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:
Chamber Announces New Board Leaders, Members
Staff Reports
-
Jan 24, 2023
|
|
Shopping Center Planned In Leland, Could Include Publix
Staff Reports
-
Jan 23, 2023
|
|
Potential Tenants Already Interested In Leasing Parts Of Former PPD Building, Officials Say
Cece Nunn
-
Jan 23, 2023
|
|
Commercial Real Estate Firm Announces Hirings, Promotions
Staff Reports
-
Jan 24, 2023
|
|
County Moves To Purchase $1.5M Facility, Approves $5.6M Elections Building
Johanna F. Still
-
Jan 24, 2023
|
Plans for major improvements fell by the wayside, delayed by life and the home’s overwhelming degree of deterioration, which placed the prop...
Boombalatti’s Homemade Ice Cream became a local favorite when it first opened in The Forum on Military Cutoff Road in 1999. When Wes and Kri...
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...
The 2022 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.