Much need blog post!

The growth of knowledge I’ve acquired in these last months has been both rewarding and frustrating. Sifting through all of the jargon is not an easy task. I’m hopeful I can give back to the startup community and teach some of what I’ve learned.

The first book I recently read is Brad Felds’ book called “Venture Deals: Be Smarter Than your Lawyer and Venture Capitalist. here is a short link to this book.

The 2nd book I have read (not finished yet) is called “How to Create the next facebook” and can be found here. Tom Taulli has put a wide variety of information in this book and I highly recommend both of these books.

The material in these books has been great.

I’ve made a great new connection with @smarkowitz who was founder. He’s an excellent angel and mentor to work with. I highly recommended him. Its very strange how connections are made. Steve is the brother of Roger and I’ve been hearing about Steve for years from his brother. Roger is one of my clients and his company uses a product I created daily. Angels and connections can come from all sorts of places and you have to keep your ears open and continuously open up doors with networking.

Steve shared which is AngelList. A great group of people lead by @davemcclure He explained many aspects of the startup process and encouraged me to get my 12 slide Deck Together for my next pitch. I pitched him via skype and learned a lot from that pitch. He also explained details about convertible Notes and how they have a cap. This knowledge made me less scared of incubators and organizations like 500 startups and Angelist. All along I was worried about selling out a huge equity portion but this investment vehicle helps with this process. Its explained in both Brad and Tom’s books.

My actual startup has made a lot of progress also. We don’t have a prototype yet but each day that goes by we get closer.My conclusion related to my own startup is “I need a prototype with 1000 users and feedback” This is no easy task.

If I attempt to get funding before this hurdle I’ll be forced to give away too much equity in my company. But its a real balance act is knowing what features to leave out and what features to put in. I’m really close to finalizing some very important things in the software and Freezing the feature set.

I have a great team of coders and mentors spread out all over the world. Many of these people I’ve met through twitter searches and finding like minded interests through blogs and forming connections.

As of this date I haven’t accepted any money from a single Angel although its been offered. I turned down a sizable sum of money with a 40% straight equity arrangement. Remember when you accept money this money comes with strings attached and new relationships. It just wasn’t the right fit.

I know for sure without a doubt that my startup is going to launch and when it does it will not be a blip on the radar. I say this with a biased opinion but I truely believe nobody has attempted a software product like we are creating in a lot of years.

Here is a graphic of a brain storming session related to my startup. This is NOT the product, its merely a glimpse into some of the features we are working on and thinking about as well as connections. YES I know its too much. But as Tom’s book says, you might as well go for a 2 billion dollar company and end up with a 50 million dollar company. Is that all bad? The founder of this 50 million dollar company should be able to escape with 2-3 million and gain a healthy living while doing this.

This road is not my plan. My plan is much grander and bigger. And like other startup founders before me I have many road blocks in my way.

~ by Mike on November 16, 2012.

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