Secondary stock sales have become an increasingly popular mechanism for rewarding the founders who achieved significant growth in their business but what are they? Here’s what you need to know.
Traditional advertising has done one thing really, really well over the past 70 years. It’s stolen attention. What I mean by that is, advertising was created to take time away from content consumption and shift it to brand/product awareness. Gary Vee shares more…
Entrepreneurs tend to continually narrow the scope of potential competitors, and often claim to have no direct competitors. This raises a big red flag with potential investors, who conclude that no competitors means no market, or you haven’t looked, and the new startup is likely not investable.
Is there any downside to selling a startup? I always read the big headlines about how much Founders sold for, but after that, I never really hear from them about how it went. Is there a cost to selling a startup that no one talks about?
I am sure many of you have used Google Trends in the past. But, for those of you that are not aware of this terrific tool, now is the time to learn how valuable it can be for your business.
I believe that most entrepreneurs today, at least in the technology domains I frequent, still work in the business (“Technician’s Perspective”), rather than on the business (“Entrepreneurs Perspective”).
We’re starting to make some money — that was the point, right? Now, what do we do with all this cash? Should we re-invest it in growth or pocket it and live like (very poorly paid) kings? We don’t want to slow our growth but we also want to make sure this thing stays viable!
I’m always surprised by how many entrepreneurs are looking for funding without outside advisors. An experienced Board can give them credibility, as well as advice on the many pitfalls of starting a new company. Especially if you are a first-time business owner, the payback for this initiative is well worth the effort and cost.
For the startups and entrepreneurs who manage to attract investment and survive term sheet negotiation, there is still one more hurdle before the money is in the bank. This is the mysterious and dreaded due diligence process, which can kill the whole deal. In reality, it is nothing more than a final integrity check on all aspects of the business and the team.
Alex Iskold shares some insights he has picked up over the last seven years writing checks at Techstars NYC and 2048 focusing on how fund economics for pre-seed investing differs from other stages of venture investing.
Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork.