Archives For financing

David  Gomez Linkedin 000dc53

One of my favourite films is Blade Runner. In this film, genetically engineered robots called “replicants” are so similar to human beings that they even have their own implanted memories. I felt fascinated by this idea and others similar in Blade Runner, like the unicorn dream. So when I heard about Hiyalife, a website where you can store your memories, I got immediately interested about it. Last week I heard that David Gómez, Hiyalife co-founder, came to my city to give a workshop for entrepreneurs. Therefore, I decided to attend the workshop and it really deserved applause. David told such good advice for start-ups entrepreneurs that I asked him for an interview to share with you. Continue Reading…

Chasing the Dream

Some business projects require exorbitant figures of funding in proportion to the entrepreneur capital. These projects are out of your reach, unless your father is a millionaire or you’re a genius. This idea seems obvious, but some entrepreneurs love their idea so much that they do not see it that way.

I remember an entrepreneur presenting his project in a forum of investors. He needed three million euros, because he needed to set up a manufacturing plant. Continue Reading…

Dr_Martens,_black,_old

It is said that a startup has two options: raising funding or bootstrapping. Bootstrapping is in reference to the famous saying “pull yourself up by your bootstraps”. Bootstrapping in business means starting a business with the very little capital that entrepreneurs have, managing their companies with a lot of creativity instead of money.

Nowadays, it is a pity that bootstrapping is not a choice for many entrepreneurs, but the only option they have, due to the difficulty to raise money. Continue Reading…

640px-Marco_Polo_traveling

Marco Polo, first entrepreneur who raised venture capital

Marco Polo, the Venetian merchant, who arrived to China in the thirteenth century, was one of the first entrepreneurs who got venture capital. He convinced several wealthy Venetians to finance his commercial expedition to Asia. Marco Polo promised that he would share his profits of this risky venture with them. These funders were a kind of precursors of the current venture capital, which main characteristics I describe below in a simplified form: Continue Reading…

What is Crowdfunding?

31 July, 2013 — 4 Comments
crowdfunding

Crowdfunding. Photo by Colbrain on Flickr used under a Creative Commons licence

Crowdfunding is the action, by which a person, company or organization asks a multitude of people to finance his/its projects via Internet, each of them giving a small quantity of money.

Some entrepreneurs and organizations have developed different crowdfunding platforms. They are web platforms that offer projects creators a display space to publish their projects in order to get financing. These platforms also allow the projects to use a secure payment page to ensure that the projects receive their money. In exchange, most platforms receive a commission based on the amount collected.

Which kinds of crowdfunding exist and what do the financial backers receive in exchange? Continue Reading…

Foto-Pello-Gamez

I interviewed Pello Gamez, one of three Geoactio’s entrepreneurs, who I met when they first launched their company. I negotiated Start Up Capital Navarra’s investment in their company. Since then, I have been witness to the positives changes in Geoactio, thanks to these entrepreneurs’ efforts, sacrifices and capacity to adapt to the market. Geoactio’s story is a good example of the difficulties which a start-up faces its first years and how its entrepreneurs overcame them.

Startup: GEOACTIO, Pamplona, Navarra, Spain.

Activity: Software and mobile applications development. Smart city and mobility projects. Smart bluetooth. Continue Reading…

The “time to market” or time to get into your market is a very important concept that affects startups. It has to do with the time it takes from product conception until the first sales are achieved.

Many startup entrepreneurs expect to sell in the first few days, but it usually will take months, in some cases many months, until the first sales are achieved. The reason is that many startups are created without having a product ready for sale. They are created just to finish the products and to sell them. When you launch a new product or service it requires time to make it known to customers and sell it. Continue Reading…

Photo of zizzybaloobah on Flickr

In business and investment the expression “cash is king” is widely used. This idea is the highest priority in terms of startup finance. A startup can assume that the first year will not bring benefits, provided it has clear when they will start. But what makes a high percentage of startups disappear shortly after its creation, is the red or running out of cash. Cash is one of the three legs of the financial plan, along with the income statement and balance sheet. This is most important in the case of startups. So, “cash is king”. Continue Reading…

Foto weareknitters.com

“We are knitters” is a company created in 2011 by two 25 year old entrepreneurs, Maria Jose Marin and Alberto Bravo. These entrepreneurs have the double merit of launching an innovative product that was originally traditionally-based and procuring prestigious investors.

They have recently published on their website http://www.weareknitters.com that their company has raises 150,000 euros from some investors: the venture capital firm Cabiedes & Partners and two business angels François Derbaix, Toprural.com founder and Yago Arbeloa, president of the Spanish Association of Investors and Internet Entrepreneurs. The new capital will be use to accelerate the company’s international expansion in Europe.

The company’s online shop sells kits with everything necessary to knit wool and cotton clothing such as sweaters, scarves, hats, etc. They also offer simple video tutorials to learn how to knit from scratch.

In my opinion the most interesting aspects about this company are: Continue Reading…

Some years ago, I developed a metaphor to explain to entrepreneurs how important it is to plan the financial needs properly.

In my opinion, creating an innovative company is like having a tub full of water. The water is like the company’s money, the initial financing which makes the start-up activity possible.

At the moment of creation, it is as if the plug was taken away and the tub begins to drain. Continue Reading…