Thinking About Financing Rounds

Paul Jones, co-chair of Venture Best, the venture capital practice group at Michael Best, has been selected as a regular contributor of OnRamp Labs, the newest blog addition to the Milwaukee Journal Sentinel covering start-ups and other Wisconsin technology news.

Paul’s most recent contributed piece “Thinking About Financing Rounds” can be found under their Business Tab in the Business Blog section. Click here to view his latest blog.

Here is a short excerpt:

Most high impact entrepreneurs need capital to build their businesses. The amount of capital, and the timing of the infusion(s), is mostly a function of the kind of business/business model and the time it takes to get home – that is to an exit transaction. So, for example, an entrepreneur who happens to be a programming wizard with a simple, niche mobile app might need say $10,000 to develop, validate and sell his app/business for several million dollars in say 12 months (the assumptions here being that the app is in fact something that the market wants, and the execution by the entrepreneur is outstanding). At the other end of the spectrum, a scientist with an idea for a new drug for treating cancer will likely require several hundred million dollars or more and ten years to see that that idea turn into an FDA approved drug. Further complicating matters, the exit strategy, more particularly whether the goal is a relatively modest exit sooner rather than later, or a more substantial exit of a more mature company, has a big impact on how an entrepreneur thinks about rounds of financing.

Click here to read more of Paul Jones’ OnRamp Labs blog post located under the Business tab of the Milwaukee Journal Sentinel’s website, www.jsonline.com.

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