Forums Search

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...

Although plenty of established corporations have begun to embrace niche areas of the green movement, they’re often slow to change. Consequently, achieving true sustainability can take a long time — but it doesn’t have to. Thanks to a new breed of disruptive entrepreneurs, the majority of vertical markets are tackling green initiatives and spurring widespread interest in smarter stewardship of natural resources.

This evolutionary process toward greener values, policies, and models hasn’t been lost on stakeholders. From the consumer to the employee to the potential new hire, people universally are increasing their expectations of brands when it comes to aligning with their environmental values. Investors know this innately; even larger ones a...

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...

You’ve probably seen stories of the ridiculous surge in stock prices when a company adds “blockchain” to its name, but have you heard of “cloud washing?” Essentially, cloud washing is a deceptive practice in which a vendor rebrands an old product or service that relies on the internet by associating it with the cloud.

Many service providers are simply moving their clients’ on-premise software to a data center and calling it a cloud solution. In reality, there’s much more to a true cloud solution than the location of the servers.

Red Flags From Fake Cloud Providers

There are a number of warning signs that a phony cloud provider might be trying to fool you. To start with, a cloud-native provider will be eager to offer you a free trial. Typica...

Be sure to catch Part I of this discussion

“The customer is why you exist. Why your company chooses to exist. If you don’t put them on a pedestal, if you don’t remind yourself, your team, your operations why you’re a business, why you’re here, you’re destined for fail.”

–Joshua Davidson, Six Customer Service Principles To Abide By

New, new, new, new…. We tend to grow the most excited over new things and to obsess over them, so it’s no surprise that startups focus tremendous energy on new customers. So much so, that a vey important player in the destiny of companies gets overlooked: existing customers.

Unforgivable as that might be, the good news, according to Dr. Deborah Hecker, is that “respect, empathy, good listening, recognizing that ...

SEO. You’ve heard the acronym and you know that a lot of small businesses are seeing great growth from investing in it. But you don’t know how to do it, or what it can mean for your company.

SEO is an ongoing full-company initiative. It involves a very real investment.

But, you’re a small business or a startup. You have very limited resources, a short financial runway, and you’re trying to get something new off the ground. So what does SEO mean for you?

In the next 10 minutes you spend reading this article, my goal is to help you understand what SEO can mean for a small business like yours. We’ll cover:

1. How to invest in it from the beginning;
2. What you can do in the coming weeks to set yourself a solid foundation;
3. How to leverage PR for SEO...

The idea of bringing on a "Superstar Advisor" is usually a total sham.

This isn't because the advisors themselves are a sham (they may be), but more so because our expectations of what these superstar advisors can do are way out of line.

The cost to this notion is giving away valuable equity or creating lob-sided revenue deals without really thinking through what these folks can realistically contribute. It's so easy for Advisors to make bold claims about what's possible, but like the rest of us, it's incredibly hard to back them up consistently.

But again, this normally isn't the fault of the advisors — it's our fault. We lull ourselves into expectations of these heroes that are totally unrealistic, and in many cases, not even what these ...

Every kid should become a startup Founder, even if they never want to start a business.

Years ago, I started teaching entrepreneurship at my kid's Middle and High schools. What I thought might be an exercise in futility wound up being an incredibly eye-opening experience. As it turns out, kids are freakishly good at being Startup Founders!

When I was a kid, no one told me I could forge my own path. We sort of were handed a dozen careers, and you got to pick one. It was basically our guidance counselor telling us "Oh, you're good at math? You'll be an accountant." Never mind that we never really wanted to be accountants.

Kids Have Unlimited Curiosity

Instead of shoe-horning kids into some prescribed path, entrepreneurship leverages their gre...

What is an S Corp?

An S Corporation is a type of business corporation.

An S Corp passes all their finances — corporate income, losses, deductions, and credits — through their shareholders. Because S Corp shareholders report the income and losses of the company on their own personal tax returns, the company isn’t subject to double taxation.

S Corp Structure

Shareholders

The shareholders of an S corp are the owners. They’re the ones who “hold” shares of stock.

Depending on how much stock they own, they have varying degrees of influence on the corporation — but they don’t make the decisions or run the day-to-day. Instead, they elect the company’s directors, who take care of all of that. They also vote to remove directors, when it seems like ...

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’...