How does investing in startups work? 🤷 The Friends and Family Round 👪
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- čas přidán 21. 03. 2023
- How does investing in startups work? 🤷 The Friends and Family Round 👪
There’s a lot to learn before you invest in an early-stage company.
This video explains all the important details, terms, risks, and rewards.
Investing in a founder’s startup is the best way to help their business succeed.
They need funding to prove out their idea enough to interest outside angel and venture capital investors. You can make that dream come true, but you should understand how these investments work and why they are very different than conventional investments.
Lance Cottrell has been an active startup advisor and startup mentor for over a decade.
He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets.
He works with many companies in accelerators like Y Combinator and Founder Institute.
He provides help with startup funding including raising venture capital and angel investment.
He can help you achieve liquidity for your company at a high valuation.
Feel the Boot is a startup vlog of tips and advice for early-stage founders. - Jak na to + styl
great video, super helpful, thanks! btw, subscribed
Awesome, thank you!
Hello there, thank you for making these videos very easy to understand. So if I wanted to give someone stock that can only happen if the company goes public? Well I am a niche sneaker brand, and so for example I guess Nike went public at some point ? I guess that should be my goal, but that is going to reduce the number of investors that would be interested since I don't plan to have an exit correct?
Funny I'm sitting here talking about an exit and I haven't even sold a shoelace yet lol, but seriously if my brand gets off the ground it will be a top 5 sneaker brand, it's a huge mountain to climb but the niche is like gold. I don't know what type of companies you get involved in but would love to give you my elevator pitch and see what you think.
If you are a C corporation, you can give out stock at any point. Until you go public, it is restricted, so they won't be able to sell it on the public markets. I suggest using SAFEs or Convertible Notes, rather than stock, because they are much simpler.
I would keep an open mind about exits. Going public is fantastic, but you might also choose to sell to one of the big players after several years of success.
If you become successful but choose not to do either of those things, you can negotiate with your shareholders to buy them out at some attractive valuation.
@FeeltheBoot ok gotcha and that makes sense, thanks for taking the time to explain things so clearly I appreciate it.
My pleasure!
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