Lee Bagshaw’s Post

[NZ] If you are considering raising money for your startup, there are two main ways you can do it: either by issuing shares (equity) in exchange for money, or by using convertible notes. This Kindrik Partners guide explains how each approach works and the pros & cons https://lnkd.in/gWkGjxa

#LetsTalkVC This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here. https://lnkd.in/g4KaJyEt #SVC #Funding #VentureCapital #WeeklyRoundUp

CredFlow founder Kunal Aggarwal achieved a major milestone by securing $3.7 million in pre-Series B funding from Inflexor Ventures. This strategic investment brings CredFlow’s total funding to over $13 million, following $9.2 million raised in earlier rounds. Read about how CredFlow is revolutionizing SME's finances: https://lnkd.in/ebv7N7m3 #CredFlow #Funding #Investment #EntrepreneurshipStudio

These are the founder traits most likely to secure funding. 🚀 With so many startups vying for investment, it can feel like something of a lottery as to which founding teams secure funding.  It’s a little bit about the product and strategy, it’s a lot about networking and who you know, but, beyond that, are there particular traits that make a founding team more likely to succeed at fundraising?  ➡️ https://lnkd.in/eE_4DsVY 🔗 #funding #investment #networking #traits #fundraising #UKtech

Wherever a #founder’s #fundraising exploration journey takes them, it’s helpful to start with two key questions: 1. How much capital do I need? – #Founders should seek only to #fundraise as much as they truly #need and only when they cannot #finance their #growth with the resources they have available. This means ensuring that there are #predefined activities (e.g., a new hire, purchasing inputs) tied to the full amount of #funding raised. Being #intentional about only #fundraising as much as is truly necessary will help prevent founders from #spending too much or giving up too much ownership on funding. It’s important to view #fundraising as an #activity and a #tool and not as a goal in and of itself. 2. What type of capital do I need? – A #company’s #fundingneeds typically fall into one of four categories: i. capital needed for developing a proof of concept, ii. growth capital, iii. working capital, and iv. capital needed for acquiring assets. #Growthcapital refers to #cashspent on activities like #hiring people, investing in #newproduct development, putting systems into place, #marketing, or anything that helps you build towards the future. #Workingcapital refers to cash spent in the short term to buy #inputs, stock, or materials required for your product or service. #Funding options are generally suitable for one, multiple, or all these uses. For example, #equity is most #suitable for developing a #proofofconcept, growth capital, or purchasing assets, whereas supply chain financing should only be used to cover working capital needs. Identifying what funding is needed for – and understanding what category that need falls under – will help founders seek the most appropriate funding option to avoid spending too much on funding (e.g., covering working capital needs with equity instead of with a less expensive funding option like revenue-based loans). Learn more about which funding options are most suitable for each funding need in Capital Explorer. https://lnkd.in/evKFsh-R

When entrepreneurs seek investors for their venture, they rarely think about the transaction from the investor's perspective: if funders can't see a path to get their money out with a return that is worth the risk premium, they won't put their money in. Founders must resist what seems to be the easy fix by raising outside capital as the fundraising environment becomes ever more challenging. "Bootstrapping" is not a dirty word — it's actually the best strategy to thrive in these unpredictable times. #momentumscaling #vc #funding https://lnkd.in/eJgQUExN

Start-ups should not raise any funding. The money would be better invested in a Vanguard index tracker. So why do so many investors keep backing them? Here are 10 reasons 👇 1. They feel the pain of the founder: they have first-hand experience of the problem being addressed; 2. They feel the pain of being a founder: they have first-hand experience of being supported as a founder and want to pay it forward; 3. They like early-stage tax relief: after working hard for their money they want to keep more of it wherever possible (can't blame 'em). 4. They know a good operator when they see one: after developing skills in business they appreciate when someone has the potential to go far. 5. It creates fear & greed: being human, they just can't stop themselves from the fear of missing out or the hope of a massive payout; 6. It brings prestige: anyone can invest in a NASDAQ tracker, but not everyone can say they were the first money into one of its constituents; 7. It's a social sport: there is nothing investors like best than spreading the risk by joining as part of a syndicate with their best mates; 8. It's something to do: especially for the near-retired with time on their hands who enjoy seeing their money do the work for a change; 9. It's educational: most investors are generalists, and will probably learn something they didn't know; 10: It's fun!: investors just wanna have fun. Start-ups shouldn't get investment. But they still do because they meet investors who feel their pain, like tax relief and backing strong founders, succumb to greed and fear, enjoy prestige, socialising, staying active, learning and having fun. Will your start-up give them what they want? #startups #fundraising

💡We’re excited to launch our new monthly series: VC Terms Decoded! Your guide to understanding the language of venture capital! The first topic: "dilutive” vs “non-dilutive" funding.  Non-dilutive funding: funding without issuing new shares to investors, helping to retain control and dividends. This funding can be in the form of grants, crowdfunding and loans from family. Dilutive funding: Issuing new shares to investors in exchange for funding. Companies often combine both methods to access capital and boost credibility. “Friends & Family” funding with Fifth Star Funds creates a dilutive avenue for black-owned businesses to procure funding - especially if their personal networks are unable to crowdfund. FSF goal is making funding more accessible for new entrepreneurs.  Share in the comments what topic you’d like us to cover next month! #Funding101 #FifthStarFunds #ClosetheWealthGap

Understanding the challenges in valuing startup ventures is crucial. From unpredictable cash flows to limited tangible assets, accurate valuation requires careful consideration of future potential and investment opportunities. Learn more! Read the complete blog - https://lnkd.in/gaEfnfHs Get Fundraising Advisory from industry experts - https://lnkd.in/gCVPDjDM #StartupValuation #startup #valuation #businessvaluation #business #smallbusiness #startupfunding #fundraising #funding #fundtq #valuingstartup