This Insights article was contributed by Brendan Collins, Seahawk Innovation Partner and CEO of mimijumi
Friends and family. Angel investors. Incubators. Series A. Convertible preferred stock. Liquidation preference.
The world of startup financing is filled with buzzwords and murky concepts that can be overwhelming and confusing for entrepreneurs. The mainstream business media, with its focus on fundraising, doesn’t help, and entrepreneurs could be forgiven for thinking entrepreneurship is all about raising capital and that successful fundraising equates to a pure victory.
But the reality is not so simple.
Successful traded sector startups need the three Ts of “time, talent and treasure.” In our experience at Seahawk Innovation, “treasure” is the least important of the three Ts. We advise entrepreneurs to follow a milestone-based fundraising model in which they raise only the capital required to achieve the next major milestone.
Entrepreneurs should invest their time and talents to identify a well-considered value proposition and develop a robust business model before thinking about raising money. The longer entrepreneurs can wait—and the more milestones they can achieve—before raising money, the better off they will be.
There are a few reasons why:
Untappd Taps Out Of Downtown Wilmington Office Building
Cece Nunn
-
Jan 30, 2023
|
|
ILM To Chart Future Path In Forthcoming Report
Miriah Hamrick
-
Jan 30, 2023
|
Landon Hill is the founder and owner of the mobile app that seeks to promote local fishers and make it easier for buyers to find fresh seafo...
With more than 15 years of experience in the wood chip industry, Taner Basaga has maintained key relationships with loggers in the region. “...
Many industries have started to recover from the roiling effect the pandemic had on the labor market, but nearly three years after the first...
The 2023 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.