Tag Archives: Fundraising

15% is Bigger than Zero

We are big fans of bootstrapping here at Tech-Rx! Not only does it allow you to maintain direction for your company and focus on the product, but it delays the need for outside investors as long as possible. Every time you trade cash for company equity, you are decreasing your amount of ownership in the company you built from the ground up. But at one point you are going to need outside funding if you are planning to grow (unless you have a hefty inheritance in your back pocket). Continue reading

AngelList Fires Back On SEC

You may have noticed AngelList’s call to action against the latest SEC JOBS Act ruling. AngelList agrees with our initial assessment of the ruling but read on for their deeper analysis of how the law will affect startups. AngelList proposes that the JOBS Act will defeat their original goal of public fundraising for startups. Reason being that the new rules will be so difficult to follow that startups will solely raise money privately. And with so many startups fundraising privately, they are lowering their chances of raising any money at all. Or they could always find the cash somewhere that is not tracked by the SEC, but does it really need to get to that point? We agree with AngelList that the JOBS Act will result in unintended consequence such as spelling out the failure of thousands of startups – as a result, further stunting American job growth. We agree that what is called for in the JOBS Act is simply unfeasible. We agree with AngelList’s proposed ideas on how to go about investment tracking. The SEC is looking for feedback on potential consequences of their proposed rules. Share your opinion now as there are only 9 days left to comment! What do you think could be possible negative consequences as a result of the JOBS Act? Share your comments here. -Nikki Griggs, Business and Marketing Associate, Tech-Rx

The ACA Warns the SEC

In a recent article by Silicon Valley Business Journal‘s Cromwell Schubarth, an unexpected consequence to last week’s SEC decision has been unearthed. In response to last week’s decision to end the ban on general solicitation, the Angel Capital Association issued a warning. The group warned that many of its thousands of investors will stop investing if forced to submit financial documentation to verify their accreditation as investors. This is an example of another well-meaning but unrealistic program. Contrary to the original intent of the JOBS act, this may be a detrimental repercussion to the startup community. Read the full article here.

3 Essential Pitching Tips

We get it. Pitching is hard. However, some of us get so worked up about selling their company that we forget the very essential elements to successful pitching, such as knowing your audience! Below are a few unbreakable rules when it comes to pitching.

Know your audience. At networking events, there are usually a number of investors, employees, competitors and advisors. Know who you are pitching and tailor your pitch specifically to your listeners. Trying to pitch each one with the same story can become incredibly long-winded, which brings us to our next point.

Keep it short. Never underestimate the simplicity of the elevator pitch.  Stick to less than 90 seconds. By doing this, you lessen the risk of rattling off irrelevant details that are bound to put your audience to sleep! But you know what is likely to sustain their interest? A good story.

Tell a story. Sharing your company story shows that you are personally connected to the problem you are looking to solve. Not only does it show a personal connection but it also demonstrates that you are the right person for the job.

Are there other rules that you pitch by? Or even better, are there rules that you refrain from?

-Nikki Griggs, Business and Marketing Associate, Tech-Rx