Some interesting links we found across the web this week:
How Do I Find Money to Start My Business?
One of the most difficult elements of entrepreneurship in the early stages is the search for different ways to obtain money. For example, according to a study only 25% of startups exist for more than a year. This article, with a focus on Mexico, discusses the importance of planning liquidity needs and finding investors to meet those needs. The article also breaks down the different phases of product or service development and some ideas of raising money for each phase.
7 Ways to Fail In Setting Up Your Board of Directors
Most entrepreneurs only set up a board of directors for their new business once an investor demands a seat on the board. This article suggests a board can be an invaluable resource for entrepreneurs who hope to make their startup an attractive acquisition or IPO target. However, for the board to be valuable these seven mistakes should be avoided according to a book by board expert Nancy Falls.
Diversifying Startups and VC Power Corridors
Despite research showing diverse founding teams have a higher rate of return than white founding teams, startups continue to have a lack of diversity. Women-founded companies receive a fraction of venture capital investments compared to all male-founded companies. This article provides suggestions on how the startup ecosystem can become more diverse since most of the new laws requiring more diversity generally apply to publicly traded companies.
Boards Need Real Diversity, Not Tokenism
In the wake of the U.S. Securities and Exchange Commission approving Nasdaq’s proposal to enhance diversity and inclusion in company board rooms, companies that view diversity as more than tokenism will create and enable high-functioning and representative boards. This article explains how to go beyond tokenism by encouraging an approach that values core social identities.
What Every Founder Should Know About Their Finance Department
First-time founders generally don’t know where to start on managing money in the early stages of their business. A survey found 94% of these founders confuse the roles of accountant, tax planner and CFO. This article lays out these roles as well as what to expect at different stages of the business.