The Trouble with Using Finders to Raise Funds
Sometimes a company will engage a “finder” to help it find financing. I always tell founders that they should confer with the company’s legal counsel when considering whether to engage a finder.
Sometimes a company will engage a “finder” to help it find financing. I always tell founders that they should confer with the company’s legal counsel when considering whether to engage a finder.
Founders often seek advice regarding the amount of capital to be raised. The conventional wisdom is to raise sufficient capital to permit the company to achieve a milestone that will result in a material increase in the company’s value. The milestone might be…
How does a technology startup determine its valuation? Is it an art, a science or a combination of the two? Does a startup’s valuation increase if it has a slick pitch deck and a clever company name? Should a startup use a Ouija board to determine its valuation?
“I think we need about $1,000,000 to $2,000,000 for our first round of funding. Should we use convertible notes or issue preferred stock?” This is one of the most common questions we get from entrepreneurs looking to raise their first round of outside funding. When deciding between convertible notes or preferred stock, consider these key factors.
Raising capital for a new startup can be a daunting task for the founders. There are several types of investors and capital sources for startup projects, including friends and family members, angel investors (high net worth individuals), venture capital funds, corporate/strategic investors, and government grants. Each of these capital sources has different investment criteria and expectations.