Past Issues

Consider Convertible Note Financing

Pre-Series A businesses have choices for raising capital, but not many real options. When valuation is a concern and quicker funds are needed, convertible note financing may work best. With convertible notes, the valuation dilemma is delayed until the note is retired or converted into equity. For a pre-Series A business, the valuation is probably going to be low and difficult to quantify anyway. Additionally, convertible note financing is usually quicker and cheaper to accomplish. Debt financing is not a panacea, however. It may be more expensive than equity financing if your next round valuation fails to substantially exceed the note’s discount rate. More about convertible notes can be found at Entrepreneur Briefcase: Seed Stage Financing with Convertible Debt

Do you Really Have A Competitive Advantage

Being human, we can all become excited about new technology that shows great commercial breakthrough promise. Probably even Steven Jobs became excited when he first realized the commercial prospects for his Apple computer at some point. Excitement notwithstanding, entrepreneurs need to be mindful that more advanced technologies can exist in stages earlier than their technology’s development. These technologies may be on a faster development track due to piqued investor interest and streamlined commercial pathways. Commercialized or near-commercialized products are not always the only competition that your product may encounter. More about this topic can be found at Why Durable Competitive Advantage Matters

Use An Executive Summary

Private investment is becoming more difficult to obtain. Investors are viewing more deals than in the past. Consider using a 4-6 page executive summary, rather than a 40-page business plan to introduce your opportunity. It will save time, and enable you to reach more potential investors. Consider using the format by UC Berkeley at Suggested Executive Summary Format