The Downsides of Raising Money for Your Startup

by / ⠀Funding Startup Advice / May 13, 2012

Raising money should be seen as a means to accomplish ambitious goals for your company, not an accomplishment on its own. Securing investment from a prestigious venture capital firm can make headlines, but there are many downsides to raising money for an early-stage company. Here are a few: 1.) Dilution The earlier stage your company is in, the higher risk it’s perceived to have. This means lower valuation…

14 Ways to Keep Your Startups Costs Down

by / ⠀Funding Startup Advice / May 9, 2012

Q. What’s one tip you have for keeping startup costs under control in the early stage of a new company? The following answers are provided by the Young Entrepreneur Council (YEC), an invite-only nonprofit organization comprised of the world’s most promising young entrepreneurs. The YEC promotes entrepreneurship as a solution to unemployment and underemployment and provides entrepreneurs with access to tools, mentorship, and resources that support each stage of their business’s development…

6 Sources of Startup Funding and Their Pros and Cons

by / ⠀Funding / April 13, 2012

Alternative funding series brought to you by Verifico. Attempting to find financing for your startup can be confusing even discouraging, if you don’t have knowledge of your options. There are numerous routes you can take in both the Private Equity and Debt Financing worlds. It is essential to be knowledgeable about all of the options and to weigh the pros and cons of each before making a decision. Listed…

4 Most Common Myths Entrepreneurs Believe About Raising Capital

by / ⠀Funding / April 10, 2012

I work at a technology-based business incubator, and one of my roles is to help our clients raise capital.  Whether these companies are trying to raise capital through debt or equity, the entrepreneurs tend to have some pretty interesting assumptions about the process of raising capital.  I hate to be a “dream-crusher”, but I often have to break the news that the capital raising process just doesn’t work…

New Law Will Help Entrepreneurs Raise Money: Crowdfund Act

by / ⠀Funding Startup Advice / April 6, 2012

It could be easier for you to launch your next great idea. Now, thanks to a provision of the recently enacted JOBS Act authorizing “crowdfunding,” instead of trying to convince big banks and Wall Street to back your business, you will soon be able to turn to Main Street. The provision, dubbed the CROWDFUND Act, brings securities laws and regulations into the Internet age.  It’s designed to boost…

5 Ways To Finance Your Startup

by / ⠀Funding / March 30, 2012

Your business is never going to get off the ground unless you have the money to do so. Most small businesses fail simply because they do not have the money to keep going. Employee salaries, equipment and supplies are all costs that can hinder the development of your company. Fortunately, you have many options when it comes to getting the financing necessary to grow your company. Venture Capitalists…

5 Pieces of Investment Advice Entrepreneurs Should Ignore

by / ⠀Funding Startup Advice / March 28, 2012

Entrepreneurs know what it takes to get things done. When it comes to funding your ventures, making decisive management calls, and propelling projects forward – you’re motivated and effective. But because of your intensely focused approach, you often overlook some of the key investment considerations that will help you become a sustainable “career” entrepreneur. Every startup includes risk, but if you take a broad view of investment strategy,…

5 Tips for Crowdsourcing Your Next Launch

by / ⠀Funding / March 19, 2012

With the growing popularity of crowdsourcing and the government’s efforts (as they may be) with regard to regulation of crowdfunding platforms, you may be considering using crowdfunding to finance your next startup venture. I am an advocate for crowdfunding (and am co-developing a campaign to launch at the end of next month); however, as an IP lawyer, I think there are a few key points that need to…

10 Ways to Turn Your Business Into a Cash Flow Machine

by / ⠀Funding Startup Advice / February 20, 2012

To say that cash flow is important for any business is simply and understatement.  Cash is what keeps your doors open, your lenders happy, and your employees from going on strike.  Cash flow is ultimately what your investors want to see, and is what gives your business life.  Here are 10 ways that you can increase your cash flow today: Pay with credit card instead of cash –…