Monday, March 12,
2018 10.15AM / Paul Smith, Hyperloop One
I've spent this morning with my head
in my hands. Yet another early-stage tech startup has been screwed over by bad
advice from people claiming to represent the sector.
So this week I'm going to write a
post about bad actors in tech communities. I'm tired of seeing opportunist
digital agencies, business advisers and "angels" hurt early-stage
business because they literally have no idea how the fundamentals work.
Startup founders - when it comes to:
- incorporation (how many shares to
issue, how much they're worth)
- raising investment (whether you
should raise at all, how much to raise, what the valuation should be)
- giving away any amount of your
equity (to advisors, agencies, staff, other founders)
....don't guess, don't make it up,
and *always* get a third (and fourth) opinion; make sure at least two of these
opinions are from other founders who have successfully launched and/or raised
money and further on in their journey.
Founders rarely say no when other
founders ask for advice.
There's no right way to launch a
successful tech business - but there absolutely is best practice.
About Paul Smith
A consistent, driven entrepreneur
with a track record in business operations, senior management, business
development and project delivery; a longstanding mentor of technology founders
across Europe. He can be reached via https://www.linkedin.com/in/paulsmithho/
Activity in the Tech Start-up Space