Archive for January, 2011

Startup Valuations: The Scorecard Method

January 31 2011 2 Commented

Wise entrepreneurs and investors use multiple methodologies to establish the appropriate pre-money valuation for pre-revenue startup companies, because no single method is particularly effective at this early stage.  Valuation at the time of investment, of course, is critical in determining the percentage of ownership that investors purchase from entrepreneurs in a round of investment.   I […]

Debt or Equity: Does It Make Any Difference?

January 28 2011 No Commented

When entrepreneurs raise money to start and grow their businesses, this capital generally comes in three flavors: Grants, Debt and Equity. It is important that entrepreneurs understand each, especially the cost of these capital source alternatives.  Read today’s column in the Flathead Beacon here.

The Elephant in the Room

January 25 2011 one Commented

In a recent discussion in Vancouver, Basil Peters and I discussed the fact that many angels are not making money on their portfolio of startup ventures.  Then, our friend Frank Peters, host of The Frank Peters Show, invited Basil, Mark Skaist and me to discuss this topic on his show.  This led to a discussion […]

STARTUP – by Elizabeth Edwards

January 23 2011 No Commented

I received an email solicitation encouraging me to purchase a new book on starting companies by Elizabeth Edwards about two weeks ago.  Now…without explaining further, you can guess what I do with such solicitation.  That’s right…delete!  But, for some reason, I read the email and promptly both bought and read the book.  Am I glad […]

The Funding Gap

January 20 2011 2 Commented

Startup entrepreneurs need to be aware of The Funding Gap between angel investors and venture capitalists.  It is quite well-known that startup entrepreneurs first use their own capital and then seek funds from friends and family in the process of productizing their innovation.  Only when customers have been identified who have at least beta tested […]

Interview by Frank Peters

January 13 2011 No Commented

I was recently interviewed on The Frank Peters Show  We discussed my five-month visit to New Zealand during the first half of 2010 and the new workshop I developed since returning entitled Valuation of Early Stage Companies.  Frank drills down on many valuation issues important to entrepreneurs and investors alike. Here is Frank’s lead to […]

Entrepreneurship: Old Age and Treachery Will Overcome Youth and Skill

January 8 2011 No Commented

Last September, Peter Thiel made an audacious offer to student entrepreneurs less than 20 years of age:  $100,000 each to 20 entrepreneurs to drop out of college to pursue high tech entrepreneurial ventures.  Personally, I think this is a poor message to university students.  Sure…Bill Gates, Michael Dell and Mark Zuckerberg did it and were […]