Archive for the 'Funding Sources' Category

Limiting the Number of Shareholders in Private Companies

January 19 2012 No Commented

The U.S. Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders.   The assumption has been that companies with 500 investors are quasi-public anyway, and for disclosure and other reasons should be forced to go public when the shareholder number approaches this limit. Since the IPO market […]

Trends in Seed Stage Funding for Entrepreneurs

December 22 2011 No Commented

I’ve recently taken a look at seed stage funding by venture capitalists (VCs) and angel investors over the past five years.  For VCs, I chose to look at all seed stage VC deals (from MoneyTree©) as well as those in five of the most active regions in the country.  Note that I merged the two […]

The Funding Gap

December 22 2011 No Commented

Here is some data on capital sources for entrepreneurs and the investment The Funding Gap – that I recently posted on Gust.com.  You will find the total available capital from friends and family, government sources, angel investors, super angels and venture capital.  You will also find new graphic showing round size by the number of […]

Crowd Funding and Job Creation

December 13 2011 No Commented

There seem to be two motivations behind the current buoyant enthusiasm in Congress over crowd funding for entrepreneurs:  (1) the democratization of funding for startup companies (no longer requiring such investors be wealthy) and (2) the job creation that is expected to result from creating more startup ventures.  In my earlier post, Crowd Funding – […]

Startup Capital: Feast or Famine?

December 11 2011 2 Commented

For years there has been a pervasive opinion across the entrepreneurial landscape that the US has a shortage of capital required to startup and grow new ventures.  It is suggested that companies cannot find the cash necessary to start new and exciting ventures.  Furthermore during this economic downturn, we’ve heard a crescendo of voices lamenting […]

Crowd Funding – A Critique for Entrepreneurs and Investors

November 25 2011 12 Commented

Crowd funding enables entrepreneurs to raise money in relatively small amounts from large numbers of interested investors.  In the sum, substantial amounts of money (as much as a million dollars) can be raised for each startup company.  Recently, entrepreneurs in many countries have been soliciting investment through “crowd funding” websites designed specifically for fundraising purposes.  […]

Interview by the Oklahoman

June 11 2011 No Commented

Q: What is the No. 1 milestone that new entrepreneurs must accomplish to become successful? A: Though no single issue is paramount, acquiring enough cash and utilizing that cash to achieve positive cash flow from revenues is a metric that we investors watch carefully. Read more: http://newsok.com/oklahoma-businesses-have-potential-for-raising-capital-for-startups-i2e-entrepreneur-in-residence-says/article/3575801#ixzz1Oyz1mGfC

Probability of Success in Raising Angel Capital

June 7 2011 3 Commented

According to J. Sohl, the Center for Venture Research, about 20,000 seed/startup stage entrepreneurs are successful in raising money from angel investors each year in the US.  An additional 30,000 later-stage entrepreneurs raise angel money annually, many of whom raised seed/startup capital from angels earlier.  Angels seem to be making more follow-on investments in portfolio […]

Signing Up for the new Financing A High-Impact Venture (in Montana) Workshop

May 2 2011 No Commented

A week or so ago, I posted on a new workshop available for entrepreneurs in Montana – sponsored by Montana State Workforce Investment Board and the Governor’s Office of Economic Development (see Financing Startups – A New Workshop for Entrepreneurs).   Here is some additional information on this workshop: Kathy McLane from Glendive participated via two-way […]

Financing Startups – A New Workshop for Entrepreneurs

April 22 2011 one Commented

For the past few months, Liz Marchi and I have been developing a new ½-day workshop for entrepreneurs:  Financing a High-Impact Venture (in Montana).  This new seminar was beta tested in Kalispell at Flathead Valley Community College yesterday morning for 22 enthusiastic participants.  Topics covered included capital sources for entrepreneurs, debt versus equity, exits, business […]