Archives For Start Up

businessangels

Entrepreneur and business angel

In the beginning of the XX Century an angel was a wealthy person, who provided money for Broadway theatrical productions. The term angel began to be used in the USA in 1976 after a university publication reutilized it in reference to investors who supported entrepreneurs. Since then the term in the USA is angel investor, while in Europe we called them business angels.

These investors are essential in the financing of thousands of companies in the USA. In 2012 each of the 268,160 angel investors invested an average of $85.435 in a total of 67,030 companies. (35% of them startups). A total of 23,000 million dollars! The average angel deal size was $341,800 and the average equity received was 12.7%. Source: unh.edu

These dizzying figures don’t have anything in common with those in other countries Continue Reading…

Advertisements

What is Lean Start Up?

17 July, 2013 — 1 Comment
lean startup

Photo by John Fischer on Flickr used under a Creative Commons licence

It is a methodology for the creation of enterprises developed by the entrepreneur and consultant Eric Ries in his book “The Lean Startup” published in 2011. It has been a huge success among entrepreneurs, especially among internet entrepreneurs.

This methodology is based on the idea that a startup is an organization formed to search for a repeatable and scalable business model under conditions of extreme uncertainty.

The main point is to build a minimum viable product with basic features that are supposed interest to customers and launch it quickly to test if the hypotheses are true or not. By this way entrepreneur can learn a lot about the business, his products and his customers. Then, the entrepreneur decides whether to persevere or “pivot”, correcting some of the hypotheses.