Funding & Finances

Why US Investors Should Consider Investing in Indian Startups

We just got off a Skype call today with Deep Malhotra, Partner at Gemini New Media Ventures LLP. We were talking about why US investors should consider investing in Indian startups. Here’s a video of Deep participating on a panel discussion focused on the same topic…

The Startup Grind (Incubators) by Dave McClure of 500 Startups

This video of Dave McClure giving a lecture on incubators is well worth watching…

Have You Considered an IPO in Sweden? It’s Another Way for Startups to Raise Capital

AktieTorget – which means ”Share square” in Swedish – is a unique Swedish setup enabling entrepreneurial companies to get access to the capital market. In this case, the capital market means the general public and a number of institutions that take an interest in promising, young companies.

AktieTorget is a stock exchange. The idea is that investors, particularly small investors whose investments in entrepreneurial companies will not give them power, are not willing to invest unless the company promises immediate listing after an IPO. Listing provides a modicum of security to the small investor. The promise of listing opens purses that otherwise would have been closed.

How Do You Go from Part-Time Hacker to Funded Startup

Hear what Don Dodge, Heidi Roizen, Jessica Livingston and Naval Ravikant have to say about going from a part-time hacker to a funded startup.

Is going public with a penny stock a good way to raise money for a startup?

QUESTION:

I’ve heard of startups going public with penny stocks. Is this a good way to raise money? What is the downside? Should I spend my time looking into this?

ANSWER:

Ethan Stone

Ethan Stone

by Ethan Stone, Stone Business Law

First, a quick but important clarification: I’m not your lawyer and this answer doesn’t establish a lawyer-client relationship. I’m giving a generic answer to a generic question to educate the users of this site. The information below is general in nature and should not be understood as a substitute for personal legal advice.

What happens to any convertible debt financing if my startup gets acquired?

QUESTION:

My understanding of convertible debt is that it is designed to convert upon the next round of funding. The valuation is determined by next round of investors. So what happens to any convertible debt financing if my startup gets acquired before another round of funding takes place?

ANSWER:

Ethan Stone

Ethan Stone

by Ethan Stone, Stone Business Law

The Top Venture Capitalists in the World

Here’s a short analysis of the top VCs in the world…

Collaborative Development Financings

This video was created by Richard and his daughter. Fun, creative and highly educational! For more videos like it, visit Richard’s blog at http://hsutube.com/

Richard Hsu is a Silicon Valley Technology Lawyer who believes we are so overloaded with information that if you cannot be brutally pithy and honest, it won’t get read.

What Are the Top 3 Qualities Angel Investors Look For

Ryan Scott is a successful entrepreneur and pioneer, humanist and philanthropist. He’s also an investor and advisor to startup companies and charities.

In this video, he talks about what angel investors look for in entrepreneurs.

Advice for Tech Startups from Angels and VCs

  • Sharon Wienbar, Scale Ventures
  • Steve Kann, Bridgewater
  • Brian Cohen, angel investor
  • Howard Morgan, First Round

What do they look for in an investment?

Everyone wants a thoughtful numbers, even if you are wrong. Lots of patents in a field make them wary. At an event, meeting, or otherwise, don’t forget the value of energy and hand-to-hand sales tactics. But — with extra stress — you need to be very upfront about what your product does.

Guy Kawasaki’s Advice for Entrepreneurs: Typers & Prototypers

Guy Kawasaki is the co-founder of Alltop.com, an “online magazine rack” of popular topics on the web, and a founding partner at Garage Technology Ventures.

Previously, he was the chief evangelist of Apple. Kawasaki is the author of ten books including Enchantment, Reality Check, The Art of the Start, Rules for Revolutionaries, How to Drive Your Competition Crazy, Selling the Dream, and The Macintosh Way. Kawasaki has a BA from Stanford University and an MBA from UCLA as well as an honorary doctorate from Babson College.

21 Steps for Entrepreneurs to Raise a First Institutional Round of Financing

by John Hagedorn, advisor to FLG Partners & retired CFO

Download the Full Paper: 21 Steps for Entrepreneurs

This paper’s primary purpose is to describe the research, analysis, and organizing sets which founders must complete with great rigor if they are to be successful in raising a first financing round from venture capital firms. The objective of the first 16 of these steps is to qualify the startup as having the potential to grow into a company which can reward the investors with the returns they require. This qualification is in not met by following an accepted outline for preparing documents and presentations. It is accomplished by the founders doing the homework that proves first to themselves, and then to investors that their venture meets the criteria for success posed at each step.

