I’ve had startup founders tell me that it’s only about the color of the money, but I disagree. Particularly if you are desperate, keep in mind the person who finds a good-looking partner to take home from the bar at closing time, but then wakes up in the morning wondering “What did I just do?” Taking on an investor is like getting married – the relationship has to work at all levels.
Due diligence on an investor is where you validate the track record, operating style, and motivation of your new potential partner. Maybe more importantly, you need to confirm that the investor “chemistry” matches yours. Here are some techniques for making the assessment:
- Talk to other investors. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others. Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand.
- Network with other entrepreneurs. Contact peers you have met through networking, both ones who have used this investor, and ones who haven’t. Ask the investor for “references,” meaning contacts at companies where previous investments were made. Don’t just call, but personally visit these contacts.
- Check track record on the Internet and social network. Do a simple Google search like you would on any company or individual before signing a contract. Look for positive or negative news articles, any controversial relationships, and involvement in community organizations. Check the profile of principals on LinkedIn and Facebook.
- Spend time with investors in a non-work environment. As with any relationship, don’t just close the deal in a heated rush. Invite the investment principal to a sports event, or join them in helping at a non-profit cause. Here is where you will really learn if there is a chemistry match that will likely lead to a good mentoring and business relationship.
- Validate business and financial status. Visit the firm’s website and read it carefully. Look for a background and experience in your industry, as well as quality and style. Conduct a routine credit and criminal check, using commercial services like HireRight. Be wary of individuals or funds sourced from offshore.
If you think all this sounds a bit sinister and unnecessary, go back and read again some of the articles about Bernie Madoff and recent investment scams. Remember, if it sounds too good to be true, it probably isn’t true. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist).
I recognize that it has been tough to raise capital these last couple of years, but don’t be tempted to take money from any source. This can be a big mistake, with common complaints running the gamut from unreasonable terms, constant pressure, to company takeovers. Be vigilant and ask questions.
A successful entrepreneur-investor agreement better be the beginning of a long-term relationship. If you don’t feel excited and energized by your first discussions with an investor, give it some time and do your homework. If the feeling doesn’t grow, it may be time to move on. It’s better to be alone than to wish you were alone.
Martin Zwilling is CEO & Founder of Startup Professionals, Inc.; he also serves as Board Member and Executive in Residence at Callaman Ventures and is an advisory board member for multiple startups.This post was originally published on his blog, and it is republished here with permission.
The real message from voters was “Fix this stinking economy.” But Republicans have no intention of doing so.
With Republicans in control of the House, forget spending increases or tax cuts to stimulate the economy.
Republicans don’t believe in stimulating economies. They think markets eventually clear — once the pain is sufficient. Or in the immortal words of Herbert Hoover’s treasury secretary, millionaire industrialist Andrew Mellon: “Liquidate labor, liquidate stocks, liquidate the farmer, liquidate real estate. It will purge the rottenness out of the system. People will work harder, lead a more moral life.”
Of course, Mellon was dead wrong. Nothing was purged. Instead, the economy sunk into deeper and deeper depression.
So how do we get out of this bog?
By default, all the responsibility is on the Federal Reserve — which announced today (Wednesday) it will pump $600 billion into the economy between now and June to reduce long-term interest rates (“quantitative easing” in Fed-speak).
The Fed thinks lower long-term rates will (1) push more businesses to expand capacity and hire workers; (2) push the dollar downward and make American exports more competitive and therefore generate more jobs; and (3) allow more Americans to refinance their homes at low rates, thereby giving them more cash to spend and thereby stimulate more jobs.
But without an expansionary fiscal policy, the Fed’s goals are pipe dreams.
Lower rates won’t spur businesses to expand capacity and jobs because there aren’t enough consumers to buy additional goods and services.
Lower rates won’t push down the dollar and spur more exports. They’ll only spur more competitive devaluations by other nations determined not to lose export shares and jobs.
And lower rates won’t allow middle-class and working-class Americans to refinance their homes because banks won’t lend to families whose incomes have dropped, whose debts have risen, or who owe more on their homes than the homes are worth. That is, most of us.
Without an expansive fiscal policy that puts more money into the pockets of consumers and gets them out from under their huge debt load, the Fed’s billions will just fuel another stock-market bubble.
It’s already started. Stocks are up even though the rest of the economy is still down because money is already so cheap. Bondholders who can’t get much of any return from their loans are shifting into stocks. Companies are buying back more shares of their own stock. And Wall Street is making more bets in the stock market with money it can borrow at almost zero percent interest.
