or a founder, the first few million dollars you raise are likely to be the messiest in the history of your company. For some they come in a single round, meant to last you 12, 18, 24 months – a straight trajectory towards the milestones you’ll use to raise a Series A.
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.
Who Makes it onto the List of the Top 20 Seed Accelerator Programs?
It might not be who you think….
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.
Accelerators provide seed investment, mentorship, and the connections necessary for success. By the end of the program, companies that go through our accelerator for instance have found more value in the experience than the $50,000 we invested in them.
Some fast-growing Boston tech companies are choosing to forgo chasing after venture capital. For those companies, doing so would simply distract from focusing on building the best product possible—and ultimately, they strive to achieve financial sustainability by way of their customers alone.
Bill Reichert has his top 10 rules list for web companies wanting seed money: he co-founded his venture company with Guy Kawasaki. This list outlines the things Web 2.0 start-ups should be doing when pitching for venture capital from companies like Garage Ventures – in other words it’s also what venture capital companies (or angel investors) are looking for in a start-up.