Seed Funding – Startups Through the Lens of Venture Capital

Jeff Clavier and John Lee talk about how newly formed companies in the seed stage can get funded.

Based in Palo Alto, California, Jean-Francois “Jeff” Clavier is the Founder and Managing Partner of SoftTech VC, one of the most active seed stage investors in Web 2.0 startups. Since 2004, Jeff has invested 110+ consumer internet startups in areas like social media, monetization, search, gaming or B2B/B2C web services. These investments are typically located in Silicon Valley, New-York and Boulder. With over 20 years of operational, entrepreneurial and venture capital experience, Jeff is able to add relevant perspective and value to his companies as they grow from inception to maturity, and hopefully, success.

Bill Coleman, Tom Kosnik, and David Hornik Discuss Entrepreneurship Through the Lens of Venture Capital

David Hornik, Bill Coleman and Tom Kosnik discuss their experiences working in Silicon Valley and share several lessons they have learned over the years.

David Hornik

For more than a decade, David has worked with technology startups throughout the software sector. In 2000, David joined August Capital to invest broadly in information technology companies, with a focus on enterprise application and infrastructure software, as well as consumer facing software and services.

Reinventing Finance, One Startup at a Time

Sean Park believes finance will change radically in the coming months. He talks about some of the fin-tech startups he believes in, from people reinventing banks to new payment systems. This video is about finance being reinvented by entrepreneurs with bold new ideas about what modern finance services should serve customers.

Top Five Mistakes Startups Make in Raising Angel Funding

What are the top 5 mistakes that entrepreneurs make when trying to raise angel funding?

This video was created by the the Texas Entrepreneur Networks, which puts startups and mid-market companies in front of Angel Investors around the state. Typically, companies raise between $200K and $3M. Once companies have raised the funding they are looking for, TEN can assist with go-to-market strategies to grow the business.

Esther Dyson (Angel investor) gives her Lightning Talk

Esther Dyson is a leading angel investor and entrepreneur with a special focus on health technologies, online services and air and space. Some of her better known investments include Flicr, del.icio.us and the Finnish S.A.D killer Valkee. Besides a technologist, Esther is also a trained space tourist!

Esther Dyson is an active investor in a variety of start-ups, focusing on technology. Her portfolio of private space and air travel investments includes XCOR Aerospace, Space Adventures/Zero G, Icon Aircraft, Coastal Aviation Software and Airship Ventures. She has flown weightless on Zero-G four times, but hopes to go up again soon.

Dark Sides of Crowdfunding a Product

by Joe Donoghue of Leardon Solution

With the funding environment nearly revolutionized by crowdfunding, Leardon Solutions has had the opportunity to work closely with successfully crowdfunded entrepreneurs. In the process we’ve learned a lot. Luckily, we have had the chance to work with a smart group of folks that handled the challenges of successful crowdfunding campaigns with grace but it’s not always easy.

Here’s a list of things that we recommend entrepreneurs take into account as they partake in a crowdfunding campaign.

Venture Finance by Chuck Eesley (Part 1)

Chuck Eesley discusses venture financing and raising money. The three main topics covered are the amount of funding, the structure of the deal, and sources of capital.

Chuck Eesley — About Me:

My research focuses on the influence of the external environment on entrepreneurship. Specifically, I investigate the types of environments that encourage the founding of high growth, technology-based firms. Although I build on previous literature that explains why entrepreneurs are successful on the basis of individual characteristics, network ties, and strategy, my major contribution is to demonstrate that institutions matter. I show that effective institutional change influences who starts firms, not just how many firms are started.

Venture Finance by Chuck Eesley (Part 2)

Chuck Eesley discusses venture financing and raising money. In this video, pre and post-money valuation along with dilution are discussed with example calculations.

Chuck Eesley — About Me:

My research focuses on the influence of the external environment on entrepreneurship. Specifically, I investigate the types of environments that encourage the founding of high growth, technology-based firms. Although I build on previous literature that explains why entrepreneurs are successful on the basis of individual characteristics, network ties, and strategy, my major contribution is to demonstrate that institutions matter. I show that effective institutional change influences who starts firms, not just how many firms are started.