January 4, 2010
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Company Culture
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Theodoros Dionysiou
As the recession ends, that is also good news for the next “Google”-inspired idea.
“I’m seeing a slight uptick in VC funding,” said Lori Hoberman Chair, Corporate and Securities Group at Fish & Richardson P.C. “There are funds out there who are looking at this time period as an opportunity to buy some bargains.”
“However, the average start-up is much too early for a venture fund,” explained Hoberman. “I tell my clients, ‘If you can sleep borrowing money from friends and family, do it.’ As for angel investors, you need to find that certain individual who likes the industry you’re in. But again, family and friends is one of the better ways to get started.”
Other tips from Hoberman regarding early-stage funding are:
1. Going to a local bank is an option but it is tough because you need collateral. You’ll never get funding without it. And that, more often than not, is your house.
2. I like to see if he or she has a path -- angel investor or friends/family -- to get the company though a 12-month period. That means a budget and a sense of where the company is spending the money.
3. If technology is involved, the firm might consider spending money on a patent application. That can cost $10,000 to $12,000.
4. Perceptive Pixel supplies big, multiplex screens to networks for election coverage and the like. They were one of my early-stage clients. I met the founder over sushi and we discussed the right type of entity to form and how much money it would take to get it up and running. If there is more than one founder, they will need a shareholders or operating agreement, depending on the entity that is formed.
Other sources are:
- StartupAlpha’s VC Pitch Parties host entrepreneurs and technology service providers while showcasing leading VCs and startup founders.
- VentureBeat covers venture investments and startups.
Check your balance, review recent transactions and pay your bill on the go.
Theodoros Dionysiou 1 year 2 months and 10 days ago
Excellent article. Thanks for sharing.--http://www.pmcorporatelaw.com