Category Archives: More on Start-ups

BusinessWeek: Structuring a Business with Investors in Mind


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

BusinessWeek: Don’t undercut your equity stake

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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BusinessWeek: The Science of Risk-Taking

Conventional business planning teaches us how to identify risks, not how to take them.  For aspiring entrepreneurs seeking to take a leap, learn from veteran entrepreneurs and the scientists that study them.   Check out my latest story in BloombergBusinessWeek on how to take entrepreneurial risks.

BusinessWeek: Raising Seed Capital Now

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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ABC News: Easy to Start Businesses

Monica Mehta speaks with ABC News Good Money anchor Tanya Rivero about four businesses ideas poised for success, even during tough economic times.

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ABC News Video: Is your idea a business opportunity?

ABC News

Small business expert Monica Mehta has tips for translating business ideas into big opportunities

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BusinessWeek: Post-Crisis Equity Financing

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)

BusinessWeek: Startup Solutions – Dividing the Equity

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)

BusinessWeek: When to Raise Money

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)