Sadly, ABC’s “Shark Tank” is giving private equity investing a bad name. The "Sharks" are not the wise old investors they appear to be, but truly dangerous "Loan Sharks" that are out to eat entrepreneurs alive.
Comparing real-world Angel Investors to the show's Sharks is, well, like comparing fish to fowl. Real "Angel Investors" are in it for the long-haul. They want to give an
Recently (July 2013) the SEC finally eliminated the rules against general advertising and solicitation in the offering of private stock. Imagine seeing your company's stock advertised for sale on Facebook, Twitter and Linkedin. This is a landmark change in how small businesses raise capital. But don't rush out into the brave new world of fundraising without checking your facts. Here's what
The ABC reality TV show “Shark Tank” is incredible. Each week, contestants are offered millions of dollars for a piece of their company. They have about 30 seconds to say yes or no. It looks simple, doesn't it?
Behind the scenes, it is anything but simple — and the business owners are the most likely to be the least prepared. I suppose that’s why this is called the Shark Tank.
You ought to have your calculator handy when you watch ABC’s Shark Tank, the TV show where wealthy angel investors make on-the-spot investments into small businesses.
Last night a middle-aged company owner was offered 3 deals in rapid succession. For me, this was a simple math problem: Which offer gave the owner the best valuation?
The Offers Every offer implies what the investor thinks
Whether your business is growing rapidly or just getting started, you need cash. But negotiating equity investments can take a long time – time you don’t have.
You need cash NOW... meanwhile, venture capitalists (VC) and other investors will spend months negotiating deal terms. And just when you think the terms are finally set, there's another committee that has to approve them. Most
You've been carefully nurturing an equity investor and now he’s threatening to walk away from the deal. Despite an endless number of presentations, term sheets, meetings with partners and expensive legal documents, it looks like the negotiation is going to unravel. And that could unravel your business too.
What’s an entrepreneur to do?
You might think that good negotiating strategy
You've probably heard stories of Angel Investors swooping in to help fund a company. In today’s tight financial environment, it almost sounds like an urban myth. But wealthy individuals who invest in private companies do exist. And they are more plentiful than you might imagine. You might already know several.
Now, I wouldn’t count on Donald Trump writing you a check that solves all
I almost don't want to say it... "Do what you love, and the money will follow." You've heard it a thousand times, but it has a whole new meaning if you are looking to raise money from angel investors.
Angel investors -- high net-worth individuals who make personal bets on small companies -- like to do what they love, too. In fact, one rule of angel investing is to "invest in what you
You love being your own boss, but will investors in your company let you keep that job?
Taking venture capital – or even just a few thousand dollars from angels – often comes with strings attached. Be ready for investors to ask for a seat on your board of directors – even if you don’t have one yet!
Julia Stamberger, co-founder and president of Go Picnic, talked to me about taking a
Many entrepreneurs I know would be living in federal prison if current fundraising laws were strictly enforced. But funding a small business is about to get a lot safer and easier for business owners.
Prez Obama endorsed two new crowdfunding bills (not yet law) that would end “the red tape that prevents many rapidly growing startup companies from raising much-needed