In other words, with Republicans in charge of the House, the economy remains anemic. It may even succumb to another bubble that bursts.
Could it be that Republicans want to keep the economy this way through Election Day, 2012?
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
bench craft company
Due diligence should always be a two-way street. A while back, I published an article on “Understanding the Dreaded Investor Due Diligence,” describing what investors do to validate your startup before they invest. Here is the inverse, sometimes called reverse due diligence, describing what you should do to validate your investor before signing up for an equity partnership.
I’ve had startup founders tell me that it’s only about the color of the money, but I disagree. Particularly if you are desperate, keep in mind the person who finds a good-looking partner to take home from the bar at closing time, but then wakes up in the morning wondering “What did I just do?” Taking on an investor is like getting married – the relationship has to work at all levels.
Due diligence on an investor is where you validate the track record, operating style, and motivation of your new potential partner. Maybe more importantly, you need to confirm that the investor “chemistry” matches yours. Here are some techniques for making the assessment:
- Talk to other investors. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others. Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand.
- Network with other entrepreneurs. Contact peers you have met through networking, both ones who have used this investor, and ones who haven’t. Ask the investor for “references,” meaning contacts at companies where previous investments were made. Don’t just call, but personally visit these contacts.
- Check track record on the Internet and social network. Do a simple Google search like you would on any company or individual before signing a contract. Look for positive or negative news articles, any controversial relationships, and involvement in community organizations. Check the profile of principals on LinkedIn and Facebook.
- Spend time with investors in a non-work environment. As with any relationship, don’t just close the deal in a heated rush. Invite the investment principal to a sports event, or join them in helping at a non-profit cause. Here is where you will really learn if there is a chemistry match that will likely lead to a good mentoring and business relationship.
- Validate business and financial status. Visit the firm’s website and read it carefully. Look for a background and experience in your industry, as well as quality and style. Conduct a routine credit and criminal check, using commercial services like HireRight. Be wary of individuals or funds sourced from offshore.
If you think all this sounds a bit sinister and unnecessary, go back and read again some of the articles about Bernie Madoff and recent investment scams. Remember, if it sounds too good to be true, it probably isn’t true. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist).
I recognize that it has been tough to raise capital these last couple of years, but don’t be tempted to take money from any source. This can be a big mistake, with common complaints running the gamut from unreasonable terms, constant pressure, to company takeovers. Be vigilant and ask questions.
A successful entrepreneur-investor agreement better be the beginning of a long-term relationship. If you don’t feel excited and energized by your first discussions with an investor, give it some time and do your homework. If the feeling doesn’t grow, it may be time to move on. It’s better to be alone than to wish you were alone.
Martin Zwilling is CEO & Founder of Startup Professionals, Inc.; he also serves as Board Member and Executive in Residence at Callaman Ventures and is an advisory board member for multiple startups.This post was originally published on his blog, and it is republished here with permission.
The real message from voters was “Fix this stinking economy.” But Republicans have no intention of doing so.
With Republicans in control of the House, forget spending increases or tax cuts to stimulate the economy.
Republicans don’t believe in stimulating economies. They think markets eventually clear — once the pain is sufficient. Or in the immortal words of Herbert Hoover’s treasury secretary, millionaire industrialist Andrew Mellon: “Liquidate labor, liquidate stocks, liquidate the farmer, liquidate real estate. It will purge the rottenness out of the system. People will work harder, lead a more moral life.”
Of course, Mellon was dead wrong. Nothing was purged. Instead, the economy sunk into deeper and deeper depression.
So how do we get out of this bog?
By default, all the responsibility is on the Federal Reserve — which announced today (Wednesday) it will pump $600 billion into the economy between now and June to reduce long-term interest rates (“quantitative easing” in Fed-speak).
The Fed thinks lower long-term rates will (1) push more businesses to expand capacity and hire workers; (2) push the dollar downward and make American exports more competitive and therefore generate more jobs; and (3) allow more Americans to refinance their homes at low rates, thereby giving them more cash to spend and thereby stimulate more jobs.
But without an expansionary fiscal policy, the Fed’s goals are pipe dreams.
Lower rates won’t spur businesses to expand capacity and jobs because there aren’t enough consumers to buy additional goods and services.
Lower rates won’t push down the dollar and spur more exports. They’ll only spur more competitive devaluations by other nations determined not to lose export shares and jobs.
