SKMurphy September 2015 Newsletter
This blog post summarizes our September newsletter, you can subscribe to the monthly SKMurphy newsletter using the form at the right
When and How to Seek Investment
This month’s issue addresses when and how to make the transition from bootstrapping to seek investment. I am not against looking for investment when you have a business that both merits and needs investment to grow. Where entrepreneurs often waste time is looking for early validation from investors instead of prospects A second mistake they make is not understanding the return on investment expectations the investor has: at the end of the day a bona fide investor is not interested in control but very interested in how, when, and how much you pay them back.
Whenever you are planning to take an investment from someone the calculation you have to make–and that they should agree with–is will you be able to satisfy their return on investment requirements.
If you have bootstrapped your startup to the point where you have a business that both merits and would benefit from outside investment then you may need to consider seeking investment. Here are some common formats we have seen for an investor presentation.
Many entrepreneurs planning their first software startup get stuck on funding and ownership issues. Here are some simple rules of thumb that may help you reframe an issue:
Matt Wensing has been bootstrapping Stormpulse since September of 2004 (“What Have I Been Doing?!“) He offers some short thoughts on what he has learned since raising capital and I wanted to highlight four: