Thoughts on startups by investors that
fund them & entrepreneurs that run them

Category Archives: Invested Interests

Practice Entrepreneur Integrity As Seen By Others

Image via Flickr by Zaneology

As an entrepreneur, your personal integrity is critical for getting and keeping the support of investors and team members, and your company’s integrity is critical for getting and keeping customers and vendors. But in a practical sense, what does that really mean?

Most definitions of integrity include something like “the quality of being honest and morally

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Why should different stock classes in a startup be created?

A useful way to look at it is the difference between current value and potential value.

When an investor puts money into a company in exchange for an ownership stake, mathematics means that the amount of ownership the investor receives for the amount of the investment determines the “value” being assigned to the existing company before the investment.

As an example, let’s say that I

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When Are Business People Entitled To Be Entitled?

Image via Flickr

Where did this sense of entitlement in our business culture come from? I’ve written about this before, but I was reminded again a while back at a conference for startups when an entrepreneur started berating investors for not funding early-stage startups. It sounded to investors like me that they felt a funding entitlement for their startup idea.

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How important is trust in business partnerships?

There are three separate questions you’re asking here, so let’s take them one at a time:

How important is trust in business partnerships?

It is critical. Vital. The single most important thing. Without trust you will spend the entire relationship looking over your shoulder and second-guessing everything your “partner” does and says. This may well destroy your entire business.

Are a lot of business

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If I have a great startup idea why should I ask for funding?

“would a great idea be promoted without any marketing?”

By whom?

According to that theory, Apple should cut out its entire multi-billion dollar sales and marketing and retail store divisions, because all of its great products will sell themselves.

It’s wonderful that you can (now and forever) program, maintain, market and support your product yourself. But if you ever expand to the point

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Think Hard Before Jumping From Corporate To Startup

Photo via Flickr by Eric Chan

I talk to many people who have spent years struggling up the corporate ladder who dream of jumping ship and becoming an entrepreneur. I hasten to tell them that every job move is fraught with risk, but the move from employee to entrepreneur is on the high end of the risk curve. It’s a

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Is there a difference in expectation and attitude between Angels in the USA vs those in other Geographical regions and are there disadvantages because of this?

Surprisingly, no. Angels of a certain ‘level of professionalism’ have more in common with each other regardless of geography, than do novice and ‘super angels’ in the same city.

I am friends with many professional angels from around the world, and my analyses (allowing for our individual investment preferences) are virtually identical to those of Dave Berkus in Southern California, Matey

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Where Is Your Technology In The Gartner Hype Cycle?

Image via Wikipedia

The Hype Cycle was a concept put forward by Gartner, Inc. back in 1995 meant to apply to technology product evolution and acceptance. As I was reading about it a while back, it occurred to me that the concept relates directly to how investors see startup opportunities and potential success as well, at least those with technology

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What are key issues for companies to keep in mind when obtaining investment from an Angel group?

The main one is simultaneously obvious and under-estimated in both directions: you are likely getting a bunch of small-ish investors at once. This might typically be anywhere from five to twenty-five investors each putting in somewhere between $10,00 and $100,000 (depending on the group.)

The good side is that you now have 5-25 smart, connected people rooting for you. If you

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How To Build Startup Credibility Before Your Brand

Blog image via Pixabay.com

With the estimated 510 million live websites at last year-end, and 280,000 new ones being added every day, the biggest challenge for an entrepreneur is to get found, and get some credibility for a new startup. I can attest from experience that publishing a regular blog to properly showcase your brand value, even before you have

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