Active Angels Ty Danco and Dharmesh Shah have posted 21 funding tips for Startups looking to leverage AngelList:
AngelList may be a game-changer, but most of the same rules are still in place. Angels still look for the same elements in a startup as always: a strong team; meaningful milestones; a differentiated product in a big potential market; capital efficiency and so on. Therefore, the excellent advice listed in OnStartups, Venture Hacks, AVC, Ask the VC, Both Sides of the Table, and the like still applies. What for now is unique to AngelList is the speed and efficiency with which they can harness an all-star network of active investors in front of a breathtakingly large, qualified stream of startups.
From the initial budget to managing overhead, creating a business from slim funds is a hands-on sink-or-swim crash course in keeping a business afloat. When it’s your money, your whole livelihood is depending on every choice you make so choices are made carefully and thoughtfully. You’ll quickly dismiss fancy office space with high rent and fashionable interiors and think about working from home for the time being. You may even have to keep your day job to pay your bills at first. You’ll want to work hard because you won’t be able to pay anyone else to help you. You’ll want to start with an idea that costs more in sweat equity and time than expensive materials or manufacturing. You’ll want to bend over backwards to provide superior customer service because it costs you nothing and it just may separate you from your more established competitors.
With the Googles of the world tracking our every move on the Internet, the wealth of information being gathered out there might seem out of reach for the rest of us. Enter Zettaset, a freshly funded Startup harnessing Hadoop for the rest of us. After raising $3 million from Draper Fisher Jurvetson and EPIC Ventures, Zettaset aims to help employees make business decisions on real data as opposed to intuition.
It’s not just about the technology anymore; it’s about the data and if you can produce more granular insights from your data,” said Brian Christian, co-founder and CEO of Zettaset.
In this video, Ankit Agarwal from Micello and Nikhil Bhat from PRS Technologies discuss Sources of Funding for Startups: What Works and What Doesn’t.
How do you plan on getting your startup funded? When is the right time? And from whom? These questions vex all founders during their finance process and are a constant source of frustration and challenge. There are various models and ideas out there, but few get creative enough to stay lean and cash comfortable. For some industries, (Enterprise & B2B) making a viable product without any funding is nearly impossible, while for some consumer startups, their go to market strategy can be as simple as developing a mobile app.
Tagline: A scientist uses Big Data to try and prove the existence of God.”
Sponsored by Mellanox, the PrintN’Fly Guide to SC13 Denver will feature interviews on Exascale, high performance networking, and the 25th anniversary of the conference as well as restaurant and bar reviews for downtown Denver. Look for it right here in early November!
Carolynn Duncan said the new fund will make investments of up to $250,000 in social impact companies.
Over at Sustainable Business Oregon, Lee van der Voo writes that a new $20 million social impact fund will focus on bringing engineers, entrepreneurs, and fund managers to bear on world problems.
Our focus is: How can we reduce suffering in the world through market-based solutions?” said Duncan, adding the fund will look for great technical and business talent on the West Coast. She added the fund will seek companies that really go after, tackle and solve a world problem, but don’t settle for lower returns in exchange.
Paul Graham writes that investors tend to fund Startups with founders who have “formidable” qualities.
The foundation of convincing investors is to seem formidable, and since this isn’t a word most people use in conversation much, I should explain what it means. A formidable person is one who seems like they’ll get what they want, regardless of whatever obstacles are in the way. Formidable is close to confident, except that someone could be confident and mistaken. Formidable is roughly justifiably confident.
In this podcast, Deepak Jeevan Kumar from VC firm General Catalyst Partners describes his efforts to help entrepreneurs with disruptive ideas in big data, cloud computing, data center infrastructure, cyber-security, and clean energy.
Deepak Jeevan Kumar has been with General Catalyst since 2010, first in Boston and later in the firm’s Palo Alto office. He specializes in incubating and launching big data and cloud computing startups. Deepak has been closely involved in General Catalyst’s investments in AltiScale, DataGravity, ParElastic, Push Computing, Sunglass.io and Virtual Instruments. Prior to joining GC, Deepak led Sun Microsystems’ high performance computing work in the Asia-Pacific region. He has the distinction of being a key architect of a few top 10 supercomputers in the world. He also had a short stint at the Yale Investments office. Deepak is a graduate of the National University of Singapore, earning a B.Eng. in Computer Engineering; the Singapore-MIT Alliance, earning a S.M. in Computer Science; and the Yale School of Management, earning an M.B.A.
Over at TechCrunch, Gregory Constine writes that the SEC has lifted the ban on general solicitation and permits startups, venture capitalists, and hedge funds to openly advertise that they’re raising money in private offerings. The rule change washes away some limitations on advertising of fundraising that have been in place for 80 years.
With General Solicitation it will be much easier for investors to find companies they are passionate about supporting,” writes Mike Norman of crowdfunding website, WeFunder, to us in an email. The new rule will hopefully open up the capital-starved startup market to the majority of investors. According to WeFunder’s website, only 3% of the US’s 8 million accredited investors are active in the tech startup space.
Constine goes on to say that the ability to advertise fundraising could spawn high-impact startups that never would have existed, and they might even spring up in areas where there are no investors within earshot — aka outside of Silicon Valley. Read the Full Story.
Over at the AVC Blog, Fred Wilson writes that one of the mistakes entrepreneurs make is moving to a business model before locking down strategy.
I remember back to the 2009 time period at Twitter. The service had most certainly found product market fit. And the team turned its attention to business model. There were all sorts of discussions of paid accounts, subscriptions, a data business, and many more ideas. At the same time, Ev Williams was articulating a strategy that had Twitter becoming the “an information network that people use to discover what they care about.” And so the strategy required getting as many sources of information on to Twitter and as many users accessing it. It was all about network size. That strategy required a business model that kept the service free for everyone and open to all comers. That led to the promoted suite business model. Twitter executed product > strategy > business model very well.