Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Judy Robinettamazon.com
Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Financial assumptions and revenue sources: financial documents provided by you. These can be updates of the financial plans you submitted as part of your pitch presentation and term sheet information.
When it comes to someone trusting you with their money, your personal connections are some of the most valuable currency you can have. You need to build a quality network of business connections, and then use them to reach the investors you need.
The Berkus Method: In 1996, early-stage angel investor Dave Berkus created a model for evaluating prerevenue startups by using both qualitative and quantitative factors to assign specific valuations based upon the ways founders reduce four kinds of risk: technology risk (by developing a working prototype), execution risk (by having a quality manage
... See moreIf you have reasons to change or amend the terms, bring them forward in a calm manner. However, choose the battles you wish to fight: Select the three issues in the term sheet that you feel are most important to you, and focus on those. It will make the negotiation easier for you and for your investors.
However . . . every percentage of equity that you give away dilutes, or reduces, the percentages held by previous investors (including the founders). The number of shares a company issues is meaningless—it’s only the percentages that count. And while adding new investors will dilute the founders’ stock, if the infusion of capital will be used to gr
... See moreTresit’s revenue model: a one-time installation fee, and annual renewal fees for each school or institution that purchased it.
Here are some of the questions you should be asking about the people on the other side of your possible deal. • Are these investors a great fit for you and your startup? Are they excited by your business and enthusiastic about investing in you? Does the investor seem like someone you will be happy working with in the long term? • Do they share your
... See moreWhat Are the Details of the Investment You’re Proposing?
growth.” I recommend that you create a risk mitigation worksheet to use in your company. Then, be sure to address these five kinds of risk in your presentation, and be prepared to answer questions about them. Even if you don’t have clear solutions for every risk, simply showing that you are aware and are making efforts to mitigate them will go a lo
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