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Seed Capital Assistance vs. Angel Investors: What’s the difference?
A new business needs money to start. But how much funding you need depends on what the start-up company is going to do. Whether it is to help develop a prototype for a new product or build a new software program, entrepreneurs need capital to start their venture....
Glossary of Terms
Execution Risk The risk that a team, a leader, or a company cannot execute on their promise or their ideas. Investors generally prefer a high-quality team with a low-quality idea over a low-quality idea with a high-quality team. This is because there is so much risk...
Can a Term Sheet be Legally Binding?
As a founder, having an investor is a coveted opportunity. At some point in your investor search, a term sheet may be used. Although a term sheet is a big step in getting funded, the term sheet itself may not be the final document of agreement. While a term sheet is...
Angel Investors vs. Venture Capitalists: Who is Right For My Business?
Many people get the idea to start their own business. However, these same people are unlikely to have sufficient cash on hand to launch the business. From real estate to marketing, employee wages to insurance, running a business requires a significant investment...
What is an angel investor?
An angel investor is someone that has a high net worth and an entrepreneurial background. They typically seek a higher return on the money they invest. Because they usually invest their own money in the venture, they are focused on helping the entrepreneur become...
How to Justify Startup Valuation: 12 Tips and Tricks
Valuing a startup is more of an art than a science. There are no hard and fast rules and there are a lot of variables, tangible and intangible that go into valuing a startup. The thing to keep in mind is that an early stage startup valuation is a negotiation. The...
How Big are Seed Rounds?
Every successful business owner will agree that starting is the difficult part. Even with the best idea and team backing you up, it may seem like the odds are stacked against you. For most startups, the primary challenge is capital. Without funds, that brilliant idea...
Angel Investor vs. Private Equity: What’s the Difference
Angel investors and private equity are equally effective in investing funds into companies. They share the same overall goal of investing in a company with the hope of the business becoming successful, but their methods for doing this are very different. You should...
Angel Investors vs. Crowdfunding: What’s Right For Your Idea?
With multiple ways to fund your startup, the right choice will be dependent on your business plans and goals. Two common sources of funding are angel investors and crowdfunding. While the former relies on individuals or small groups in exchange for equity, the latter...
Do Angel Investors Check Your Credit? Do They Care?
New business owners and entrepreneurs may have doubts about their credit when taking risks with a startup. Yet angel investors are nearby to build confidence, relying on entrepreneurial instincts. Turning to angel investors is not about borrowing money on credit. When...