Why Tech Startup Investors Expecting Revenue are Wrong
Monday, 04 April 2016
A far too frequently overheard conversation in the startup community goes something like this: “Apparently neither Instagram nor Snapchat had paying customers while receiving both seed and series A funding?! I couldn’t believe it. Investors, advisors, and incubators these days are constantly trumpeting that a monetization model (or at least an anticipated revenue trajectory) is
- Published in Startups
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Startup Validation in 12 Steps (Hint: It’s Not About Sales)
Monday, 17 August 2015
Among the most cited frustrations by entrepreneurs that can’t get funding, is that they have customers and sales, and that they’re being encouraged to get more. And yet… As we explored in a previous post (“Should I be raising money?”), with the utmost deference and respect to investors, the worst advice you might hear from
“Should I be raising funds?”
Friday, 07 August 2015
It’s a question asked so frequently, in a variety of different ways, that it finally occurred that it would be a good discussion to have. Should you be raising money? Of course the cop out is to reason that of course one should; you have revenue, customers, and you’re growing but you just can’t get
- Published in Raising Capital
The Tale of Two Founders
Tuesday, 24 March 2015
Yesterday, famed New York Times cartoonist Kaamran Hafeez featured a sketch that has garnered quite a bit of attention in the startup community. Implied by one “faction” (a term I’m using not to be critical but to distinguish) to offer a tongue-in-cheek jab at founders and investors who arguably embrace market share and scalability over
- Published in Startups
The Pitch Deck Slide That Can Make you Look Like a Moron
Tuesday, 17 February 2015
Okay so perhaps implying that you might be a moron is a bit harsh but let’s be realistic, as a startup in need of funding, if you fail to secure that funding simply because you haven’t done your homework or your failure to communicate effectively, you’re a moron. I’ve explored in the past, quite a
- Published in Raising Capital, Startups
When Raising Capital, What is a Broker-Dealer Registered with the SEC?
Friday, 19 December 2014
With the advent of crowdfunding and the ongoing changes to how startups might raise capital, prompted by the JOBS Act, entrepreneurs are frequently asking about the role of a broker-dealer. Why? Let’s start from the beginning with an understanding of what exactly is a broker-dealer An individual, company, or organization that trades securities (a catch-all term
- Published in Raising Capital, Startup Ecosystems
How to Write an Effective Pitch email to Angel Investors
Monday, 01 December 2014
The challenge of raising capital will forever frustrate us as there is no right way to raise money; it takes time, perseverance, patience, and just the right fit. But, the litany of pitch consultants, books, incubators, and Angel networks seem to direct entrepreneurs in one consistent direction, and though few of those guides speak so bluntly
- Published in Raising Capital