Ask yourself: How confident are you in your company’s financial position? How much knowledge do you have about the transactions and activity that flow in and out of your books? Not to mention, how much faith do you have in the accuracy of your financial picture?
Seed investment on your mind? Every entrepreneur should understand his or her options.
Our financial experts have put together this comparison to help startup founders decide between simple agreement for future equity, or SAFE, and convertible notes.
Whether you’re bootstrapping your business, launching through joining an incubator, or you intend to seek help from a VC or angel investor, it’s not an easy task to raise money for a startup in any industry.
From startup funds to venture capital firms to influential individuals, inDinero’s investors are a diverse group of tech industry innovators and change-makers. But they didn’t come flocking to our company overnight.
What makes a good investor? And how should you go about finding someone who possesses the right qualities?
A pretty significant number of entrepreneurs who pursue venture capital believe the answer to these questions is simple: follow the money. In theory, it makes sense: What better indicator could there be of an investor’s success than their wealth? Isn’t that what investment is all about?
Not really—at least not for you, the business owner on the other side of the deal.
Pop quiz! Do you know if your business is on track to hit its financial goals for the year?
Sorry to put you on the spot like that and don’t let it make you sweat. Truth be told, an estimated 90 percent of small businesses are unable to produce dependable financial statements when prompted. And it’s probably safe to assume that even if they could access accurate finances, most small teams wouldn’t know how to turn those numbers into business insights to put into action.
Early in his company’s history, entrepreneur Greg Vetter achieved a seemingly impossible feat: he convinced Whole Foods to distribute his family’s line of salad dressings on a national level.
Although the greenlight from Whole Foods provided an incredible opportunity, Greg knew it meant he needed capital—fast. So, he liquidated his and his wife’s 401(k)s, maxed out his credit cards, and even used his parents’ home as collateral to secure a bank loan. Then, he raised an additional $1 million from about 30 friends and family members.
We understand that the search for a small business loan can be both frustrating and confusing. You’ve likely been inundated with lenders using terms like annual percentage rate, interest rate, and factor rate to explain why their loan product is better than the next. But the truth is, what’s best for one company may not be best for yours.
In the broadest terms imaginable, there are two steps to launching a startup:
- Come up with an idea.
- Bring it to life.
So, if you have a concept for your business—congratulations! You’re halfway there. All that’s left to do is make it a reality.
These days, venture capital is flowing like Niagra Falls: would you believe that over $98 billion in funds were raised by startups in 2015. However, just because money is being invested doesn’t mean it’s easy to get. If you’re an entrepreneur running an early stage business, you may be taken aback by an investor that’s less than thrilled about your company. In fact, they might flat-out drop you like a hot potato.
If that sounds like something you’re going through now, instead of throwing in the towel or throwing punches, here’s how we recommend you deal.