Comments on: Capitalization Strategy: Begin with the End in Mind http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/ Legal and Business Issues for Entrepreneurs and Emerging Companies Wed, 10 Mar 2010 22:34:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: AlphaTech Counsel Blog | Overview of the Private Offering Process http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/#comment-50 AlphaTech Counsel Blog | Overview of the Private Offering Process Thu, 18 Feb 2010 22:39:12 +0000 http://alphatechcounsel.com/blog/?p=82#comment-50 [...] Prepare business plan, including an executive summary and a long term capitalization plan [...] [...] Prepare business plan, including an executive summary and a long term capitalization plan [...]

]]> By: Matt Storms http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/#comment-41 Matt Storms Wed, 21 Oct 2009 02:27:16 +0000 http://alphatechcounsel.com/blog/?p=82#comment-41 AK, Congratulations on the grant and the development team. I touch on some of the points you're looking for in previous articles I've written for WTN--you can look on my bio page for hyperlinks (http://alphatechcounsel.com/storms-bio.html). Also, I'm reading currently an interesting book called, "Raising Venture Capital for the Serious Entrepreneur" (http://www.amazon.com/Raising-Venture-Capital-Serious-Entrepreneur/dp/0071496025 ). It includes many practices that I counsel clients on and thus far even a few strategies and perspectives I haven't historically considered. You might find it helpful. Once you have the background understanding that articles and books can bring you, you probably should work with others to implement and apply the tools and best practices to your particular circumstances. These "others" can include experienced entrepreneurs, a mentoring angel investor, attorneys (like me), and other advisory board members. Good luck and let me know if I can be of further help. Matt AK,

Congratulations on the grant and the development team. I touch on some of the points you’re looking for in previous articles I’ve written for WTN–you can look on my bio page for hyperlinks (http://alphatechcounsel.com/storms-bio.html). Also, I’m reading currently an interesting book called, “Raising Venture Capital for the Serious Entrepreneur” (http://www.amazon.com/Raising-Venture-Capital-Serious-Entrepreneur/dp/0071496025 ). It includes many practices that I counsel clients on and thus far even a few strategies and perspectives I haven’t historically considered. You might find it helpful.

Once you have the background understanding that articles and books can bring you, you probably should work with others to implement and apply the tools and best practices to your particular circumstances. These “others” can include experienced entrepreneurs, a mentoring angel investor, attorneys (like me), and other advisory board members.

Good luck and let me know if I can be of further help.

Matt

]]> By: AK http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/#comment-40 AK Wed, 21 Oct 2009 00:45:02 +0000 http://alphatechcounsel.com/blog/?p=82#comment-40 Matt, I am currently raising funds for a company that has a grant in hand and a well established development team on board. We want to employ best-practices for creating the structures that value each investment, describe to investors exactly what they are getting, dilute investments in the future should more funding be required, and more. Can you point us in the direction of these best-practices? AK Matt,

I am currently raising funds for a company that has a grant in hand and a well established development team on board. We want to employ best-practices for creating the structures that value each investment, describe to investors exactly what they are getting, dilute investments in the future should more funding be required, and more. Can you point us in the direction of these best-practices?

AK

]]> By: Marty http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/#comment-33 Marty Wed, 19 Aug 2009 23:33:05 +0000 http://alphatechcounsel.com/blog/?p=82#comment-33 Gayle, Regardless of the fluid operation of any startup, some capitalization must have happened for you to be active in the organization. All startups are volatile and their processes fluid – by definition all startups must be intelligent and agile, if they are to succeed. A myriad of forces come into play that cause envisioned revenue streams to require longer than expected periods to develop, other revenue streams– some even unplanned present themselves. Therefore the capitalization portion of the business plan and the general business plan are by nature and by necessity living documents that require constant maintenance – the making of necessary adjustments (usually meaning correction) to the past thought processes that created the current version of the plans… Successful startups and those that survive the startup phase, must diligently manage the continuous updates mandated by inevitable change. Marty – CEO University of North America (a new startup) Gayle,
Regardless of the fluid operation of any startup, some capitalization must have happened for you to be active in the organization. All startups are volatile and their processes fluid – by definition all startups must be intelligent and agile, if they are to succeed. A myriad of forces come into play that cause envisioned revenue streams to require longer than expected periods to develop, other revenue streams– some even unplanned present themselves. Therefore the capitalization portion of the business plan and the general business plan are by nature and by necessity living documents that require constant maintenance – the making of necessary adjustments (usually meaning correction) to the past thought processes that created the current version of the plans… Successful startups and those that survive the startup phase, must diligently manage the continuous updates mandated by inevitable change.
Marty – CEO University of North America (a new startup)

]]> By: AlphaTech — The Entrepreneurs' Counsel™ | AlphaTech Blog http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/#comment-22 AlphaTech — The Entrepreneurs' Counsel™ | AlphaTech Blog Fri, 17 Jul 2009 22:10:48 +0000 http://alphatechcounsel.com/blog/?p=82#comment-22 [...] of the long term capitalization strategy. I talk about the long term strategy in my earlier post, Capitalization Strategy: Begin with the End in Mind. As mentioned in the previous paragraph, a common problem that some entrepreneurs face is having [...] [...] of the long term capitalization strategy. I talk about the long term strategy in my earlier post, Capitalization Strategy: Begin with the End in Mind. As mentioned in the previous paragraph, a common problem that some entrepreneurs face is having [...]

]]> By: Matt Storms http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/#comment-21 Matt Storms Wed, 15 Jul 2009 05:01:23 +0000 http://alphatechcounsel.com/blog/?p=82#comment-21 Gayle, I know it can be time consuming to put together, but your capitalization strategy based on your desired exiit likely will impact decisions both in the short and long term. For instance, it can impact your choice of entity when setting up, the amount of and timing for when you seek investments (and from whom), valuation, how aggressive you can and need to be on development side, etc. I'm not suggesting that your plan won't change based on real life events (e.g., not obtaining the size financing you expected when you expected or being presented an unanticipated opportunity). As with your business plan, your capitalization plan and strategy will likely evolve over time. But it can helpful for those who go through the exercise of developing one. Matt Gayle,

I know it can be time consuming to put together, but your capitalization strategy based on your desired exiit likely will impact decisions both in the short and long term. For instance, it can impact your choice of entity when setting up, the amount of and timing for when you seek investments (and from whom), valuation, how aggressive you can and need to be on development side, etc. I’m not suggesting that your plan won’t change based on real life events (e.g., not obtaining the size financing you expected when you expected or being presented an unanticipated opportunity). As with your business plan, your capitalization plan and strategy will likely evolve over time. But it can helpful for those who go through the exercise of developing one.

Matt

]]> By: Gayle http://alphatechcounsel.com/blog/2009/capitalization-strategy-begin-with-the-end-in-mind/#comment-20 Gayle Tue, 14 Jul 2009 23:21:23 +0000 http://alphatechcounsel.com/blog/?p=82#comment-20 Matt How realistic is it though to have a detailed capitalization strategy for a company that is literally just starting up? Speaking from experience as I've gone through this process before, I don't know how my current company is going to be funded in the next significant financing, let alone where my financing in 2012 is going to come from. Gayle Matt
How realistic is it though to have a detailed capitalization strategy for a company that is literally just starting up? Speaking from experience as I’ve gone through this process before, I don’t know how my current company is going to be funded in the next significant financing, let alone where my financing in 2012 is going to come from.
Gayle

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