There are a lot of options when it comes to startup funding. And sometimes those different options can overlap — or at least seem to. That’s the case with private equity and venture capital.

What’s the difference between venture capital and private equity?

The biggest differences, traditionally, between VC and private equity are the stage of the company they invest in and the type of growth they’re looking for. Venture capital tends to go for early stage, higher risk companies with potential for “hockey stick” growth, which is when a company goes from nothing to everything, super fast. Private equity, on the other hand, is interested in companies that have already established themselves, but need more capital in order to thrive.

Another bi...

What is venture capital?

Venture capital is financing that’s invested in startups and small businesses that are usually high risk, but also have the potential for exponential growth.

The goal of a venture capital investment is a very high return for the venture capital firm, usually in the form of an acquisition of the startup or an IPO.

Why would you want to use venture capital?

Venture capital is a great option for startups that are looking to scale big — and quickly. Because the investments are fairly large, your startup has to be prepared to take that money and grow.

Advantages of working with venture capitalist firms

The biggest advantage of working with venture capital firms is that if your startup goes under — as most do — you’re no...

Founders are rarely prepared for how to handle a legit crisis, like when the whole world turns upside down overnight.

I lived through 9/11 with 700 employees, raised multiple funding rounds in the middle of the 2007 Financial Crisis, and just for "funsies" oversaw the overnight shutdown of a startup with 450 people.

So yeah, I have some experience here.

What I've learned is when crisis hits, a solid approach to communication is one of the single most effective tools we can employ.

Cut the Bullshit

In times of crisis, no one wants to hear the sugar-coated version of where things stand.

"Hey Team, I know half of you have turned into flesh-eating Zombies, but the good news is there's way more La Croix for those of you who have survived!"

No...

When I was just starting my startup career and had a little bit of success, I got the best advice ever from a friend of mine whose family had started a $50 billion company. He said:

"Never tell anyone how much money you have. Only two things will happen — they will either try to take it from you or size you up by it — either way, you lose."

I give that advice to every newly minted exited Founder I meet, and at this point, I've given that advice so many times I figured it was worth a detailed explanation. It actually doesn't matter how much you have (or don't have), the advice is just as valuable.

The Money Matters

Like it or not, we are judged by our money. If we have it, people judge us because they don't have it, and if we don't have it, ...

Who are angel investors?

Angel investors are typically high net worth individuals who invest very early into the formation of a new startup company, usually in exchange for convertible debt or equity. Angel investors serve as a critical bridge between the very early stages of a startup and financing they’ll get later on. That’s because angels are much more likely than other types of investors to take on high risk investments without much proof of return. In other words, they’re betting on you and your idea — not your metrics.

Angel investors tend to invest in companies that are in industries they know a lot about. So, for example, if an angel investor made a lot of money in the real estate industry, you can imagine they would be most comfor...

Startup Founders are not entitled to success, yet we sure act like it.

When we're sitting in a room full of Founders or pouring through social media, we're inclined to think everyone is "killing it" but us. We hear of these meteoric rises, huge funding rounds, and big exits and invariably wonder when all that goodness will happen to us.

What we form is an "entitlement to success." We believe that because we see so much of it happening elsewhere, by virtue of that, it's only a matter of time until it happens to us.

What we miss when creating that entitlement is just how flawed the foundation of that premise is and what a house of cards we create with our own expectations.

"I Deserve to be Funded"

In the early days of our formation, when we'r...

The conventional wisdom in the startup community these days is that to create a successful startup, you need to move at breakneck speed in everything you do.

And, to facilitate this, you should consume as much money as you can get your hands on along the way to make sure you’re removing all obstacles from getting to market. The perception is that if you move too slowly at the beginning, you’ll miss the market and, even worse, you won’t get funding.

But, is this correct?

While we completely support the idea that getting a great product to market as quickly as possible is a cornerstone of startup success, we just don’t buy that frenetic speed is the best way to do it. It’s not what has worked for us, nor for any of the successful startups we’...

One of the most common questions we get asked is, "Should I raise capital for my business?" _What they’re really asking is, “Can you tell me how to raise money and where to find it?”_

And our stock answer is simply "No".

That tends to mess with people — because they typically aren’t expecting pushback. But the reality is that there are actually very few reasons that a startup absolutely has to raise capital. Every startup could use it. But does every startup absolutely have to raise?

Nope.

Having answered this question about a billion times, it seemed like the right time to list what the decision tree for startup Founders should be when determining they must raise capital so we can distinguish the difference between "I need it" and "I have...

Can a startup apply for a small business loan? Are you sure? Usually when startup founders think about funding, we think about venture capital or accelerator programs. That’s because those funding sources offer potentially big payouts, oftentimes with no obligation to pay back the money if the startup fails.

But, there’s another source of funding that’s more traditional — and potentially riskier: the small business loan.

Small business loans are a more traditional way of getting financing, which means they may be easier for some startups to get than venture capital, which can be a long and arduous process.

They’re a great option for startups that already have some momentum and — even better — some income coming in. That’s because while ven...

Sallie Krawcheck is one of my favorite entrepreneurs I’ve met in 2017, after many years following her career as one of the most senior women on Wall Street. A 2002 Fortune Magazine cover put her face as the hope of trust on Wall Street with a headline: “The Last Honest Analyst.”

Indeed, she was fired in 2008 from Citi because she wanted to bank to reimburse clients for bad investments that were the bank’s fault. Or as she put it in an on stage interview in 2016, “I was fired for being a woman,” because women are more focused on relationships and long-term outcomes than men on Wall Street.

What do you do when you reach the pinnacle of your career– farther than almost any other woman in Wall Street has climbed– and then get fired for doing th...