Nicole DeTommaso’s Post

For those seeking investors and for those making investments - a great thread by Nicole DeTommaso with important advice: Choose your key points but not all of them are available. Read 👇👇👇 #vc #investing #founders #startups

Two founders faced a capital challenge, but their approaches led to different outcomes. ✅ Founder A chose a VC, giving up 20% ownership for a $5M investment. ✅ Founder B sold receivables, gaining flexibility and avoiding dilution. Passing finance costs to clients added $10-$15M, fueling growth, projects, and hiring. Founder B's company is valued at $75M, attracting VCs with a $25M offer. Remember, explore all capital options and seek guidance for success. #capitalchoices #entrepreneurship #workingcapital #vcs #venturecapital #founders #finance #projects

What are your options when you run low on funding? You may be running out of funding because you couldn't raise funds in 2023. In addition, your business hasn't reached profitability yet. It is not rare to see growing businesses run out of cash. Most founders face funding problems at some point in their venture. You need to be on your toes when it happens. Because without funding the best of businesses may not be able to continue operating. Blackberry was unable to begin operations until it received its first external funding from Jim Balsillie. You run out of time when funds run low. Here are your options when you do. You can start to aggressively cut costs. While cutting costs, be mindful to only cut costs that do not impact customer value. Go through every line of expenses on your profit and loss statement. Then decide whether you can get rid of it in the short term. A good example is travel and entertainment, staff meals, external conferences, etc. Another way is to hire an M&A advisor to put you in contact with their network. Get in touch and get your funds. Follow me for valuable insights on #duediligence, #entrepreneurship, #mergersandacquisitions, #valuation, and #venturecapital. 🔍 For expert M&A assistance, check out https://thevallaris.com. 🤝 Make Your Move™. Follow Siong Yoong. VALLARIS

When you think of #business ownership outside of the VC-funded startup world, you probably think of one person who owns 100% of a business. That's not necessarily the case in #eta (Entrepreneurship Through Acquisition). How you go about structuring a deal when acquiring a business has huge implications for your ability to grow the business and accumulate #wealth. This ETA world is broadly split into two camps: - Self-funded searchers who use leverage to buy a business and usually own 90%+. - Search-fund searchers who work with an investment group to acquire a larger business and often own as little as 20% of the acquired business. The most recent post goes over my game plan for choosing a size of business to acquire and sources of funds. https://lnkd.in/g2qvH7Wv

“10 things to include in your pitch deck” “What not to say in your business pitch” “One should know how to give their investors an exit” There is a long list of rules for entrepreneurs who are looking for investors, yes they are important but before raising funds, you also be aware of what to look for in your customers. You want to find investors who share your vision, values, and goals. So, here are some tips on how to choose the right investors for your startup: 📌 Do your research: Before you approach any potential investor, do some background check on their portfolio, track record, reputation, and feedback from other founders. You want to find investors who have experience and expertise in your industry, who can offer valuable advice and connections, and who have a history of supporting and respecting their portfolio companies. 📌 Know your terms: Before you pitch your business, have a clear idea of how much money you need, how much equity you are willing to give up, and what kind of deal structure you prefer. You want to find investors who are willing to negotiate fairly and transparently, who understand your valuation and potential, and who respect your ownership and autonomy. 📌 Ask the right questions: During your pitch, don’t just focus on selling your idea, but also ask questions to the investors to gauge their interest, fit, and expectations. You want to find investors who are genuinely curious and enthusiastic about your business, who share your vision and mission, and who have realistic goals for your growth and exit. 📌 Trust your instincts: Trust your gut feeling and avoid investors who give you red flags, such as being rude, pushy, vague, or dishonest. Finding the right investors for your startup is not easy, but it is crucial for your success. Remember, you are not just looking for money, but for partners who can help you grow your business and achieve your dreams. Choose wisely and carefully, and don’t settle for less than you deserve. 💯 #investments #funding #entrepreneurs #debtfunding #founders #lfs

Dividends: The Sweetness and the Pain Venture capitalists don't really care about dividends. Dividends usually don't provide venture returns - they can only provide additional juice in a deal. Dividends can matter in downside cases, especially when the invested capital is large. Automatic dividends can have some nasty side effects if the company runs into trouble. Cumulative dividends also can be an accounting nightmare. It's best to avoid dividends in term sheets just to give the lawyers something to do. #VentureCapital #Dividends #TermSheet #StartupJourney #VentureInsights #Entrepreneurship #TermSheets #TohundGuide

Two founders faced a capital challenge, but their approaches led to different outcomes. ✅ Founder A went with a VC, giving up 20% ownership for a $5M investment. ✅ Founder B sold receivables, avoiding dilution and gaining flexibility. Passing finance costs to clients added $10-$15M, fueling growth, projects, and hiring. Founder B's company was valued at $75M, attracting VCs with a $25M offer. Remember, consider all capital options and seek guidance for success. #capitalchoices #entrepreneurship #workingcapital #vcs #venturecapital #founders

😊 Good afternoon, LinkedIn professionals! Let's delve deeper into our journey through company basics. Today, let's discuss the concept of authorized share capital. Ever wondered what authorized share capital is? and why does it matter for businesses? 🤔 Here's the scoop: 🔹Authorised share capital is the maximum value of shares a company can issue. It sets the limit on how much capital a company can raise from shareholders. 🔹 This limit serves as a safeguard, protecting shareholders from excessive dilution of their ownership stakes. 🔹 Companies can increase their authorized share capital if They need to raise more funds in the future. Offering flexibility for growth and expansion. 🔹 It's not just a formality Authorized share capital is a legal requirement for registering a company and issuing shares. In short, Authorized share capital plays a crucial role in shaping a company's financial structure and growth potential. Understanding its ins and outs is essential for entrepreneurs and investors alike! 💼💡 #AuthorisedShareCapital #BusinessFinance #InvestmentInsights #Business #Entrepreneurship #Leadership #Finance #Startups #SmallBusiness #Management #Investment #Success #CareerDevelopment

Over the last three years I've reviewed hundreds of cap tables. Here are my top 7 🚩's and how to fix them: 1) Dead equity: Make sure your articles of association and option agreements contain leaver clauses. 2) Advisors without vesting Criteria: Agree performance metrics up front and tie them to an equity incentive using options or growth shares. 3) Over-Diluted Founders: Good investors want founders to have sufficient skin in the game so think through your equity journey and don't be pressured into giving too much too soon. 5) Zoo of Micro-Investors: a messy cap table can be an administrative nighmare. Consider consolidating investors using a nominee structure. 6) Inadequate Employee Option Pool: Empower your team with equity incentives to attract and retain top talent. A typical pool size is anywhere between 10-15%. 7) Missing Documents or Unsigned Agreements: Don't leave room for misunderstandings. Document everything properly. Avoid these pitfalls to keep your startup on the path to success. Check out the carousel below for more insights on cap table red flags. #Startup #Entrepreneurship #investment

Dividends: The Sweetness and the Pain Venture capitalists don't really care about dividends. Dividends usually don't provide venture returns - they can only provide additional juice in a deal. Dividends can matter in downside cases, especially when the invested capital is large. Automatic dividends can have some nasty side effects if the company runs into trouble. Cumulative dividends also can be an accounting nightmare. It's best to avoid dividends in term sheets just to give the lawyers something to do. #VentureCapital #Dividends #TermSheet #StartupJourney #VentureInsights #Entrepreneurship #TermSheets #TohundGuide