How Long Does It Take to Raise Capital?
Welcome to video Fridays from The Start Up Garage A place where Tyler Jensen, The Startup Garage’s founder, answers questions directly from viewers Key Take Aways From Video: 1) The average time is somewhere between three to six months for both you Angel round and your Series A round. 2) It really breaks down into […]
What Type of Funding is Best for My Company?
Welcome to video Fridays from The Start Up Garage A place where Tyler Jensen, The Startup Garage’s founder, answers questions directly from viewers Key Take Aways From Video: 1) There are really three main sources of funding, and to determine which source is right for you, you need to know what stage your company is […]
Free eBook: Raising Capital From Friends, Family & Founders
Download the Capital Raising Guide for startups. This overviews best practices for raising money from the first people you go to — your family, friends & founders. Dealing with money in personal relationships can get a bit tricky. Raising Capital From Friends, Family & Founders will cover fundamental concepts, legal issues and material you’ll need. […]
How to Allocate Friends and Family Capital
The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. The use of your initial friends, family, and founders (FFF) capital should be directed towards achieving the milestones that will […]
Milestones That Friends, Family, and Founders Care About Before Investing
The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. As a startup with zero to very low revenue, your friends, family, and cofounders do not expect you to have […]
The JOBS Act Negative Impact on Friends and Family Funding
2012’s Jumpstart our Business Startups Act, known as the JOBS act, went into effect last month encouraging entrepreneurs and exciting the startup community. This act intends to increase jobs by making it easier for businesses to raise money to grow and expand their operations. One provision of the bill – the ending of the ban […]
Raising Startup Capital Through Convertible Debt Financing
Most startup founders do not have enough capital to launch their companies and need to raise money at some point. The first milestone in a new startup’s financing is called ‘Seed Capital’ which refers to the initial investment raised by the founders from their friends and family, or commonly referred to as FFF (Friends, Family […]
Startup Funding Preparation: Approaching Friends and Family
Starting any business will require some initial capital, even if only to register the business. Most startups will have additional expenses to develop the product or service, acquire a physical location, pay employees, market the business, etc. Unfortunately, angel investors and venture capitalists are rarely interested in funding a company at this stage. There are many reasons […]
Drawbacks of Startup Funding From Friends and Family
Part 2 of the two-part series considers the potential drawbacks of raising startup funding from friends and family. Part 1 detailed the benefits. Most of the drawbacks relate to interpersonal issues that can occur. It is important to take the business relationship seriously. Be transparent about the risks, lay out the business plan for the […]
Benefits of Startup Funding from Friends and Family
During the early stages of a business, the founding team should discuss the startup’s funding strategy. Based on cost and revenue predictions, long-term funding needs can be projected. Mobile apps must spend $30,000/year in marketing to be a top earner. SaaS business models are unprofitable for the first 12-24 months of a given customer’s life. […]
