Startup Funding
What is startup funding?
Process where you as an entrepreneur, approach potential investors to support your business with money, usually in return for a percentage of your business.
What is bootstrapping?
Process of building a business from scratch without the help of investors, or without large loans from the bank. Relies on only the owners capital, and reinvesting all the profits.
Who is Paul Allen and what company did he cofound?
Microsoft
Founder that built Patagonia and on what foundation?
Yvon Chouinard on the foundation of environmental activism.
What is Pre seed funding?
Funding that a founding team will pitch to investors for money for original infrastructure for the business. Essentially getting money to start the business, the business hasn't been started yet.
What is due dilligance?
This is the process of assessing the value of a company before investing in it. Make sure it is worth giving the company money and that there is a good chance to make profit from the equity.
Mark Zuck, initial 500,000 SEED fund
Used growth hacking strategy to grow hotmail
Sabeer Bhatia
What is seed funding?
Funding the founders will pitch for money to scale the business. It has already started, you just need a large sum to scale. Can be used for hiring, new buildings, new technology, etc.
What is Cash flow break even?
This is the turning point in which a businesses cash flow turns posotive.
Founder of Amazon and what funding did he use?
Jeff Bezos and he was SELF FUNDED (bootstrapping)
Disrupted hotel industry using unique strategy
Brian Chesky used AirBNB and a sharing economy to rival the hotel industry.
What are angel investors?
Angel investor is someone who invests their OWN money in exchange for equity.
What is a preemptive right?
A contractual right that gives the holder of the right the first opportunity to purchase an asset.
What was original marketing strategy for Apple Founder
Known for first principal thinking in his company SpaceX
Elon Musk
What is crowdfunding?
Method of receiving funding by collecting small contributions from a large number of people. These people in return can get special access to products, exclusive rewards within the startup, or even equity in some cases.
What is an SBA LOAN
Government program that provides funding for small businesses. Usually have lower interest rate.
How did Snapchat get so much success early?
Appealed to certain demographic and marketed very well through the youth.
Used a now common strategy called "blitzscaling" to rapidly grow his company
Reid Hoffman with Linkedin