Top 8 Faux Pas Claims by Entrepreneurs Raising Capital
What Not to Say to Potential Investors Yes, you need to impress an investor if he/she is going to break out the checkbook. However, there are some common claims made by first-time and seasoned entrepreneurs alike that do not resonate well with investors. Some of these claims are infamous buzz words that can be explained […]
The Importance of an All-Star Management Team
The most cited answer among investors – and perhaps the most underrated factor among first time entrepreneurs – is the startup team. There may be a need for your product or service, the market may be enormous, your business model may be attractive, there may be few competitors in the space, and you may even […]
Ban Overturned on Publicly Advertising You Are Raising Capital
Raising Capital? Shout It From the Rooftops! The Securities and Exchange Commission (SEC) voted to overturn the ban on “general solicitation” or publicly advertising that your company is raising money. As a result, the SEC has deemed it legal for private companies to tell anyone that they are raising money, which was previously illegal. How […]
Angel Investor Stewardship
Angel Investor Stewardship – An Underrated Skill One of the most underrated skills that a startup CEO needs to know is how to keep his/her investors updated, excited and engaged. It is through the lens of the CEO that investors know what’s going on, and in some ways, engage with the businesses. Furthermore, if you […]
Investor Activity – 2012 Summary
Private equity fundraising improved in 2012, with the amount of aggregate capital raised by closed funds increasing from $312bn in 2011 to $327bn in 2012, an encouraging sign for the industry. However, the number of funds closed fell from 911 funds in 2011 to 761, indicating limited partnerships (LPs) are now often placing more capital with fewer […]
Pitch Deck for Angels and VCs
The single most important thing that the VC is going to be investing in is YOU! Your pitch deck presentation is simply a visual tool to help you deliver your message. It is paramount that the audience is solely drawn to you, and that your deck merely contains short bullet points, headlines and images that […]
TED Talk on Pitching to VCs from “The Pitch Coach” David S. Rose
As an entrepreneur, David Rose has raised millions for his own companies. As an investor, he has funded millions more. According to the “The Pitch Coach,” the single most important thing that the VC is going to be investing is YOU. “Therefore, the entire purpose of the VC pitch is to convince them that you […]
Pay to Pitch? NEVER
Your start-up should never have to pay money to pitch to potential investors. Several “angel groups” will express interest in your start-up only to inform you later that they charge a fee, sometimes up to $5,000. Some of these wealthy angels argue that these fees act as a filter. First, a potential investor should be able to tell whether […]
The Rolling Close
A rolling close is when you raise capital, usually from several different investors, over a period of time as opposed to all at once. The initial investor(s) agrees to a rolling close (i.e. a 3 month window) during which other investors can invest at the same terms. Whether it’s a matter of logistics for investors […]
What is Revenue Financing?
Business Revenue Financing, also known as Revenue-Based Funding (RBF), is a means of securing funding by giving investors a percentage of total future revenue based on previous (and projected) sales revenue figures. Often described as a hybrid of the traditional equity funding model, it provides the entrepreneur a funding source based on the performance of […]
