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Mistakes to Avoid When Seeking Startup Financing

Discussion in 'Financing Your Business' started by djbaxter, May 15, 2017.

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  1. djbaxter

    djbaxter Administrator Moderator Member

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    5 Mistakes to Avoid When Seeking Startup Capital
    by Jonathan Long, Entrepreneur.com
    May 12, 2017


    Read more...
     
  2. Thanks for sharing! This is worth reading.
     
    djbaxter likes this.
  3. CashFlowExpert

    CashFlowExpert Member

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    I think the 800 pound gorilla in the room is selling equity. Start-ups think they should sell equity as their only source of capital. But it's the most expensive. If a start-up has revenues, and a clear path to revenue, they should highly consider cash flow funding to bootstrap their way to higher revenue levels and valuations. Very similar to the deal Kevin O'Leary offers contestants on The Shark Tank - lump sum capital up front in exchange for a fixed royalty, for a fixed period of time. It's WAY cheaper than equity and if a start-up has the revenue growth and margins to support it, it's a no brainer.
     
    djbaxter likes this.
  4. Pauline Greening

    Pauline Greening Member

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    Hi, djbaxter!

    What a great read! Thanks for sharing. This would definitely help a lot of startups!
     
    djbaxter likes this.

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