Category Archives: Start-up Finance

BusinessWeek: Structuring a Business with Investors in Mind

Posted on February 22, 2012 | Leave a comment


In the early days of starting a business, you might be tempted to gloss over ownership structure, equity stakes, and other seemingly boring details. After all, you might think, as long as you keep taxes low, paperwork uncomplicated, and partners motivated, better to deal with the big stuff first. But these decisions can have a significant cost down the road, particularly for entrepreneurs who seek outside investors.  Read more of my latest column at businessweek.com

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Posted in BusinessWeek, More on Start-ups, Small Business, Start-up Finance, Uncategorized

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BusinessWeek: Get your personal finances in order before startup

Posted on November 30, 2011 | Leave a comment


Aspiring entrepreneurs preparing to start businesses will find that savings, credit access, and credit scores matter more than market research and investor presentations

Read my latest story for BusinessWeek

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Posted in BusinessWeek, Print, Small Business, Start-up Finance, Uncategorized

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BusinessWeek: Don’t undercut your equity stake

Posted on August 12, 2011 | Leave a comment

By Monica Mehta

After a decade’s lull, the IPO is back, stoking dreams of entrepreneurs looking to cash out. Yes, dramatic market swings have changed some game plans recently, but in the first two quarters of 2011, 79 companies issued initial public offerings generating $24.3 billion, more than double the amount raised in the same period last year, according to PricewaterhouseCoopers. Often overlooked by newbies: By the time a company is ready to go public, the founders usually have diluted their personal ownership stakes considerably through previous financing rounds.

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Posted in Angel Investors, BusinessWeek, Finance, More on Start-ups, Print, Private Equity, Small Business, Start-up Finance, Uncategorized

BusinessWeek: Raising Seed Capital Now

Posted on February 18, 2011 | Leave a comment

Investors and entrepreneurs who won at the fundraising game during and after the Great Recession offer advice on landing equity money

By Monica Mehta

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Posted in Angel Investors, BusinessWeek, Finance, More on Start-ups, Print, Private Equity, Small Business, Start-up Finance

BusinessWeek: Raising Capital With Convertible Notes

Posted on January 25, 2011 | 1 comment

Converts look like equity, but taste like debt. To serial investors they’re brussel sprouts. But to certain entrepreneurs and angels, they’re what’s for dinner.

By Monica Mehta

(Read the full story)

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Posted in BusinessWeek, Finance, Print, Private Equity, Small Business, Start-up Finance

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ABC News Video: Borrowing money from friends and family

Posted on July 8, 2010 | Leave a comment

ABC News

Small business finance expert Monica Mehta of Seventh Capital talks about how to borrow money from friends and family for a small business, without loosing your friends and family.

Watch the Video

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Posted in ABC News, Finance, Small Business, Start-up Finance, Video

BusinessWeek: Post-Crisis Equity Financing

Posted on April 20, 2010 | Leave a comment

Bloomberg BusinessWeek

By Monica Mehta

Entrepreneurs seeking early-stage capital must rethink strategies to suit investors’ expectations. HitFix shows how the landscape has changed. Venture capital returns over the past decade deserve two thumbs down. (Read More)

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Posted in Angel Investors, BusinessWeek, Finance, More on Start-ups, Print, Private Equity, Small Business, Start-up Finance

BusinessWeek: Startup Solutions – Dividing the Equity

Posted on June 5, 2009 | Leave a comment

BusinessWeek SmallBiz

By Monica Mehta

Building a business is not unlike baking a pie, except that the ingredients aren’t sugar and flour but intangibles such as a great idea, strategy, and execution (cash helps, too). But with multiple founders showing up with different contributions at different times, it’s hard to know how to split the pie, especially before it has been baked. How much should be given to the guy bringing the sugar vs. the one with the strawberries? What about the gal who came up with the idea to make dessert in the first place? (Read More)

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Posted in BusinessWeek, Finance, More on Start-ups, Partnerships, Print, Small Business, Start-up Finance

BusinessWeek: When to Raise Money

Posted on October 17, 2008 | Leave a comment

BusinessWeek SmallBiz

By Monica Mehta

It’s the ongoing irony of early-stage investing: Just when your little-engine-that-could startup desperately needs funding, sophisticated investors have no interest in parting with their money. Not for a startup, not right now. But once your company has traction, customers, and revenue, those same investors are all over it. The timing couldn’t be worse…or could it be perfect? (Read More)

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Posted in Angel Investors, BusinessWeek, Finance, More on Start-ups, Print, Private Equity, Small Business, Start-up Finance