And lower rates won’t allow middle-class and working-class Americans to refinance their homes because banks won’t lend to families whose incomes have dropped, whose debts have risen, or who owe more on their homes than the homes are worth. That is, most of us.
Without an expansive fiscal policy that puts more money into the pockets of consumers and gets them out from under their huge debt load, the Fed’s billions will just fuel another stock-market bubble.
It’s already started. Stocks are up even though the rest of the economy is still down because money is already so cheap. Bondholders who can’t get much of any return from their loans are shifting into stocks. Companies are buying back more shares of their own stock. And Wall Street is making more bets in the stock market with money it can borrow at almost zero percent interest.
In other words, with Republicans in charge of the House, the economy remains anemic. It may even succumb to another bubble that bursts.
Could it be that Republicans want to keep the economy this way through Election Day, 2012?
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
bench craft company
bench craft company
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
bench craft company
Due diligence should always be a two-way street. A while back, I published an article on “Understanding the Dreaded Investor Due Diligence,” describing what investors do to validate your startup before they invest. Here is the inverse, sometimes called reverse due diligence, describing what you should do to validate your investor before signing up for an equity partnership.
I’ve had startup founders tell me that it’s only about the color of the money, but I disagree. Particularly if you are desperate, keep in mind the person who finds a good-looking partner to take home from the bar at closing time, but then wakes up in the morning wondering “What did I just do?” Taking on an investor is like getting married – the relationship has to work at all levels.
Due diligence on an investor is where you validate the track record, operating style, and motivation of your new potential partner. Maybe more importantly, you need to confirm that the investor “chemistry” matches yours. Here are some techniques for making the assessment:
- Talk to other investors. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others. Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand.
- Network with other entrepreneurs. Contact peers you have met through networking, both ones who have used this investor, and ones who haven’t. Ask the investor for “references,” meaning contacts at companies where previous investments were made. Don’t just call, but personally visit these contacts.
- Check track record on the Internet and social network. Do a simple Google search like you would on any company or individual before signing a contract. Look for positive or negative news articles, any controversial relationships, and involvement in community organizations. Check the profile of principals on LinkedIn and Facebook.
- Spend time with investors in a non-work environment. As with any relationship, don’t just close the deal in a heated rush. Invite the investment principal to a sports event, or join them in helping at a non-profit cause. Here is where you will really learn if there is a chemistry match that will likely lead to a good mentoring and business relationship.
- Validate business and financial status. Visit the firm’s website and read it carefully. Look for a background and experience in your industry, as well as quality and style. Conduct a routine credit and criminal check, using commercial services like HireRight. Be wary of individuals or funds sourced from offshore.
If you think all this sounds a bit sinister and unnecessary, go back and read again some of the articles about Bernie Madoff and recent investment scams. Remember, if it sounds too good to be true, it probably isn’t true. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist).
I recognize that it has been tough to raise capital these last couple of years, but don’t be tempted to take money from any source. This can be a big mistake, with common complaints running the gamut from unreasonable terms, constant pressure, to company takeovers. Be vigilant and ask questions.
A successful entrepreneur-investor agreement better be the beginning of a long-term relationship. If you don’t feel excited and energized by your first discussions with an investor, give it some time and do your homework. If the feeling doesn’t grow, it may be time to move on. It’s better to be alone than to wish you were alone.
Martin Zwilling is CEO & Founder of Startup Professionals, Inc.; he also serves as Board Member and Executive in Residence at Callaman Ventures and is an advisory board member for multiple startups.This post was originally published on his blog, and it is republished here with permission.
The real message from voters was “Fix this stinking economy.” But Republicans have no intention of doing so.
With Republicans in control of the House, forget spending increases or tax cuts to stimulate the economy.
Republicans don’t believe in stimulating economies. They think markets eventually clear — once the pain is sufficient. Or in the immortal words of Herbert Hoover’s treasury secretary, millionaire industrialist Andrew Mellon: “Liquidate labor, liquidate stocks, liquidate the farmer, liquidate real estate. It will purge the rottenness out of the system. People will work harder, lead a more moral life.”
Of course, Mellon was dead wrong. Nothing was purged. Instead, the economy sunk into deeper and deeper depression.
So how do we get out of this bog?
By default, all the responsibility is on the Federal Reserve — which announced today (Wednesday) it will pump $600 billion into the economy between now and June to reduce long-term interest rates (“quantitative easing” in Fed-speak).
The Fed thinks lower long-term rates will (1) push more businesses to expand capacity and hire workers; (2) push the dollar downward and make American exports more competitive and therefore generate more jobs; and (3) allow more Americans to refinance their homes at low rates, thereby giving them more cash to spend and thereby stimulate more jobs.
