Raising money Archives - The Grassy Road

Stop focusing on your startup valuation!

It never ceases to amaze me how hung up entrepreneurs get on the valuation of their startup as they raise money. It came up in a coaching session again yesterday. In the abstract yes, valuation matters. It tells you how much of your company you are going to sell in order to raise money. It sets a baseline for you which you will (hopefully) exceed on your next raise. It's a validation that your work has value. But it is NOT a measure of pride, or ego, or size. Your [...]

By Penny Herscher|2020-06-17T11:18:17-07:00June 17, 2020|Leadership|Comments Off

So you want to raise money – chose your investor carefully

At least once a week I take a call, or a coffee, with an entrepreneur who wants advice on how to raise money. We talk about her product and market, the stage of her business, how good is her story and what her vision is. And then we talk about the tactics of raising money. How to get a warm intro to reputable investors, how to think about angel vs. seed vs. venture, how much to raise, what a strong pitch looks like - the usual tactical coaching. Yesterday I [...]

By Penny Herscher|2019-01-04T09:59:20-08:00October 27, 2018|Career Advice|Comments Off

How does your investor make money?

So you want someone to give you $100,000? $1,000,000? How does that person or firm make money? Too often I review business plans which have a great idea, a huge market, but no viable business plan that explains how the investor makes a return. I saw two this week like this (one in the US, one in Israel). Terrific technology ideas, potentially large markets, enthusiastic smart young teams but no P&L, no future financial plan and no discussion of current valuation, or even readiness to discuss it. Before someone other [...]

By Penny Herscher|2019-01-04T10:00:25-08:00August 2, 2018|Career Advice|Comments Off

5 reasons it’s critical to truly understand your P&L

In the last month I have had the experience of three small business leaders talking to me about their P&L in moment-in-time terms. Something like this... for this quarter (or this year) we'll make $X, we spend $Y less than I thought so we're $Z ahead. Usually followed by why $X and $Z are so great, and how they'll spend those extra dollars they are ahead, or why their company is successful as a result. Naive. Unless you have a steady business that has been the same for a while, [...]

By Penny Herscher|2019-01-04T10:12:19-08:00July 20, 2017|Leadership|0 Comments

How 2016 rocked my world as I talked with women entrepreneurs

I am more convinced than ever that there is a bright future for women entrepreneurs and 2016 proved it to me! I stepped back from being a full time CEO a little more than a year ago. It was time, for family reasons, and I set out to change my life. I still work (I serve on two public company boards) but I decided to spend a great deal more time with my father and my family than I have ever been able to do before, and to prioritize my [...]

By Penny Herscher|2017-12-10T12:01:17-08:00January 4, 2017|My Personal Journey|0 Comments

Venture Capital Is Not All Equal

Like people, VCs come in all styles, so here are 5 characteristics to consider as you interview potential investors.If you want to raise venture capital to fund your new company and your great idea, plan out your vetting process first, because all VCs are not the same. Some are really helpful, but some are horrible and damaging to your company. Pick someone who has the same Vision and Values as you. You are (hopefully) in your venture because you believe you can change the world (if you are doing it to get rich, stop now, because [...]

By Penny Herscher|2020-06-17T08:38:54-07:00December 16, 2014|Leadership|0 Comments