Riding a Wave of Hype: Blockchain, AI, VR & More

My friends at Angel Camp visited us today, and we discussed how to invest in startups. One of the best questions was how do you know if a tend is worth investing in or overhyped?

MY ANSWER: Don’t bet on the trend alone. You need to look deeper. You need to analyze what value the startup is creating for their customers. It’s not enough to be using a new technology like AI or blockchain.   Read more...

Should You Raise Venture Capital for your Startup?

Before forgoing venture capital, I want you to honestly ask yourself these questions:

• Do you like the idea of living off of rice and beans for years?

• Do you mind slaving shoulder-to-shoulder with underpaid, sweaty teammates in a space far too small?

• Can you handle the endless nagging of concerned friends and relatives?

• Are you skilled at begging?   Read more...

Captain Hoffman: How to Become a Unicorn Start-up

As an entrepreneur and an investor, do you often ask yourself: what is the difficult part of being creative? When will my innovation be profitable? And is it really the idea that lies at the heart of entrepreneurial success?

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Founders Space Investor Pitches

Apply to the Founders Space Investor Pitches and Angel Syndicate.

Convertible Notes: How They Work & What You Need to Know

I tried to put all the basic resources in one place…

Everything You Ever Wanted To Know About Convertible Note Seed Financings
http://techcrunch.com/2012/04/07/convertible-note-seed-financings/

How Convertible Debt Works
http://www.feld.com/wp/archives/2011/10/how-convertible-debt-works.html

Orrick Convertible Note Term Sheet Creator
https://tsc.orrick.com/

Convertible Note Template
http://www.docracy.com/2740/convertible-note-term-sheet-template

Why Convertible Notes Are Sometimes Terrible For Startups
http://techcrunch.com/2012/09/05/why-convertible-notes-are-sometimes-terrible-for-startups/

Revisiting Paul Graham’s “High Resolution” Financing
http://www.bothsidesofthetable.com/2010/09/25/revisiting-paul-grahams-high-resolution-financing/

Is Convertible Debt Preferable to Equity?
http://www.bothsidesofthetable.com/2010/08/30/is-convertible-debt-preferable-to-equity/

Series Seed is a Viable Option
http://www.seriesseed.com/   Read more...

I Put $100k into My Startup and Now I Want to Raise Capital from VCs — Should I Treat this $100k as a Loan? What’s Fair?

If your startup is really hot, investors probably won’t object to having your $100k treated as a loan. However, most investors don’t like the idea of their capital going to payback founder loans. After all, they are investing in the company and want 100% of their capital to be put into growing the business.

With this in mind, it may be in your best interest to consider your investment as a non-reimbursable expense. That’s what investors would prefer.   Read more...

The Best Startup Pitch Decks

The Best Startup Investor Pitch Deck
http://bestpitchdecks.com/

Best Pitch Deck Examples on SlideShare
http://bitly.com/bundles/royrod/2

6 Awesome Investor Pitch Decks
http://investorpitches.com/6-awesome-investor-pitch-decks-that-any-entrepreneur-can-learn-from/

The Pitch Deck That Helped A Startup Land $6 Million
http://www.businessinsider.com/seed-round-pitch-deck-tempate-2013-8?op=1

Brad Feld’s Take on How a Convertible Debt Financing Works

Here is a link to Brad Feld’s take on how convertible debt financing works…

http://www.feld.com/wp/archives/2011/10/how-convertible-debt-works.html

Play it Safe with Y Combinator’s SAFE: Simple Agreement for Future Equity

Every founder should look into the “Safe Financing Documents” by Y Combinator.

http://ycombinator.com/safe/

The Safe (simple agreement for future equity) is intended to replace convertible notes in most cases, and we think it addresses many of the problems with convertible notes while preserving their flexibility. In addition to being simpler and clearer, we intend the safe to remain fair to both investors and founders.   Read more...