A lot of people who approach angel investors are – or think they are – at a point that they’ve got most of their problems solved and they want a bunch of money to accelerate their plans. I want to clarify for my social followers though –
Price-to-earnings (P/E) ratio – what is it and why care?
P/E ratios are a good quick gauge of the value of an investment. It is limited, and there is a ton of additional information to consider when making an investment, but it is a nice quick-view metric. The P/E ratio of a stock is the stock’s price divided by the earnings per share. So if […]
Finance, Investing, stockConvertible Notes: Is the Reward Worth the Risk?
Here in 2014 convertible notes seem to be all the rage in the startup funding arena. The commonly given reasons for using notes versus a straight equity funding arrangement are: faster to close, cheaper to close, and it pushes back the valuation discussion. There are other advantages to notes but these are the most common reasons […]
angel, Business, Funding, Fundraising, Investing, StartupIs Your Startup Revolutionary or Evolutionary?
Is your startup idea revolutionary or evolutionary? An evolutionary startup is one that is looking to enter an existing market, but the intent is to position the product or solution in a way that is “better, faster, cheaper” (or some combination of these) than the existing solution that exist. Alternately, a revolutionary startup is one that is looking […]
Angels, Business, Founder, Investing, Startup, VCStartups: Know Your Numbers
Sure, we all know – when you are a founder of a start-up putting together financial projections, the numbers are largely guesstimates. Young ventures don’t have the business history needed to properly predict, budget, and forecast revenue and expense numbers. That doesn’t mean the founder(s) shouldn’t go through the exercise though.
Business, Finance, Investing, startups