As Angels and VCs are tightening their fists, entrepreneurs are less likely to get next stage funding. Having a great team, pitch and front man are simply not enough.

The entrepreneur seeking investment should recognize the advantages of obtaining such an investment. However, the endeavor needs entrepreneurs to have a strong understanding of their objectives, opportunities, strategy, and fit with potential corporate partners.

The Billion Dollar Startup Club has 101 companies as of July 2015, with the number one private company valued at $46 billion. It’s no secret, technology has revolutionized entrepreneurship. The explosive growth of tech-based companies is at its highest since 1995, surpassing the dot-com boom of year 2000.

The capitalization table (cap table) summarizes who owns what part of the company before and after financing. It is one of the most important elements of the term sheet because it outlines the complete transaction succinctly using concrete numbers.

 An entrepreneur without funding is a musician without an instrument.― Robert A. Rice Jr.

A fair number of really smart, well-prepared entrepreneurs get tripped up, stumble around and eventually fall to the ground when they make their startup funding pitches to the Angel Investment Group that I am a part of.

Startup due diligence is one of the most important components of the funding process for a new business…

“A term sheet is like a prenuptial agreement and a coach’s playbook. Spend the time to understand the plays, and what happens should you ever separate from the business.”- Mitch Thrower

30+ Questions You Could be Asked About Your Startup During a Screening Meeting with an Angel Group

Is your NDA doing more harm than good for your startup?  Here are 5 reasons Angel and VC funds avoid NDAs.