Get Funding
Finding the money is one of the hardest tasks for anyone starting a company. In this section, we'll describe the major funding options startups have, how they differ, and how to prepare to raise money.
Funding Basics
There are lots of options for funding a startup, with pros and cons to each. These articles, while focused primarily on the benefits and costs of VC funding and bootstrapping, also cover the basics of equity financing, government grants, and more.
The art of raising venture capital
by Garage Technology Ventures Founder Guy Kawasaki | Sep 2008
Fundraising Survival Guide
by Y Combinator Partner Paul Graham | Aug 2008
How to fund a startup
by Paul Graham | Nov 2005
3 ways to fund small businesses
Interview with startup experts Jeff and Rich Sloan
Funding a software startup
Dec 2007
Writing a compelling executive summary:
by Garage Technology Ventures Founder Guy Kawasaki | 2007
Myths of bootstrapping: a VC’s point of view
by Matt Winn | Sep 2007
Rules for raising capital
by Christine Comaford-Lynch
Microsoft small business group video on Finding Funding
Oct 2007
UC Santa Barbara’s Technology Management Program video on bootstrapping
Aug 2008
Funding from VCs
Raising money from venture capitalists is the traditional way to fund startups, especially those that require substantial investment before selling a product. Companies with low startup costs, such as services delivered through the Web, may be self-funded or debt-financed, but VC funding is still the "classic" way to pay for a startup. These articles describe the dos and don’ts for working with VCs.
Three questions you shouldn’t answer from a VC
by Rick Segal | Jul 2008
10 questions you should ask a VC
Jan 2005
VC Funding 101
by Foundation Capital General Partner Paul Holland
Ask the VC blog has many posts regarding VC (and other types of) funding
by Brad Feld and Jason Mendelson | Sep 2008
7 Reasons Startups Should Not Take VC Funding
by Greg Gianforte, CEO of RightNow Technologies and a serial entrepreneur | Aug 2008
How to find the right VC firm
by Tom Taulli | Jul 2008
MoneyTree’s quarterly study of VC investment activity (Some links require registration)
2008
How to approach a VC firm
Jun 2008
VC Secrets Revealed
by Ann Winblad | 2007
Tips on what VCs are looking for
by Seedcamp | Jul 2008
VC archetypes you’ll want to avoid
by Serial Founder Larry Chiang | Jan 2008
FAQ about venture capitalists
by The National Venture Capital Association
TiECon 2007 interview with Mayfield’s Managing Director Navin Chaddha
May 2007
Funding from Angels
Angel investors are, broadly defined, high net-worth individuals who invest in entrepreneurial companies, usually at an early stage. They're similar to VCs in that they provide cash to young companies in return for equity, but typically invest in smaller amounts ($25K to $250K instead of $1M to $10M). These articles outline where to find angels, how to prepare for meeting with them, and what they’re looking for in companies.
Angels in America: a select sampling of angel investment resources
Jul 2005
How-to guide to angel investors
Angel investing revealed
podcast featuring Ron Conway and Mike Maples | Jan 2008
Business 2.0 on how to find an Angel
by Michael V. Copeland | Feb 2006
6 tips for finding angels
by Susan Schreter
How to prepare for meeting an Angel investor
by Susan Schreter
Interview with angel investor Dave Berkus
Nov 2007
AlwaysOn interview with Ron Conway and Tim Draper on what angels want
Dec 2007
Government Funding for Startups:
Many countries have a range of government services available to help entrepreneurs start businesses, including loan programs and outright grants of money. Often, government funds will have so few strings attached that anyone eligible should seize them whenever possible. These articles point to government resources in the US and around the globe.
