reckoned with in the technology industry. Startups and founders need to come to terms with the stark reality that the rules of the game may be
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Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does
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Are you wondering about angel investment? How to find investors? What steps you need to take?
I suggest you start by asking yourself these three questions. If you can’t honestly answer “yes” to all three, revise your plan, beef up your team, refocus, or pivot.
Oddly, perhaps, one of the most difficult decisions entrepreneurs face arises once the company begins to succeed. That’s usually when the first really “strategic” potential investors start to show up, presenting the question: sell a big chunk (or all) of the company at today’s valuation, or double down and go for the life-changing money?