How Startups Survive the Financing Valley of Death and Launch
Rock star venture capitalist Paul Kedrosky lays it on the line about how the vast majority of startups are funded initially. According to Paul, 84% of fast growth companies never receive a dime of venture capital.
less than one-in-five of the fastest-growing and most successful companies in the United States had venture investors, according to the study. The report evaluated venture financing among companies on the Inc. 500 list of the fastest-growing private companies. Only approximately 16 percent of the roughly 900 unique companies on the list from 1997-2007 had venture capital backing. (pdf) Continue reading
Shark Tank Lessons for Entrepreneurs Seeking Startup Capital
Shows such as Shark Tank and its international versions from Canada and the UK are worth watching if you are a first time capital raiser. They give you a very good sense of what it’s like to pitch savvy investors. You need to invest time figuring what tough questions will be asked and prepare answers that will satisfy the asker.
Here’s a short article on one Shark Tank winner who six months later was shocked to discover that she would not be getting any money after all. What happened? The investor changed his mind. This happens a lot more than entrepreneurs like to think. Read How Not to Become ‘Shark’ Bait by Eric Sherman. Continue reading
How to Negotiate With Investors Like a Boss: Element Bars’ Founder Jonathan Miller Goes Head-to-Head with the Shark Tankers
This is one of the funniest things I have seen when it comes to negotiating. This entrepreneur has true chutzpah. I’m not so sold on the his energy bar business due to scaling concerns, but his self-confidence and negotiating style are a wonder to behold. He’ll do well in business whether it’s with his current company or another one. Continue reading