The Financing Landscape for Startups and Early-Stage Companies Today

The Financing Landscape for Startups and Early-Stage Companies Today

 

By Bob Norton, Serial Entrepreneur and Creator of The CEO & Entrepreneur Boot Camp

 

This article is an introduction to the financing of any early-stage company across the stages from seed to Series B. The financing landscape today has changed radically with many more options. Some financing is easier to get but generally, equity financing is hard to get for most companies without a revenue history.  Everything you learned about this topic in the last ten years, or that the press printed more than one or two years ago, may now be obsolete.  Sure, there are unicorns and $10M+ investment every day, but there are about 5,000,000 new companies every year too.  The companies and teams getting this level of money has a long track record of successful returns to investors, proven cash-flow, or at least customer acquisition costs and a huge market opportunity.  They are also likely...

Continue Reading...

Top Ten Tips for Raising Angel Financing Today

Top Ten Tips for Raising Angel Financing Today

By Bob Norton, Serial Entrepreneur and CEO Coach

Angel Investors (“Angels”) have become a much more important source of capital than ever before. Statistics show they have invested more than VCs in some past years and almost always invest more in early-stage deals. With VCs treating early-stage deals like they have the plague, young companies had better understand and use angel financing effectively. Note that VCs will tell you they do seed and early rounds but 90% really do not. They define “early” as have traction mostly, not funding product, unless there is a serious “done it before” management team that made money for investors before. Then they will always listen.

Unfortunately, angels are nervous that follow-on financing for the round after theirs will not be there and a good investment will go bad from a lack of available capital. This same phenomenon happened in the early 1990s....

Continue Reading...
Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.