Angel investors are wealthy individuals who put money into startups early on, and receive part ownership of the business in return, which usually comes in the form of equity. Angel investors also advise and assist the founder in growing the startup so that it can begin to generate revenue quickly and reliably.

Valuation is the process of determining the current or future value of a business. There is no single method for calculating valuation, but most approaches draw on factors such as a company’s management team, capital structure, and future earnings potential.

If you’ve got a pitch deck and a great idea, there’s nothing to stop you reaching out to investors for the capital boost that will get your start-up to the next stage. 

Co-founder disputes are cited as the reason for around 65% of startup failures, according to research by Harvard Business Review. This makes the division of equity between co-founders a key decision that can make or break a startup.

Everything feels possible when you’re starting up a new business. You have a great idea, trusted co-founders, and everyone is cheering you on. Slowing down to make sure all the legal documents are signed and sorted can feel like an unwelcome delay, but it’s a vital part of making sure you, your co-founders and your business are protected for the future.  

The principal benefit of having an early-stage fund in your capitalisation table is that it can help your startup to raise investment. An early-stage fund investor represents an important vote of confidence in your business.

Having a long-running technical position in your start-up might sound like something that’s only necessary for more established companies. Why hire a member of staff when you can outsource software development? In reality, there’s much more to start-up tech roles than just coding. The right person will provide a range of essential skills that will grow and evolve alongside your company. 

Building a business around monthly recurring revenue (MRR) makes growth more predictable, and provides investors with a useful metric for understanding trends in profitability and cash flow. This makes the MRR business model popular with technology startups that offer software as a service (SaaS). 

After securing smart capital from a platform like Pitchdrive, startups can seek a financial mix that includes a combination of smart and dumb money, enabling them to raise capital faster.