The biggest mistake startup founders make in allocating their capital is not monitoring financial results. As a result, they end up engaging in activities that fail to enhance profitability. Here are three profit-eroding expenses startup founders should avoid. Sexy Markets Too many founders target markets that are sexy in order to attract great publicity. But […]
Lili Balfour
Entrepreneurs: Know What You Don’t Know
Steve Blank covers the difference between a board of directors and an advisory board in “Don’t Give Away Your Board Seats.” I’d like to pick up where he left off. Now that you understand the importance of attracting advisers, how do you find them? Take a look at a few successful companies you admire. Notice […]
How to Raise Capital in Any Market
Regardless of market conditions, anyone can raise internal capital. Raising internal capital requires a deep look inside operations – physical, virtual and mental. During the recent downturn, many of the companies I advised were discouraged by the lack of capital available. As the number of VC funds declined 30% to 1,183 in 2010, companies looking […]
Top 3 Mistakes Entrepreneurs Make When Issuing Equity
Below are the top three mistakes entrepreneurs tend to make when issuing equity. 1) They don’t create a capitalization table (commonly referred to as a cap table). A cap table provides clarity around ownership. It will assist entrepreneurs in understanding the effects of issuing too much equity too soon. Too often I see entrepreneurs freely […]