Funding
Raising money without getting burned.
4
concepts
5
tools
29
books
How funding works — step by step
Read these in order. Each takes about 3 minutes.
- 01
Fundraising basics
Raising money means selling part of your company. Understand the terms before you sign.
First step: Decide if you need outside money at all — many businesses don't.
- 02
Term sheets, explained
A term sheet is a short document setting out the key terms of an investment before the legal paperwork.
First step: Check the economics: amount, valuation, option pool, liquidation preference.
- 03
Valuation basics
Early-stage valuation is a negotiation about price, driven by traction, team, market and competition between investors.
First step: Know your numbers: traction, growth, revenue.
- 04
Angels vs VCs vs bootstrapping
Different money comes with different expectations — choose the kind that fits your business.
First step: Ask: could this become a very large company?
Tools for funding
Most useful at these stages
Essential reading
Rework
Jason Fried & David Heinemeier Hansson
Short, punchy essays arguing you can build a business with less: less planning, less funding, less busywork.
Venture Deals
Brad Feld & Jason Mendelson
Plain explanations of term sheets, valuation and how venture capital deals actually work.
Never Split the Difference
Chris Voss with Tahl Raz
A former FBI hostage negotiator's techniques: tactical empathy, mirroring, labelling and calibrated questions.
Blitzscaling
Reid Hoffman & Chris Yeh
When and how to grow extremely fast, prioritising speed over efficiency in a race to win a big market — and the risks of doing so.
Explore by tag
From the library (29)
The Mechanics of Private Equity: Demystifying Private Equity Fundamentals and Leverage Buyout (LBO) Valuation Modelling for Startup Founders, Entrepreneurs, Fund Managers, and Investment Bankers
An introduction to private equity fundamentals and LBO valuation modeling, written explicitly for startup founders and entrepreneurs. Helps founders understand how PE funds work, how buyouts are structured and valued, and how to speak the language of investors when exploring growth capital, exits, or acquisition strategies.
500 Startups: Scaling Early-Stage Investing
A Stanford Graduate School of Business case study detailing the investment strategy and operating model of 500 Startups, an early-stage venture firm founded by Dave McClure. It examines how falling startup costs, changing exit options, and global market opportunities reshape seed investing—highly relevant for startup founders seeking to understand the modern funding landscape and VC expectations.
Core Curriculum Reading: Financing Entrepreneurial Ventures
A Harvard Business School Core Curriculum Reading that introduces key issues in financing entrepreneurial ventures, including how business models shape funding needs, tradeoffs between bootstrapping and external capital, differences between debt and equity, types of equity investors (angels, VCs, strategic investors), venture financing stages, alternative models like partnerships, and emerging funding mechanisms such as crowdfunding and accelerators. Useful foundational reading for startup founders seeking a structured understanding of entrepreneurial finance.
Equity Crowdfunding
Written by Nathan Rose, this book serves as a comprehensive guide to equity crowdfunding, offering insights and strategies for startups looking to raise capital.
How to Be a Capitalist Without Any Capital
A startup-focused business book by Nathan Latka that outlines unconventional, practical strategies for building wealth and companies without significant upfront capital, useful for aspiring and current startup founders looking to grow with limited resources.
Secrets of Sand Hill Road
A book by Scott Kupor that demystifies the venture capital world, offering insights into how VCs think, what they look for in startups, and how founders can navigate the fundraising process.
The Art of Startup Fundraising
Alejandro Cremades provides a comprehensive guide to raising capital for startups, covering everything from pitching to investors to understanding the fundraising landscape.
The Crowdfunding Revolution
Kevin Lawton's 'The Crowdfunding Revolution' explores how startups can leverage social media to raise venture capital. This book is particularly useful for entrepreneurs interested in alternative funding methods.
The Funding Is Out There!
Tiffany C. Wright provides a comprehensive guide on securing funding for startups, offering strategies to access financial resources effectively.
The Power Law
Sebastian Mallaby’s narrative history of venture capital that helps startup founders understand how VC works, how power-law returns shape the industry, and what that means for building and funding startups.
The Startup Pitch: A Proven Formula to Win Funding
A practical guide for startup founders on crafting and delivering investor pitches, covering story structure, key slide content, and what investors look for. Directly aimed at helping early‑stage founders raise capital more effectively.
Venture Deals
Brad Feld and Jason Mendelson demystify the venture capital process, offering insights into securing funding and negotiating deals. This book is crucial for startup founders navigating the complex world of venture capital.
Zero to IPO: Over $1 Trillion of Actionable Advice from the World’s Most Successful Entrepreneurs
A comprehensive startup guide by Frederic Kerrest, cofounder of Okta, distilling lessons from building Okta and interviews with top founders and investors. It covers idea validation, fundraising, go‑to‑market, scaling, culture, and leadership, making it a must‑read playbook for startup founders aiming to grow from inception to IPO.
Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
Mike Michalowicz's revolutionary cash management system that flips the traditional accounting formula. Used by over one million companies globally, this book teaches entrepreneurs to take profit first and build financially healthy businesses from day one.
Buffett's Biggest Blunders: The Greatest Investor's Greatest Mistakes
Analysis of Warren Buffett's major investment mistakes, offering lessons for entrepreneurs on decision-making and risk in business and investing. Relevant for startup founders managing finances and investments.
Got Business Credit
Guide to obtaining business credit, by Donnette Dawn Thomas. Average rating of 5.00 from 4 ratings on Goodreads. Key for startup funding.
Market Mojo: A Beginner's Guide to the Stock Market
Beginner's guide to understanding and navigating the stock market. Useful for startup founders learning about investments and financial markets.
No Money Down Formula in Real Estate
Strategies for real estate investing without initial capital. Included in startup book recommendations with 3.14 avg rating from 7 ratings.