Tactus Tackles Fund-Raising
Read the case "Tactus Tackles Fund-Raising" at the end of Chapter 8 and answer the questions that follow: 1. Craig Ciesla and Micah Yairi eventually turned to friends and family for funding. Should they have done that first? What are the risks with raising money from such individuals?
Many us have heard don’t borrow money from family or go into business with friends. In the case of Tactus fund-raising, they faced many financial obstacles in raising their capital. Craig and Micah did the right thing by not obtaining funds from friends and family at first. One of the major reasons new startup companies fail is because they undercapitalize. A startup company must have enough capital to get establish and stay afloat through the slow times before experiencing prosperous times. Yes, it is true. Friends and family are more willing to listen to your business plan and help out. As stated before, don’t borrow money form family or go into business with friends. If you are feel uncomfortable using their money. Perhaps, one should utilize their expertise or labor. This will free up some of the capital to be use for other resources. In the end, try not to borrow funds from friends and family to prevent jeopardizing those relationships already establish. Instead, if you must try to utilize their services the company may need until the business can bring positive cash flow. 2. What are the risks and benefits of waiting until they had been granted patents to ask for customer feedback?
An inventor should file a patent early and often. It protects the inventors from society’s constant needs and problems. If your invention has been in public disclosure one day before a patent is filed. One cannot file a patent application with some foreign countries providing a one year grace period (Patents-Trademarks-Copyrights). The advantages of getting a patent are getting financial rewards, gaining competitive edge, an early start advantage, and reputation and
Many us have heard don’t borrow money from family or go into business with friends. In the case of Tactus fund-raising, they faced many financial obstacles in raising their capital. Craig and Micah did the right thing by not obtaining funds from friends and family at first. One of the major reasons new startup companies fail is because they undercapitalize. A startup company must have enough capital to get establish and stay afloat through the slow times before experiencing prosperous times. Yes, it is true. Friends and family are more willing to listen to your business plan and help out. As stated before, don’t borrow money form family or go into business with friends. If you are feel uncomfortable using their money. Perhaps, one should utilize their expertise or labor. This will free up some of the capital to be use for other resources. In the end, try not to borrow funds from friends and family to prevent jeopardizing those relationships already establish. Instead, if you must try to utilize their services the company may need until the business can bring positive cash flow. 2. What are the risks and benefits of waiting until they had been granted patents to ask for customer feedback?
An inventor should file a patent early and often. It protects the inventors from society’s constant needs and problems. If your invention has been in public disclosure one day before a patent is filed. One cannot file a patent application with some foreign countries providing a one year grace period (Patents-Trademarks-Copyrights). The advantages of getting a patent are getting financial rewards, gaining competitive edge, an early start advantage, and reputation and