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In raising funding, the founder should avoid out-of-market valuations. There may be investors who become so excited about the deal that they offer a valuation that is above the current market. While this may appear to be a great opportunity to get a better price, the founder should avoid it. ...

In raising funding, a founder starts with their own network. When that runs out, he looks for additional sources. There are many investor lists available through online resources. Here’s how to use an investor list in a fundraise. Check your connections to the investor through your network, including social media....

In raising funding, the bar goes up with each round. The revenue must be higher, and milestones must be achieved. In raising funding, consider how to build a steady growth rate into the business. Look to avoid those businesses that have strong seasons and cycles throughout the year. Rework the...

Investors see a tremendous amount of dealflow. For some, it can become wearisome to see the same mistakes repeated. It’s important for the investor to keep a good relationship with the founder. This means avoiding arrogant or condescending feedback to the startup. It also includes treating the startup founder with...

In raising funding, the founder sets a target.  Oftentimes, the target is a rather large number. It’s best to break the larger raise into smaller rounds. This lets you run a series of smaller campaigns inside the larger fundraise. One of the benefits of breaking the raise into smaller rounds...

Startup investors should act as role models for startup founders. Startup founders are often new to the startup world and so look to others with experience for how best to play the game. Avoid these sins as a startup investor. Not being genuine. Investors want startups to tell it straight,...

Bringing on a cofounder has many advantages. There are also disadvantages. Here’s a list of challenges with partnerships: Decision making. Partners bring the challenge of making decisions. It’s best to decide who has the final say in all decisions to avoid a stalemate. Liability. Both partners are liable for the...

Launching a startup is a challenging endeavor. Having a co-founder can bring many benefits as follows: Share the responsibility of launching and running the business. One can hire administrative people and outsource functions, but there needs to be management over each of those areas. Bring more skills to the business. ...

In raising funding, the startup founder’s job is to motivate the investor to engage in the deal. Investors are often motivated by what they see other investors do. This is called the herd effect. This is when people copy what others are doing. Here are some key tips on how...

In the early stages of a company, fundraisers should focus on the minimum amount, not the maximum. The valuation is low, and so the founders encounter greater dilution. The majority of the fundraise should be done later when the valuation has increased. Each round will cost the founder 25%...