Category: Funding & Finances (Page 12 of 15)

Carol Wagner

By Carol Wagner at Abbott, Stringham & Lynch

Is your company hoping to close another round of financing in 2011?  In my role as a Principal at a Silicon Valley accounting firm, Abbott, Stringham & Lynch, my opinion is that venture funding is tighter now than it has ever been.  If you are counting on your venture capitalist to put in more money in 2011, don’t consider it a slam dunk.  Even when management teams were confident they could go back to the well, I have seen VCs walk away.  How can you improve your odds of renewed funding, even in a tightening financial ecosystem?  This is my list of five ways your management team can keep venture funding alive in 2011: Read More...

QUESTION:

I’ve heard it’s good to get lots of VCs interested so you can get a bidding war going.  How many VCs should I be talking to simultaneously?  Ten?  Twenty?

ANSWER: Read More...

QUESTION:

I’m talking to angels now about convertible debt financing. What are the different options for convertible debt financing that startups usually encounter?

ANSWER: Read More...

QUESTION:

I’m being offered founders shares in a startup that has seed funding. As part of the deal, these shares are being purchased with a promissory note.

What are the tax consequences for a promissory note with a nonrecourse obligation collateralized only by the purchased shares? Am I going to incur any taxes as a result of acquiring Founders shares in this manner? Also, does this affect the 83b election in any way? Read More...

QUESTION:

I have a question about angel investment. Is it more often the case that angels will invest in a company for equity or for convertible notes? Also, does this differ between institutional angels vs. individual angels?

ANSWER: Read More...

QUESTION:

It seems like a bit of voodoo to me. I just don’t understand how VCs determine an early-stage startup’s valuation?

ANSWER: Read More...

QUESTION:

My investors want to do an “inside round,” and I was wondering if an inside round is a bad thing? Does it hurt a startup’s chances of future funding? What should I look out for?

ANSWER: Read More...

QUESTION:

I’m about to sell my company, and I’m wondering what are the advantages of going with a third-party shareholder representation firm rather than just doing it myself? No one on our board seems to want to do this job, and I’m not sure if I should do it, or if we should hire someone.

ANSWER: Read More...

Pam Hedblad

by Pamela Hedblad at Abbott, Stringham & Lynch

If you are a female business owner planning to secure a bank loan in 2011, steer clear of these common mistakes or risk being turned down.  In my role as a Principal at Abbott, Stringham & Lynch, a Silicon Valley accounting firm, I serve a number of women-owned businesses.  While banks offer loans tailored to women owners, I see applicants turned down due to mistakes that could have been avoided.  The following is my list of top mistakes made by women-owned businesses when applying for a bank loan. Read More...