William Rosellini

Solutions to 3 Major Barriers Every Startup Will Face

Any founder or decision-maker knows there are obstacles at nearly every turn when starting a new company from the ground up. The early stages are critical for so many reasons and often leave you juggling everything from your human resource issues, to technology, and all that in between. While all are imperative to your success, you cannot afford to go wrong on these 3 major barriers that every startup with inevitably face — understand what they are, how they are connected, and how you can resolve them.

1. Valuation of your business

There are various points to take into consideration when valuing your startup, and it can prove particularly challenging on a newer venture when you’re unsure of your worth. To start with, you want to look at the following methods:

  • Pre-money valuation refers to determining a company’s value before receiving any external financing in its earlier stages — to work out using the Berkus Method, try our Seed Stage Valuation Calculator
  • Venture Capital valuation can be done using a few methods — use any one of these four valuation calculators that include one for share dilution, and another for multiple rounds of funding.

 

2. Wrapping your head around securities laws 

Which are relevant to your business? If you lack the know-how or time to crack the books yourself, then you’re in luck — we’ve rounded up these 8 governing laws and regulations that could impact your startup. Venture capitalists are regulated by the SEC and FINRA it’s up to you to understand which laws can affect your funding and how.

 

3. Compiling everything you need in your PPM 

Your Private Placement Memorandum has to give prospective investors all the information they need to know about your business and its potential before raising capital. Save yourself the thousands of dollars it costs to draw one up and use our proven PPM Templates instead. If you are unsure which Regulation D offering is right for you, you’ll want to read this first. 

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