Monthly Archives: July 2011
This image sums it up.
How to Overcome the Problem With Small Crowdfunding Amounts
While crowdfunding is booming there’s a problem that comes with it. The seed capital amounts it enables you to raise tend to be small. The majority of crowdfunding transactions raise $25,000 or under for the borrower. This amount is not going to get you very far in most cases. However, there is a way to leverage the small amounts that crowdfunding can supply to raise additional capital. Continue reading
Are you looking for startup capital?
If your looking consists of posting startup capital requests online, you’re not really trying. Here’s a story demonstrating how entrepreneurs who end up attracting capital make it happen. Continue reading
How Does One Go About Developing a Business Model?
The business model is the engine that drives your company. It’s the cornerstone to any business plan. A good one will make instant sense to anyone who understands your particular industry. However, that’s no guaranty that they will invest. At the very least they will take you seriously if you have a credible business model. A good one should fit on the proverbial napkin. Continue reading
Should You Ask Investors to Sign an NDA First?
Here’s my answer. Sure why not, if they’re the 3Fs. If they’re venture capitalists or experienced angel investors, please don’t. You’ll get laughed out of the room. Continue reading
This is the First Part of a Free Series on Raising Seed Capital from Angel Investors
This series should be of relevance to anyone looking at raising capital down the road whether it be from angel investors or venture capitalists.
However, before we begin the series, allow me to get something off my chest. The label “angel investor” is one of the most misleading names ever given to anyone or anything. It creates significant confusion which then leads to a great deal of wasted time. A lot of first-time capital seekers infer from it that these are people who basically use their savings as grants to fund all manner of loopy or at least half-baked ideas. They also erroneously believe that the main criterion used for giving away this money is the level of the entrepreneurial wannabe’s need. The more the wannabe thinks that he or she needs the money the more obligated the investor is then to cut them a check. Continue reading
Watch Out for Dodgy Seed Capital Raising Fees
As many of you know, I’m not really a fan of using money middle-men to raise seed capital or any capital for that matter. Capital raising should always be the responsibility of a senior team member who hopefully has connections. When you hand over this key function to outsiders the results are rarely good.
These days the lone “middle-man” is often replaced by a group such as an angel investor club. The problem here is that these groups tend to create overhead that then needs to be covered. Moreover some are for-profit. This can lead to a Ticketmaster-style cascade of fees. Some well-know entrepreneurs are now leading a charge against groups that overcharge cash-starved entrepreneurs for the simple opportunity to present. Continue reading