Welcome to Phase Two of our four-part Funding Series — all about Investor Selection!

Phase One - Structuring a Fundraise

Phase Two - Investor Selection

• Part 1 - Introduction to Startup Investors (←YOU ARE HERE 😀)

• Part 2 - How to find Startup Investors 

Phase Three - The Pitch

Phase Four - Investor Outreach

This article is an Introduction to Startup Investors. Let's dive in!

Whatever stage your business is in when you launch your fundraising efforts, you can find the investor support that you’re looking for. Now that you’ve determined the fundraise structure that matches your needs and goals, it’s all about finding the investors that make sense.

All investors are not created equal. 

They may all have capital, but the vast majority of i...

Most managers suck at being managers — not because they are bad performers, but because they don't really know what a good manager is.

In startups, this is a particular problem because, unlike established companies, tons of us become managers for the first time, not because we're entirely qualified or experienced, but because no one else was available.

As such, we're rarely told what makes a good manager, so we assume that if we get our updates, if people say nice things about us, and the business is doing well, we must be doing a good job. But the fact is, there's a massive difference between being a good manager and just being an adequate babysitter.

Babysitting is Not Managing

Most managers get by simply by being a good babysitter. They ...

How to Sell an Idea to a Company Without Them Stealing It

For many, coming up with an innovative idea leads to a desire to do something with it — and in the absence of knowing how to commercialize a great idea, many people jump to the conclusion that it can simply be sold to a big company. Then they worry that the big company will simply take their idea, and leave them in the dust. It’s a great story — it just tends to be a tale of fiction, on many levels.

Before We Answer the Question of a Company Stealing My Great Idea, Can I Sell My Idea to a Company at All?

I talk to thousands of startup founders, inventors, creatives, engineers, and other ideating and innovating types every year.

At least 100 times a year I'm asked "Ryan, I've got this gre...

Startup Equity: What Should You Ask For? 

If you’re already in the startup world, there’s a strong likelihood that you Founder equity (we’d be surprised if you didn’t!), but if you’re new to the industry, understanding how much to ask for in any given opportunity might be somewhat of a mystery to you. We are here with the help of fellow entrepreneurs in our community to share insights, guidelines, and other resources for anyone in the position to ask for (and receive) equity compensation from a company.

What is Equity Compensation?

Equity is the value of a company's stock, which you earn as a percentage of the company’s profits (or losses). Equity compensation can be thought of as an investment: when you own equity in a company, you're pu...

Continuing in Phase One of a four-part Funding Series:

Phase One - Structuring a Fundraise

• Part 1 - Startup Bootstrapping

• Part 2 - Debt as Startup Capital

• Part 3 - Equity Funding for Startups

• Part 4 - Convertible Debt  ( ←YOU ARE HERE 😀)

Phase Two - Investor Selection

Phase Three - The Pitch

Phase Four - Investor Outreach

Let's dive in!

What is convertible debt?

Convertible Debt (or a “Convertible Note”)  is often used as a method for making an equity financing investment.  Unlike regular equity financing investments, though, Convertible Debt includes terms like an Interest Rate, Maturity Date, and Valuation Cap - which we’ll explain here as to how they play a role in a Convertible note.

Convertible Debt is essentially a mash-up of debt...

Continuing in Phase One of a four-part Funding Series:

Phase One - Structuring a Fundraise

• Part 1 - Startup Bootstrapping

• Part 2 - Debt as Startup Capital

• Part 3 - Equity Funding for Startups ( ←YOU ARE HERE 😀)

• Part 4 - Convertible Debt 

Phase Two - Investor Selection

Phase Three - The Pitch

Phase Four - Investor Outreach

Let's dive in!

Pursuing equity financing means that, in exchange for the money they invest now, angel investors or venture capitalists will receive a stake in your company and its performance moving forward.

Equity financing is one of the most sought-after forms of startup funding for entrepreneurs, although certainly the least available (compared to something like a business loan or friends and family financing). Simply put – ...

Continuing in Phase One of a four-part Funding Series:

Phase One - Structuring a Fundraise

• Part 1 - Startup Bootstrapping

• Part 2 - Debt as Startup Capital ( ←YOU ARE HERE 😀)

• Part 3 - Equity Funding for Startups

• Part 4 - Convertible Debt 

Phase Two - Investor Selection

Phase Three - The Pitch

Phase Four - Investor Outreach

Let's dive in!

Debt is the most common form of outside capital for new small business owners. While angel investors and venture capitalists get all the big headlines for funding exciting companies, it’s the debt providers that are behind most of the investment dollars that go into the 99% of companies that aren’t splashed across magazine covers and business websites. SBA Loans, Personal Loans to the business owner, merchant ca...

Welcome to Phase One of a four-part Funding Series:

Phase One - Structuring a Fundraise

• Part 1 - Startup Bootstrapping ( ←YOU ARE HERE 😀)

• Part 2 - Debt as Startup Capital

• Part 3 - Equity Funding for Startups

• Part 4 - Convertible Debt 

Phase Two - Investor Selection

Phase Three - The Pitch

Phase Four - Investor Outreach

We are excited to guide you on your funding journey. Let's dive in!

Bootstrapping involves all sorts of capital — friends and family, your personal savings, crowdfunding, and of course the ever-popular "sweat equity" (getting people to work for stock in your company).

Bootstrap Meaning

Contrary to what many believe, most businesses don't get started by way of a big investment from some deep-pocketed investor. Most businesses get sta...

Founder: The person who started the company. It is someone who has an idea and creates a business around that idea. They are the “Founding Father” or "Founding Mother" of the company, as the company would have never existed without them creating it. They are often focused on vision and big picture of the start up. They are generally the business owner, or at least one of them.

CEO: The head of the company, responsible for overseeing all aspects of it and making sure everything runs smoothly. The Chief Executive Officer runs it as a business, sets the long term plans and drives towards success. They also communicate directly to the board of directors. A Professional CEO will have the distinction of having risen through the ranks, and brings ...

In a time where lots of people are announcing staff reductions left and right, it's a good time to talk about the most important aspects of dealing with the human element of reductions — Ego and Safety.

When I was a younger manager just learning how this all worked, I didn't understand the value of Ego and Safety. My "fires" turned into heated outbursts, crying, and grandstanding. I couldn't figure out what was going on and assumed these blowups were tied to the people I was letting go.

They weren't — it was entirely my fault. Even though I tried to be kind, I didn't appreciate that letting people go isn't about the transaction — it's about the person. How we manage that relationship is the transaction, and it always maps back to how we vie...