Access to capital has long been a necessary ingredient to launching entrepreneurial endeavors. In this section you will find stories, best practices, and connections to a variety of sources of capital.
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Any entrepreneur who hopes to raise capital from individual investors, so-called "angels," should be properly prepared with a presentation, business plan, list of potential angels, and outline of the opportunity his or her new venture affords. The author explains that it's also important to avoid making such mistakes as allowing investors to have too large a stake in the enterprise. That could cause problems should the company fail, he writes, in an article filled with specific tips for dealing with these financiers.
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Angel investors are funding companies at the seed and start-up stage, as venture capitalists retreat from that market, says an angel investor and former entrepreneur.
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Angel investors have been banding together in groups, a development that benefits both the financiers and the companies they fund, says a former entrepreneur who chairs the nation's largest angel network.
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When going for round one financing, what should your five-year projections look like? This brief article provides excellent, practical advice. Key points: Know your numbers inside and out, show clearly how your projections were built, and be ruthlessly honest with your potential investors and yourself.
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Starting a business usually involves committing personal finances, no more so than at the beginning, when banks are loathe to extend credit.
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Communication is the vital link in building a relationship with a business partner, in this case a mentor (angel) capitalist. Learn where and when to use the right presentation for the right audience whether it be an angel or venture capitalist.
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This article isn't about PowerPoint but about a much more useful topic: Which questions should an entrepreneur answer in a funding pitch? A veteran VC who's suffered through countless poor business pitches, Brad Feld blames inadequate content--which PowerPoint delivers much too easily.
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This well-written article gives practical advice on how to think about acquisitions and five no-nonsense tips on how to do them productively for all concerned.
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Numerous factors affect how angels value a company. Primary are the strength of the management team and the size of the opportunity, or a company's potential to scale. Accompanying this article is a valuation worksheet that entrepreneurs can use to better understand what investors look for and to identify factors that can justify higher pre-money valuations. Investors will find it useful to compare companies and determine whether valuation should be higher or lower.
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Thinking about venture funding for your growing business? A VC lays out the steps and provides typical expectations on valuation.