US Government’s Small Business Administration startup funding for small businesses
The European Commission’s Enterprise and Industry portal for small and medium enterprises
European Union Grants Advisor
Canadian Government’s programs and services for financing new businesses
The Australian Government’s business gateway to grants and assistance
Taiwan’s Institute for Information Industry program
Business Models
Your great idea isn’t truly great until you can figure out how it’ll make money. Any investor, aside from your mother, will insist on seeing a believable business model that proves you’ve targeted the right customers with the right solution at the right time and in the right way to make a healthy profit. These articles outline different types of business model for different types of businesses.
Microsoft ISV/Software Solutions Competency: Partner Pathway to Business Performance
by IDC | Oct 2006
The new business model
by Guy Kawasaki | Oct 2004
A blog post on how to pay the bills before you get funded
by Steve Spalding | Mar 2008
One VC’s rant on the “business model, schmizness model”
by Peter Rip | Jul 2006
An overview of software pricing for startups
by Dharmesh Shah | May 2006
Managing the Digital Enterprise
by North Carolina State University | 2008
Post on 14 Business models for free content
by Chris Anderson’s | Sep 2008
The Pitch
Your business model is important, but no investor will ever see it if you don’t first capture their interest with a compelling, concise, easily understood description of the business. These articles outline the components of an effective elevator pitch—a 60-second-or-less description of what you’re offering, why customers would want it, who would pay for it, and the size of the market.
Tips for a Good Pitch
by then-VC Heidi Roizen | Jan 2002
Garage Technology Ventures’ Perfecting Your Pitch
2006
National Federation of Independent Business’s article on making elevator pitches work for you
by Steve Strauss | Feb 2005
Businessweek on the 60-second pitch
by Carmine Gallo | Jun 2007
Writing an effective executive summary
by Lars Leckie of Hummer Winblad
Ross Vickery from Greymouse Education explains how an elevator pitch can help your business succeed
Jul 2007
The content about what makes a good elevator pitch is good, but the delivery is awful on CNBC’s business reality show "Dragon's Den”
Sep 2006
Startup Nation offers 10 steps to a great elevator pitch
Aug 2006
Great post on elevator pitches
by EntrepreneurBlogSpace | Jan 2008
A conference table of investors describes aspects of elevator pitches that capture their attention
Feb 2007
Writing a Business Plan
Once investors are hooked on your pitch, you’ll need to supply the details with the business plan. A typical business plan focuses on the company’s unique product or service, the target customers, how the company will market to them, and how it will make money—in other words, the business model. These articles cover why the business plan matters and outline elements of a successful plan.
So You Wanna Write a Business Plan
Guy Kawasaki’s interview with Tim Berry, CEO of Palo Alto Software, which makes business planning software
Jul 2007
The Zen of Business Plans
by Guy Kawasaki | Jan 2006
The SBA's Small Business Planner
The basics and elements of business plans as well as resources for writing them
UC Berkeley Haas School of Business’ Entrepreneurial Best Practice Series Powerpoint on how to write a great business plan
Feb 2008
American Express Small Business’s series on creating an effective business plan
A video featuring British business plan/fundraising expert Andrew Millet on the 8 steps in creating an effective business plan
Sep 2007
Business Plan World video on how to edit a business plan in Excel
Jan 2007
Introduction to Writing a Business Plan
University of Washington Center for Student Entrepreneurship | 2007
Creating a Financial Model
Business models are an essential planning tool for any startup, but veteran entrepreneurs know that cash is always king. The financial model shows investors how the company will manage its cash flow and when future cash infusions may be needed. These articles offer great advice for how to plan a financial strategy, what an effective financial model should cover, and how that model fits into the fundraising process.
SmartMoney.com’s Starting Up column: How Much Money do I Need?
by Diana Ransom | 2008
A Powerpoint on the basics of a financial model as part of Stanford University’s Technology Venture Formation class
by mark Leslie, of Leslie Ventures | Aug 2006
Peter Kent’s financial modeling for startup companies, again in association with Stanford’s Technology Venture Formation program
by Peter Kent
The truth about financial models
by Momentum Venture Management’s Managing Director Stuart MacFarlane | Sep 2007
