Frank, Rimerman + Co. LLP’s Post

Venture beyond traditional markets. With P7, you’re not investing in numbers; you’re fueling real businesses and tangible assets. Be part of ventures with up to a 70% profit margin. PINESEVEN.COM

This is not to discourage you, but rather, to give you a bit of perspective into how the minds of investors work. Investors know for a fact that not all of their investments will pan out. This is why they have this “VC Power Law” in mind that states 90% of returns will come from just 10% of the portfolio. Knowing this is a great reminder to startup founders that when pitching to investors, what they will be looking for are those that have the highest chance of being that unique one from the bunch that will exit big. We’ve got tons of resources that can help you get there. Check them out here: https://lnkd.in/dMhdbvD

𝗜𝘀 𝗬𝗼𝘂𝗿 𝗖𝗮𝗽 𝗧𝗮𝗯𝗹𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿-𝗥𝗲𝗮𝗱𝘆? A clean cap table is your startup’s secret weapon. Imagine this: You're finalizing a funding round, and an investor spots a discrepancy in your cap table. Negotiations come to a screeching halt. This nightmare scenario is more common than you think, but it's 100% avoidable. Key elements of a clean cap table: 1. Accurate shareholder information 2. Up-to-date stock issuances and transfers 3. Clear vesting schedules 4. Properly documented convertible securities 𝘈 𝘚𝘢𝘢𝘚 𝘴𝘵𝘢𝘳𝘵𝘶𝘱 𝘐 𝘸𝘰𝘳𝘬𝘦𝘥 𝘸𝘪𝘵𝘩 𝘢𝘭𝘮𝘰𝘴𝘵 𝘭𝘰𝘴𝘵 𝘢 𝘤𝘳𝘶𝘤𝘪𝘢𝘭 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘥𝘶𝘦 𝘵𝘰 𝘤𝘢𝘱 𝘵𝘢𝘣𝘭𝘦 𝘪𝘴𝘴𝘶𝘦𝘴. 𝘋𝘰𝘯’𝘵 𝘭𝘦𝘵 𝘵𝘩𝘢𝘵 𝘣𝘦 𝘺𝘰𝘶. Need help cleaning up your cap table? Let’s connect and ensure your startup is investor-ready. #VentureCapitalist #Consultant #CompanySecretary

VC capital can handcuff founders to investors They start answering to capital , not customer, Vision is blurred and ownership dilutes The alternative is to build a great business on expertise and hustle. The founders can grow their business rapidly by borrowing strategies straight from the tech playbook For instance, a founder can take charge by building a profitable service business

One crucial area for businesses is cash flow management. Overseeing the process of money coming in and going out, and monitoring and optimizing funds are a heavy responsibility in any organization. Two successful founders of one of the fastest-growing wealth tech startups shared their perspectives on raising capital and how to best manage your company’s funds: -In the early stages, your story is what matters most -Money stirs up emotions, have a listening ear and thick skin -Be frugal, spend your money wisely, always choose affordable options -Seasoned investors are the key to understanding the market and accumulating the capital you need 🔗: https://lnkd.in/gkCwzXS8 #CashFlowManagement #FinancialInsight #CashFlow

The protective provisions in a term sheet give investors the power to influence important decisions in a startup, even if they don't own the majority of the company. These provisions, typically deliberated during the Series A phase, encompass: ✔️ Anti-Dilution Protection ✔️ Pro-Rata Rights ✔️ Redemption Rights ✔️ Registration Rights ✔️ Voting Rights ✔️ Veto Rights Protective provisions in the term sheet are meant to benefit both investors and the founder: 📌 Benefits for Investors: ➖Reduces risks from share value fluctuations. ➖Grants a say in critical decisions. ➖Maintains ownership percentage in future funding. ➖Allows share selling in public markets. 📌 Benefits for Founders: ➖Makes startups more appealing to investors. ➖Aligns goals of investors and founders. ➖Enhances strategic decision-making. ➖Leads to better funding terms and conditions. Follow us for more insights and updates on venture capital and fintech! #TermSheet #FinVentures #StartupInvesting

Whether in trading public markets, trading assets, building a business or a startup, etc. the key to success is the ability to define “Focus” and to execute “Focus”

Money Does Both ... Talk and Walk Navigating the funding spectrum of a start-up involves distinct phases, each with unique requirements. Initially, family and friends investments are common, characterized by informal agreements and trust-based loans or equity. As the business grows, angel investors become pivotal, requiring detailed business plans and compelling pitches demonstrating market potential and strong management. Next, securing venture capital necessitates rigorous due diligence, comprehensive financial forecasts, and evidence of traction. Venture capitalists often seek substantial equity and board representation. Further along, preparing for an IPO demands stringent financial audits, regulatory compliance, and the readiness to disclose detailed company performance. Successful IPO or sale culmination requires strategic planning and long-term growth vision to attract public investors or potential acquirers, ensuring robust exit strategies and liquidity for stakeholders. PEG has relevant experience in each of these scenarios. With A Bias for Action, we can leverage experience into success for founders, investors and company boards.

A friend and mentor of mine asked if Duration Growth Advisors works on equity deals, here was my response: My practice will include equity, but unlikely to include VC. The reason being is I believe most founders are looking to build a high quality sustainable business that they can sell for an amount that sets their family up for life. This amount is typically in the $10-50m range on exit. When VC gets involved, this is no longer a viable path so I tend to steer founders away from VC financing. What I do include in my service is hybrid (debt/equity) funds that will provide a debt facility with a lower dilution equity product on the backend or private equity, a great path for founders to crystallize some of the value of their business along the way. Do you agree with this assessment of VC for SaaS businesses?

One of the most important “arts” of VC is properly applying lessons from one company to another. My impression is lots of value gets destroyed by investors misapplying those lessons.