Critical Startup Tools and Resources
As an entrepreneur and business advisor and coach, I receive lots of questions from startup and early-stage founders about basic organization tasks such as: what type of entity to create, where to create their entity, how to allocate equity, and how to manage their capitalization table.
It’s always good to get expert advice when you need it but it’s critically important that you do your own research and due diligence so that you understand the basics of the problem you are trying to solve before you being those discussions. At least that’s the way I approach knowledge gaps.
This page has some of my favorite resources related to the critical steps in launching and successfully scaling a business. There are resources for managing your company’s equity, setting your initial valuation, and prepping for the term sheet process if you are planning to accept outside investment.
Some of these resources are pretty lengthy but you can listen to them on Audible in your car. Others, such as Stephen Poland Founder’s Pocket Guides, are quick reads that provide a basic understanding.
Creating the product and getting the business running are the fun and exciting bits of the process. But you must master the details to keep you equity stake and grow the company. You’ll need to hire experts in these areas but you’ll want to have a basic understanding so you can guide the process and be sure your interests are protected.
Part of my personal give-back to the entrepreneurial community is sharing my insights. I’m happy to take a short 15-minute call anytime I’m available.
Just complete one of the contact widgets to schedule a short call.
Wishing you and your team great success in your venture!
Robert Hess
Founder, Investor, Startup, and Early Stage Advisor
The Insights in These Books are Guaranteed to Save You Time and Heartache as You Grow Your Business. Enjoy!
The Lean Startup by Eric Reis
“The Lean Startup has a kind of inexorable logic Ries’ recommendations come as a bracing slap in the face to would-be tech moguls: Test your ideas before you bet the bank on them. Don’t listen to what focus groups say; watch what your customers do. Start with a modest offering and build on the aspects of it that prove valuable.” Wired. This is an invaluable resource before you begin.
Click the image below to preview the book.
Founder Pocket Guides – Fast Bites of Important Insights
How to Survive Term Sheet Negotiations
Investor funding comes through term sheets. You’ll need an attorney but you must have a good personal understanding of the process. This guide covers key terms associated with equity fundraising, such as pre-money valuation, founder dilution, down round, etc.
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How to Master Your Capitalization Table
Your capitalization table is critical to fundraising. This guide explains Founder’s shares, option pools, angel investor rounds, VC rounds, fully-diluted shares outstanding, preferred shares vs. common shares, Series A, Series B, and more. This is a “must have” and “must read.”
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How To Set Your Startup Valuation
Assigning a pre-money valuation to your startup is one of the more daunting startup challenges. You need to get it right. This guide explains all of the key topics around early-stage startup valuation and provides step-by-step examples for several valuation methods.
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Should You Use Convertible Debt?
Learn what convertible debt is and how it can fit into a fundraising structure. Key terms and definitions associated with convertible debt: conversion triggers, valuation caps, and conversion discounts. SAFE’s – Simple Agreement for Future Equity are another option.
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How to Split Founder Equity
The equity split is critical to a startup. Read this and then Slicing Pie by Mike Moyer. These insights may just save your company.
How to Raise Angel Capital
If you are new to the startup funding process and need to raise angel capital, start with this book. Learn if you are really “investor ready.”
How and When to Use Stock Options
Understand the forms of equity compensation, tax implications, and the other IRS rules governing equity ownership.
Raise Funds from Family & Friends
Learn all of the common friends & family funding structures: simple loans, profit sharing, equity deals, and convertible notes.