5 Things You Should Know About the 2016 IPO Window
By Brian Warmoth for BostInno
The question “Are we in a tech bubble?” set the tone for tech companies’ initial public offerings in 2015 – and the data heading into 2016 makes it clear that may be the case.
In the last five years, the amount of startups that have received seed money from venture capitalists has skyrocketed. Whose giving the most money to those startups?
Is the herd of startup unicorns going to grow and thrive in 2016 or will the herd thin out from various economic constraints?
New SEC rules impose limitations on both companies looking to raise funds through crowdsourcing and on the individuals seeking to purchase a company’s securities. The rules also provide a regulatory framework for online platforms managing crowdfunding transactions.
While venture capital’s track record with women makes you want scream with frustration, the new angel numbers will make you want to jump for joy. For nearly all metrics, the numbers hit record heights in 2014, according to the Center for Venture Research, which researches angel investments.
Slama and Family Farmed launched the Good Food Business Accelerator (GFBA), the country’s first incubator specifically for businesses that support this movement, whether it’s a food safety startup, an organic food brand, or a farm.
Even if you work every day in the world of new-venture funding, as I do, the options are confusing, and their meanings seem to change on a regular basis. I challenge any entrepreneur, for example, to define the difference between “seed-stage” and “early-stage” financing.
Sourcing capital for your startup is never easy, especially when you are pre-product completion and before the proof-of-concept the traditional venture investors are looking for. Often, the only way to get your business from a piece of paper concept to a venture-backable business is to bootstrap.
As the startup grows, it will usually require additional funding and accordingly seeks larger investments through a seed financing round with angel investors or startup incubator programs.
There are many funding options for entrepreneurs, from government grants and funds to competitions, angel investors and VCs. As a founder it is your duty to understand them all as well as the advantages and disadvantages of each.
Hague is bringing that experience to her latest project, Female Funders, a site dedicated to providing women with “approachable” resources to help them jump into angel investing. Its goal is to encourage 1,000 women to invest in their first venture this year.
Invest small amounts across a dozen or more young companies; reap outsize rewards on one or two; repeat. This is the simplified version of angel investing, the euphemistic term given to early stage investments in companies that are long on ideas and short on capital.
The report from the Journal of Business Venturing “…suggest that business angels prefer investment proposals characterized by the moderate use of positive language, moderate levels of promotion of innovation, supplication and blasting of competition, and high levels of opinion conformity.”
Raising money for your startup is never fun, but it might be the only way to get your business off the ground. It is a time-consuming, and often humbling experience.
Trying to figure out how much you should raise, how high your projections should be, and what is going to appeal to investors in general can be totally perplexing for a founder. Geektime has created an algorythm to help you figure out this critical puzzle piece.