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

What are the main motivating factors for someone to take up entrepreneurship?

A) In a capitalist economy, because they seek to generate an economic return in the form of fungible cash that can support their personal needs and desires.

B) In many cases because they find it fulfilling and a good match for their skill sets, just as artists, dentists, lawyers or competitive athletes finds it fulfilling to go into their respective fields.

*original

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What is the most viable model for equity based crowdfunding?

One of the following two:

Revenue-backed, interest-bearing notes with a kicker multiple
The funds go into the company as a loan, and get repaid with interest by distributing a fixed percentage of gross revenues (say, 5%) among all the note holders. Once the base+interest has been returned to the investors, the company continues to pay out a percentage of revenues (perhaps at

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What are good questions to answer for business plans?

This is my answer on Quora to ‘what are good questions to answer in a business plan?’

Congrats on your question. Basing your planning on what questions to answer, as you suggest, is a really good way to do it. Everything in business planning is case by case, and every plan is unique, so you’re on the right track.

First answer these

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Are You ‘Hands On’ Enough To Succeed In A Startup?

Image via McCombs.UTexas.edu

There is no substitute for diving into the key details of a new startup. Executives from large companies have sometimes long forgotten how to do this (“My people will contact your people to work out the details.”). Others hire consultants, or outsource much of the real work. These executives won’t survive long in a startup environment.

An obvious

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Where can I find a list of Angels who are also impact investors?

The two leading impact investing angel groups in the US are Investors Circle(http://gust.com/angel-group/inve…) and Toniic (http://gust.com/angel-group/toniic).

*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *

Where can I find data relating to Angel Investment?

Unfortunately, none of this data exists. Period. The reasons are (a) there is no such thing as an “average” angel investor, and (b) there is currently no way to track the activities or record of individual investors.

That said, the rough ranges would be as follows:

Good Advice, Bad Advice, Land Mines on a Path to Heaven

Having just read James Altucher’s Ultimate Cheat Sheet for Starting and Running a Business, I’m fascinated by a collection of bold, very well written, and remarkably unambigious advice, most of it great, some of it terrible. The effect is like a path to heaven with hidden land mines.

Read it, but don’t believe it. Think about each of the 100 points.

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Would You Be Able To Deal With A Startup Failure?

Image via TheConversation.com courtesy of Flickr/Alex.E.Proimos

If your first startup fails, you are about average. Most entrepreneurs fail on at least one attempt. Investors agree that an entrepreneur who has never failed probably hasn’t pushed the limits. What investors look for is not that you never fail, but that you learn from the failure, maintain a positive attitude, and work

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Are convertible notes typically issued along with stock in Series A?

No, because they are, by definition, two completely different things.

“Series A” is a shorthand way of referring to what is typically the first institutional round of investment in a company, made in the form of purchasing Convertible Preferred Stock. A “Convertible Note” is a loan to the company, in which the principal (and often the interest earned to date) converts into Convertible

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Sayings From My Father

It is safe to say that my father has been, by far, the most important influence on my life as an entrepreneur. Back in the days of the dotcom boom, when I was in my 30s, I was delighted to be named a finalist for the prestigious Ernst & Young “Entrepreneur of the Year” Award in New York. It was

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