Tuesday, 23 February 2010

Understanding the Startup Financing Process

The 3F's, Seed Capital, Angel Capital, Venture Capital, Series A-C, IPO's, Public Market

Friends, Family, Fools & Founders
they're the only ones willing to donate some money to your cause, friends and family, cause they care, and fools, cause well only a fool would give someone they don't know cash.

Seed Money
these are typically people who want to flip their equity within 6 months, quick in grow the company rapidly, and quick out strategy.

The BA's (Business Angels)
Those who invest on the basis of 30 x expected ROI.

Venture Capitalist
Comes in, typically Series A, then Series B for early stage, C for early late stage, etc... etc...

IPO, or Initial Public Offering
Meaning that the shares of your company can be traded on stock markets such as NASDAQ, DAX, etc... but when you get here, you'll have a Morgan Stanley underwriting your deal, you may be going through a M or A, and all sorts of crazy things can happen

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