But without an expansionary fiscal policy, the Fed’s goals are pipe dreams.
Lower rates won’t spur businesses to expand capacity and jobs because there aren’t enough consumers to buy additional goods and services.
Lower rates won’t push down the dollar and spur more exports. They’ll only spur more competitive devaluations by other nations determined not to lose export shares and jobs.
And lower rates won’t allow middle-class and working-class Americans to refinance their homes because banks won’t lend to families whose incomes have dropped, whose debts have risen, or who owe more on their homes than the homes are worth. That is, most of us.
Without an expansive fiscal policy that puts more money into the pockets of consumers and gets them out from under their huge debt load, the Fed’s billions will just fuel another stock-market bubble.
It’s already started. Stocks are up even though the rest of the economy is still down because money is already so cheap. Bondholders who can’t get much of any return from their loans are shifting into stocks. Companies are buying back more shares of their own stock. And Wall Street is making more bets in the stock market with money it can borrow at almost zero percent interest.
In other words, with Republicans in charge of the House, the economy remains anemic. It may even succumb to another bubble that bursts.
Could it be that Republicans want to keep the economy this way through Election Day, 2012?
bench craft company
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
bench craft company
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
bench craft company bench craft company
bench craft company
bench craft company
bench craft company
Tonino Lamborghini Spyder Series Luxury Mobile Phones | iTech <b>News</b> <b>...</b>
Following CULV notebooks, Tonino Lamborghini releases in Hong Kong its Spyder line of luxury mobile phones. There are six models, S-600, S-610, S-620,
Energy and Global Warming <b>News</b> for November 4th: German solar <b>...</b>
12 Responses to “Energy and Global Warming News for November 4th: German solar costs could beat fossil fuels by 2020; Oil prices to rise without climate action; 2.5 GW offshore wind for South Korea; $2.4 Billion for high speed rail” ...
Fox <b>News</b> Fair And Balanced | MSNBC Political coverage | Mediaite
If one believes that the cable news landscape is symptomatic of our two-party political system, then one also probably and predictably saw a different tone in last nights election results. Fox News presented its coverage with a patina ...
benchcraft company portland or
One of the most legitimate ways to make money at home is by using Google Adsense. It is a great opportunity available to almost everyone that signs up. Keep in mind though that it isn't one hundred percent free to start making money by using this program. You are going to have to purchase a hosting package through a website hosting company and pay monthly to keep your website on line. Your own website is needed to start making money through Google Adsense. However, it is one hundred percent free to start your adsense account.
To begin making money with Goolges adsense program you are going to need to sign up. To get to the right site, type Google Adsense into your browsers search bar. The first site that comes up on the search page should be the right site. Once you've opened up the page, find the sign up button for the adsense program and complete the application. It may take a few weeks for them to get back to you on approval, most likely your application won't be denied. If you have been accepted you can begin making money through there program.
The way it works is, Google pays you to advertise there adds on your website. Every time someone visits your website and clicks on one of the adds you will get a few cents. This adds up fast so don't be disappointed if your only making a cent or two every time someone clicks on the adds. I have seen people make thousands of dollars a month off of Googles adsense program, but they have more than one attracting website live on the web.
If you have never made a website before, I suggest you visit the web hosting site Godaddy.com. Give them a call and let them know that you are in need of a website for Google Adsense. They will set you up with everything you need to begin creating your website and monthly hosting plan. They even offer already made website templates if you don't know how to create one. Once you've got your hosting plan and website template picked out, you can begin adding content to your site.
To begin adding content to your website, choose a topic that you would like to write about. For instance my topic is celebrity fashion. I make websites and write about celebrity's and what they wear. I choose to write about this topic because it is a highly searched topic on the Internet and I enjoy writing about it. So every time someone searches celebrity fashion and anything related through their browser, there is a big possibility of them clicking on my website. If you don't understand how to add content to your site, be sure to give your hosting site a call and they will help you out.
After you've created your site you can add advertisements to your page to start making money. With your adsense account you can generate adds to put on your website. Google makes it so the add always matches your websites content. This is what makes it more likely that the person who opened your website will click on the adds. If they do click on an add, you just made money.
Google adsense is an extremely fun program. The more websites you create, The more money you will make. Remember to add good keywords to your website as it will generate more page views. It may take a while to get the hang of everything, but it is well worth it. Don't give up.
No comments:
Post a Comment