Archive: startups
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Startup Insider: Investing Lessons From the Toast IPO
By Early Investing on October 4, 2021
Toast — a provider of hardware and software to restaurants — went public a week and a half ago at a roughly $30 billion valuation. But unlike most billion-dollar startups, Toast wasn’t on venture capitalists’ radar from the beginning. In fact, Toast didn’t receive any venture funding until four years after it was founded. Toast’s success demonstrates a few important truths about startups. They don’t need venture…
The Ideal Startup Portfolio Size
By Andy Gordon on September 29, 2021
Most meetings I attend aren’t very exciting. But yesterday’s was fascinating because we discussed one of the most important questions an early investor can ask. What is the ideal number of companies for a successful startup portfolio? Many opinions were put forward. So what…
The Perfect Environment for Startup Investing
By Adam Sharp on September 28, 2021
While you all know I’ve been a bit frustrated with the high valuations of startups today, there is a lot to be said for investing in this asset class in our current environment. Many bonds are yielding -5% after inflation is…
Startup Investing in 2014 vs. Startup Investing in 2021
By Adam Sharp on September 21, 2021
When I first started investing in startups in the summer of 2014, seed-stage deals were typically valued between $4 million and $5 million. I remember seeing a few deals at $1 million and a few more at $2 million and $3 million. Today I’d estimate the…
Startup Insider: Mailchimp Proves There Are Many Ways for Startups to Succeed
By Early Investing on September 20, 2021
Last week, financial software giant Intuit confirmed it was buying Mailchimp — an email marketing/content tool — for a whopping $12 billion. The buyout proves there are lots of different ways for a startup to succeed. But it also raises a lot of questions — namely,…
3 Qualities to Look for in a Startup Before You Invest
By Allison Brickell on September 15, 2021
If you’re at all new to startup investing, you might feel a little overwhelmed. I know I’ve felt that way. It’s one thing to invest in the stock market. At least there, you’re investing in a public company that has years of financial data…
Which Platforms Have the Most Successful Deals?
By KingsCrowd on September 8, 2021
Editor’s Note: At Early Investing, we research startups that are raising money on all sorts of crowdfunding platforms. Some of the most common platforms include Wefunder, Republic, StartEngine, Netcapital and SeedInvest. But with so many platforms out there, it can be overwhelming…
How Early Investors Can Profit From the Unicorn Explosion
By Andy Gordon on September 1, 2021
Unicorns used to be a rare breed. Not anymore. When Aileen Lee of Cowboy Ventures first coined the term “unicorn” — referring to startups worth $1 billion or more — in 2013, she identified 39 unicorns. The vast majority were valued below $5 billion. Apart from…
Startup Insider: A Shocking Amount of Exit Experience
By Early Investing on August 23, 2021
For years, venture capital (VC) firms have favored founders who have experience leading companies to successful exits. “Look for founders with prior exits,” VC investors say. “They know what they’re doing.” But Drake Dukes, co-founder of data company Gravity, analyzed 992 unicorn founders and…
Why the “Friends and Family” Round Needs to Change
By Vin Narayanan on August 18, 2021
I am a true believer in the American Dream — the idea that anyone, regardless of race, social class or birthplace can find success in this great country. I believe because I’ve witnessed my family’s journey. My dad immigrated to the U.S. from India 50 years…
Envisioning a Better System for Women’s Health
By Allison Brickell on August 11, 2021
As the senior editor at both KingsCrowd and Early Investing, I do a lot of reading, editing and research on startups. At KingsCrowd, I edit dozens of analyst reports on a regular basis. These reports provide detailed analysis of…
Startup Origin Story: Univoice
By KingsCrowd on August 4, 2021
Editor’s note: A founder’s origin story is incredibly important. It’s essential to understand why a founder started their company and how they envision the future when you’re considering their company as a potential investment. It also helps you understand the advantages or disadvantages they bring to the table.
The Inside Scoop on “Outside” Founders
By Andy Gordon on July 21, 2021
Ali Tamaseb has written an interesting book called Super Founders. Super founders are the founders of unicorns — aka startups valued at $1 billion or more. These days, $1 billion is the price of entry to what used to be a very…
Startup Insider: Reimagining the Private Markets
By Early Investing on July 19, 2021
Scott Kupor is one of the sharpest minds in venture capital. He’s the managing partner of Andreessen Horowitz and the author of Secrets of Sand Hill Road: Venture Capital and How to Get It. Kupor testified before Congress earlier…
Why CPG Startups Cost More Than Pharma Startups
By KingsCrowd on July 14, 2021
Editor’s note: Our friends at KingsCrowd produce a ton of data on startups. This week, they created a fascinating chart (see below) exploring the relationship between product type and funding stage. We’re sharing this chart with you because it provides useful insights that can help…
Startup Insider: Filling the Biopharma Funding Gap
By Early Investing on July 12, 2021
There’s a funding gap in medical research known as the “valley of death.” When research begins, it’s funded by government grants and nonprofits. But drug research and development is very time-intensive. It typically takes around 10 years to bring a drug to market — and nine…