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ArticleA Mere Million Dollars

A Mere Million Dollars

In a world of billion dollar exits and absurd funding rounds, startup Founders have lost sight of what financial success really is.

Don’t get me wrong… Having billions of dollars is amazing. But, you know what else is cool? Making a million flipping dollars. Especially when you don’t have a million flipping dollars!

Let’s take the time to recalibrate how we think about startup success — and more specifically — Founder success. When we get to the point where we can only think of “success” as some astronomical, arbitrary outcome, we’re headed down a very dangerous path that affects our startup, our finances and — if we’re being honest — our health.

“But a $1 million business isn’t very big.”

No, a million dollar business isn’t very big. ...



ArticleWhen a $40m Exit is More Than a $200m Exit

When a $40m Exit is More Than a $200m Exit

What if I told you that selling a company for $40 million could net you more money than if you sold it for $200 million?

On its face, it sounds ludicrous, I know! But what's missing in that formula isn't the exit price, but how much of that exit we get to put in our pocket as we raise more rounds of capital.

More importantly, our opportunities to sell for $40m are dramatically more abundant than selling for $200m (or more!). That means every time we raise capital, while it sounds like we're improving our chances of an outcome, we're also reducing our options to find an exit at all.

Real Founder Dilution Numbers

CapShare released a study of 5,000 startup cap tables to determine how much equity Founders have at each stage of a funding round. ...



ArticleHow Much Equity Should I Ask For?

How Much Equity Should I Ask For?

Startup Equity: What Should You Ask For?

If you’re already in the startup world, there’s a strong likelihood that you Founder equity (we’d be surprised if you didn’t!), but if you’re new to the industry, understanding how much to ask for in any given opportunity might be somewhat of a mystery to you. We are here with the help of fellow entrepreneurs in our community to share insights, guidelines, and other resources for anyone in the position to ask for (and receive) equity compensation from a company.

What is Equity Compensation?

Equity is the value of a company's stock, which you earn as a percentage of the company’s profits (or losses). Equity compensation can be thought of as an investment: when you own equity in a company, you're putting...



ArticleWhy Aren't Investors Responding to Me?

Why Aren't Investors Responding to Me?

In order to keep their sanity, investors have to look for signals to determine which emails to even open — much less respond to. This is where the art of contacting investors gets interesting.

How important are personal connections?

The most important, by far.

If we had to compare an email sent through a trusted connection with a crappy company versus a cold email with a great company, chances are the crappy company would get a response. That's because investors put so much weight on whether the introduction is being vetted through a trusted friend.

But my deal is so sweet, won't that help?

Not if the e-mail never gets opened or read.

The first goal in contacting investors is to get them to even look at you. The second goal is to get the...



Article13 Key Business Plan Components

13 Key Business Plan Components

As is the case with most big projects, crafting a business plan is one of those things that takes an incredible amount of diligence and no shortage of courage. After all, your business idea is probably more than just some passionless money-making ploy — it’s your dream that you’re getting ready to lay bare for the world to scrutinize!

Never fear!

We have 4 sample business plans here to make it all less scary.

If you approach this with a firm understanding of what key information to include in each section of your business plan and know how each section works together to form a cohesive, compelling, and — above all — persuasive whole, it will make the writing process a whole lot less daunting.

We’re about to help you do exactly that by deconstru...



ArticleOne and Not Done

One and Not Done

Some entrepreneurs sail blissfully into the sunset after their first big payday. Others — like us — can’t imagine anything more boring. Instead, we thrive on constantly risking it all to build something out of nothing.

This condition of serial entrepreneurship is what I call “one and not done” syndrome. Maybe we’re crazy to be willing to start a business again and again. We know it will be hard, if not seemingly impossible, and there will be times when we will be overwhelmed with frustration. In spite of that, we know the journey is worth it.

If you’re this special breed of entrepreneur, I feel both sorry and happy for you. More than anything, I welcome you to the club.

There is a magic to what we do as entrepreneurs. We can create a thrivi...



ArticleEverything You Need To Know About Pitching Investors

Everything You Need To Know About Pitching Investors

The investor pitch. It's feared. It's desired. It's terrifying.

But don't worry: We've got you covered. Here's everything you need to know about that all-important investor pitch.

What should your investor pitch include?

Invisu.me Co-Founder and CEO Donna Griffit is a master pitcher who has helped countless founders distill their pitch down to exactly what they need — and nothing they don’t. She had the opportunity to sit in on a private pitching event where a delegation of startups had the opportunity give a five minute pitch and receive direct feedback from a group of top-tier Silicon Valley VC’s. (So top tier that she can’t even say who was there but, trust us, you will want to memorize this section before your next pitch.)

Here’s what ...



ArticleSmall Business Grants For Immigrants and Minorities

Small Business Grants For Immigrants and Minorities

Looking for small business grants that are geared towards immigrants and minorities? Well, you’re not the only one. Business grants are often described as “free money,” so they tend to be pretty popular.

But, here at Startups, we hate the term “free money.” It’s a word that people throw around a lot when they’re talking about grants. The reason we don’t call small business grants “free money” is because they take a lot of work to get. And there’s a lot of competition, so oftentimes that work doesn’t even result in a payday. Sure, you don’t have to pay back a small business grant the way you do a business loan — but it’s certainly not “free money.”

However, we also understand that minority business grants can really boost a startup, if they ...



ArticleMinority-Owned Businesses

Minority-Owned Businesses

What is a minority-owned business?

In order to be considered a "minority" in the world of small business, you must be at least 25%...

  • African-American
  • Hispanic-American
  • Asian-American
  • Pacific Islander
  • Alaskan Native
  • American Indian

Women-owned businesses, on the other hand, are another category.

In order for a business to qualify as minority-owned, it needs to be at least 51% owned by a person or persons from one of those groups.

Additionally, you’ll often need to be certified as a minority business enterprise (MBE) or a disadvantaged business enterprise (DBE) in order to qualify for certain loans or grants.

That’s not the case for all loans and grants, however, so make sure it’s a requirement before going through the process of gettin...



ArticleHow to Start a Crypto Startup

How to Start a Crypto Startup

A crypto startup is a business that deals with cryptocurrencies. Startups focused on this industry have been popping up all over the world in recent years. With the rise of Bitcoin, Ethereum, and other cryptocurrencies, many entrepreneurs are looking to create their own crypto or blockchain-based startup.

It sounds easy enough in theory, but for those new to the industry, it's much like learning another language. In this article, we aim to define, expand on, and share insights we have compiled to demystify the process of launching a crypto startup.

There are five main steps to starting a crypto startup (we'll expand more on this below):

1. Identify a problem that needs solving.

2. Create a white paper outlining the idea (i.e. a solution to the...



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