The most successful startups begin with a founder with a desperate need to solve a particular problem.
Need to raise funding for your startup, but are still pre-revenue? Angel investors will say you’re too early for them. Welcome to the “pre-pre-seed round”
This is why the CEO of most startups should be a marketing specialist.
Everyone wants to be a startup founder. But not everyone is cut out for the life. Here are the 8 traits of successful founders.
Venture investors have a reputation as greedy bastards preying on poor startups. But venture investors are looking to make money investing in the high-risk, illiquid stock of early-stage startups. The numbers only work with a big exits of 100x or more.
For early-stage startup investing, the J-curve is a killer. The failures fail quickly while the successes can take a decade to show any return.
Higher valuations are generally wonderful. But if the valuation is too high, it can kill the company in later rounds. Here’s how to find the best valuation for a hot startup without getting overvalued.
As a US taxpayer, investing in corporations outside the US is difficult. Here are the 3 reasons why, and what you can do about it.
Angel investment groups are the biggest source of funding for startups at the pre-seed/seed stage. groups operate and think of them as an early-stage VC. Founders who understand how angel groups operate are far more successful at raising funding.
What is the valuation of a startup? It’s the amount investors are willing to pay. It’s best to think of company valuation more like an auction than the purchase of public stock.
A pitch begins with a description of the problem and solution. You either hook the audience immediately or leave them lost from the beginning.
The pitch deck provides investors with a summary of your business. It needs to be comprehensive while succinct and tell a cohesive story.
Here’s why dominating a niche is a better business plan than targeting a small sliver of a huge market.
When is the right time to go full-time on a startup? There’s no right answer for everyone, but here’s how I made my own decision.
The biggest challenge for startups is the earliest stage. Here’s how to find funding in the earliest stages before you’re ready for a seed round.
Creating a great product is only half the battle. Now you need to market it so customers can find it. Early-stage startups don’t have much money to spend. Here is how to build a startup on a tiny budget.
The biggest challenge of bootstrapping a startup is funding. Here are 10 sources of funding to make launching your startup possible.
But before starting down the path of raising venture capital, startups should consider the possibility of bootstrapping instead.
Distributors and resellers can help a startup find a wide audience, but the company has to drive the sales process itself to succeed.
Understand the differences between angels and venture capitalists, and the different motivations and constraints each have for investing.
Even long-time angel investors tend to think of company valuations as a single number. But there are two numbers: the pre and post-money valuations. That detail is important to understand to avoid getting burned like me.
Don’t waste your time pitching on an uncapped note or SAFE. If your terms don’t include a reasonable valuation cap, I won’t be investing.
The choice between SAFE, Convertible Note & Equity is as important as the terms.
My 14 reasons to turn down an investment from a VC and look for another partner.
Founders beware! Scammers are targeting startups with sophisticated scams posing as fake investors. Learn how to avoid losing your money to criminals.
Startup advisors need to be compensated with stock options. Read how much is appropriate and how to structure it
HardTech startups have to choose between licensing their technology and selling products to customers before taking investment. Understand the complex trade-offs to choose the business model that’s best for your business and goals.
What is a suitable salary for a startup founder? Find out in this article.
Think SPACs are only of interest to Wall Street investors? The SPAC craze is having a huge impact accelerating early stage investments.
You need two versions of your pitch deck – one for presenting in person and one for sending out. Understand what material you need to include in each.
Here’s the real reason you absolutely need an investor on your board of directors.
Everything a founder needs to know about corporate structure.
Understanding the difference between the end user, customer, and decision maker is key to mastering sales.
Startups! This is a plea from your angel investors. Keep us in the loop, bad news and all!
Businesses built for profitability rather than growth are great for founders, but leave investors in a pickle.
Early-stage startups need to always be discovering. Which means the job of sales needs to remain with the CEO.
What separates great pitches that attract investors from the vast majority that don’t? The one thing to get right is…
For startups that will need huge amounts of capital, investing in the seed round as an angel investor is best avoided.
Unleash the power of storytelling to let investors experience the world through your users’ eyes.
Go Big or Go Home is the wrong advice for many startups. Here’s why you shouldn’t change your business plan to meet venture funding models.
How do you build a startup if you can’t get venture funding? Learn all the options to get started here.
Venture investors require startups to have projected revenues of at least $25M by Year 5. Find out why.
Who will fund your pre-seed round? It’s not angels and VCs but people in your network and industry insiders who understand what you’re building.
What’s the valuation of your startup? It all comes down to how attractive the investment is compared to all the other startups.
Wrap up your pitch with your ask – buy our stock now, and tell us the terms of the deal!
The pitch needs to answer the question: is this a good investment? And that boils down to the exit, when the investor makes a return.
Pitching Angels 12: The Fictional 5 Year Revenue Projection (And Why It’s the Most Important Slide in Your Deck)
5-year revenue projections are complete fiction, and yet, absolutely necessary to your pitch. Here’s why.
The best way to get investors excited in your business is by showing traction
Here’s how to get funded if your startup team doesn’t makes the VC’s drool.
The three most important factors in startup success are the team, the team, and the team. But what exactly are we looking for in a team?
What we want to hear is not that you have no competition, but how you’ll prevail over all of them.
To keep out competition, you need a moat. Learn how to build a moat that’s wide and deep, and stocked with alligators to build an enduring advantage.
Wrap up the introductory third of your pitch by connecting the dots between your wonderful product and the millions of people who need it.
In theory, market sizing is simple, but it rarely actually is. This article reviews the TAM/SAM/SOM model for market sizing, but recommends alternatives that are often better suited for the real world.
A pitch starts with the problem and your solution. You probably think this is the easy part of the pitch,. but it’s actually the most difficult section to get right
A pitch deck follows a familiar pattern. This article gives an overview of what makes a compelling pitch and summarizes the slides that should be included.
What does an investor want — an exit. That’s the only way we make money. Consider whether you really want to build a business for acquisition and make sure the entire pitch tells the story of how you get to a successful exit.
To pitch effectively to potential investors, you have to see the world from our eyes. What do we want, and why should we invest in you and your business? In most cases, the simple answer is money – we invest money to make money, but that’s not the entire story.
Hi. My name is DC Palter. Part time angel investor, part time startup mentor, full time startup entrepreneur. Oh, and published author and wannabee novelist, too. I never set out to become an angel investor or even an entrepreneur but my life has taken many unexpected twists and turns and that’s where I find myself […]
Subscribe to receive your insights weekly