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It’s easy to get lost in the Silicon Valley sauce. I know because I’ve been there. Startups are sexy and we’re surrounded by news of big rounds of funding, the newest cohorts accepted in to prestigious accelerators (like Y Combinator) and essays from legendary investment firms such as a16z.

The examples are endless.

The VC Way

They’ve all earned their names for a reason and produced excellent learning resources for aspiring founders.

But, there’s one caveat, often overlooked by new founders:
They create fantastic resources, tailored toward founders headed down the venture capital (VC) route.

This might seem like small fries— But, not being aware of this caveat can fundamentally (and subconsciously) shift an entrepreneurs evaluation of wh...

Boris Wertz is the founder of VersionOne Ventures, an early-stage fund that has made over 35 investments in consumer Internet, SaaS, and mobile companies across North America. Clarity sat down with Boris to discuss how to find funding sources, how (and how much) to ask, and crafting the perfect pitch.

In order to raise money, most startups go through the same process: create a pitch deck, and then pitch it to investors.There are many types of investors, such as institutional investors who invest other people’s money, angel investors who invest their own money, and venture capitalists who privately or publicly provide total capital for a new venture.

Where can you find funding?
First, you should think about what the right funding is. Everyon...

Marc Andreessen isn’t just an industry legend, because he helped the modern Web browser. He’s not just an industry legend because he’s one the only folks who’ve co-founded two companies that exited for north of $1 billion each. Nor is he renowned simply for throwing a grenade into the cozy way venture capital had worked for decades, when he co-founded Andreessen Horowitz in 2009.

You get where I’m going with this… Andreessen might be “famous” for you for different reasons, depending on how old you are or when you first started paying attention to startups.

Plenty of conferences and magazines feature interviews with Andreessen where he talks about the future. What’s difficult is getting a man so excited about the future to talk about the pas...

Jim Hendrickson has successfully started 4 companies and he has bought and sold 7 more, consistently building them to the double digits in sales and returns. He sat down with us last week during a Clarity Live session and gave us his best advice on why it is important to build an exit strategy. Below are some of his tips on the art of successful exits:

Exit strategies improve the odds of success for a business. Whether it be liquidation, selling the business, an acquisition, or an IPO, it is important to think about your exit ahead of time, and doing so will lead to improvements in many other areas of your company.

Management

Exit strategies can help conquer and shine a light on bad management situations. Understanding how you want to exit ...

Today isn’t just about our new site launch – it’s about why we launched it. For those of you that have been following our story for the past few years, you know that we’ve grown our startup platform quite a bit, helping over a million startups get from idea to launch.

Most of what you’ve seen has focused on our products, whether it’s Fundable for raising capital, Clarity.fm for finding mentors, or Launchrock for acquiring customers.

But behind the scenes, we’ve been working on something far bigger: our community.

Bringing the startup community together has always been our greatest goal. This site launch has given us the opportunity to make it happen, and offer our vision for a new voice and a fresh narrative to the startup journey.

More imp...

Continuing in Phase One of a four-part Funding Series:

Phase One - Structuring a Fundraise

• Part 1 - Startup Bootstrapping

• Part 2 - Debt as Startup Capital

• Part 3 - Equity Funding for Startups

• Part 4 - Convertible Debt ( ←YOU ARE HERE 😀)

Phase Two - Investor Selection

Phase Three - The Pitch

Phase Four - Investor Outreach

Let's dive in!

What is convertible debt?

Convertible Debt (or a “Convertible Note”) is often used as a method for making an equity financing investment. Unlike regular equity financing investments, though, Convertible Debt includes terms like an Interest Rate, Maturity Date, and Valuation Cap - which we’ll explain here as to how they play a role in a Convertible note.

Convertible Debt is essentially a mash-up of debt financing and eq...

You’re a startup founder. An idea machine. But it doesn’t matter how many ideas you have; those are a dime a dozen. What matters more is how you’re going to turn ideas into reality. So there’s a fork in the road: Pursue your side project (e.g. your passion), or keep your full-time job?

Delaying your side project could save time and money. Then again, going through with it could add color to your life and massive value to your company.

Fortunately, it doesn’t have to be an either/or scenario. You can make room for passion projects without ditching your post. Almost all the companies I’m running today started as side projects.

A few years ago, I was working as a hedge fund manager and a CTO of a Hollywood church. I was doing a little side con...

Welcome to Phase Three of a four-part Splitting Equity Series. If you missed it, start your journey here: Introduction - Early Startup Equity — Getting it Right before continuing on if you haven’t already, and go in order from there.

Phase One - Startup Equity - Avoiding Early Mistakes

Phase Two - How Startup Equity Works

Phase Three - Part 1 - How to Split Equity

• Part 2 - Splitting Equity Today

• Part 3 - Splitting Equity in the Future ( ←YOU ARE HERE 😀)

• Part 4 - Calculating Startup Equity Splits + FAQ

Phase Four - Equity Management

Let's continue!

Founder equity splits rarely turn out to be what we hoped they would be after Year 1. The co-founders at startup companies start off with the best intentions, but as the business venture turns into lon...

“Because you’re worth it.”

The L’Oréal Fallacy afflicts those founders who find themselves faced with an offer for their company and the chance of an exit.

This is the moment many have dreamed of. But life is no respecter of dreams: the potential exit is often smaller than the founder has hoped. The founder finds himself conflicted: wanting an exit, but believing that the offer on the table undervalues his work and the potential of his company.

The L’Oréal Fallacy is the belief that you should hold out for the exit you deserve—because you’re worth it.

This fallacy corrupts decision making at a crucial point—the point when monetary success is actually a tangible prospect.

First-time founders, in particular, should take their exit when they c...

According to figures reported in the GEM Global Report, 100 million new businesses are launched annually.

Thats nearly 11,000 startups per hour.

So, how do you beat this competition? By raising more funds? By marketing more aggressively? Maybe. But, I believe that increasing the brand value of your startup can help it not only survive the competition but thrive.

When it comes to marketing your business, branding is an old concept. Unfortunately, it’s one that few startups utilize properly. Review these 7 tips to improve (or build!) your startup’s branding:

Tip #1 — No persistence, no brand

For example, what are the labels you would associate with the Nike brand?

You’re probably thinking somewhere along the lines of sports, Michael Jordan,...