Questions on angel investors who provides capital for a business start-up.

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19 views

Common for angel investors to have put options for investment amounts?

I am considering an equity or convertible debt investment in a startup. As an angel investor, would it be out of line to ask to be given a put option? If the company raises at least $X from other ...
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2answers
44 views

How to find Angel/Early stage pitch events

We are an early stage company with a working product. We would love to gain some seed funding to help us market the product. However, we seem to hear about pitch events either in the paper or past ...
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1answer
98 views

How improbable is it that a founder with student loan debt will grab seed funding?

I noticed that student loan debt is almost never mentioned in articles discussing the acquisition of angel funding and funding from VC's. I have a hard time believing that investors will invest in ...
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4answers
47 views

Non-dilutable options

I have an entity I've been working on for roughly 4 years, the last being a real push to get it out the door. A student recently joined me and got us into a student business plan competition and we ...
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2answers
41 views

Term sheet condition to use the investors law firm?

Our company has just received a term sheet for a convertible debt investment. One of the clauses states that we have to pay the fees for drafting the agreements (which I understand is normal), but ...
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2answers
47 views

Does having a controlling interest in a startup offer investors additional protection?

It reduces the risk for the entrepreneur but I also came across the complementary view that it might offer the angel/VC an added level of protection. How does that work?
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0answers
59 views

I built a very profitable start-up business for my employer over the last 6 years & need HELP! [closed]

I need to know if I have just cause to sue. AZ is a right-to-work state, but I built a complete start-up business from "nothing with little or no support from the owners of this new business". I was ...
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0answers
44 views

Angel or VC wants to invest, what are main arguments to negotiate shares vs investment?

what are main arguments to negotiate shares vs investment? I want to be prepared when the time comes and I don't want to figure out in the moment about the negotiation about shares split and how much ...
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3answers
88 views

How do you decide between looking for investment or early adopters?

My MVP is ready to go (it's been 3 weeks actually). All this time I've been loosing sleep trying to decide if I should start looking for and organizing early adopters, or organizing a business plan ...
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1answer
115 views

Starting a venture with zero capital of my own

Will i get seed capital / angel investment for my venture if the capital that i am putting myself is zero? I mean my venture has a fund requirement of INR 2 Cr for the next 2 years, after which it ...
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1answer
61 views

Product in Development what to do next?

My product is in development. By Feb 5th a beta should be released. For the mean time aside from getting traffic to prelaunch what else should I do ? I am the nontech founder. So Far I have ...
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2answers
60 views

With the rampant invest-in-clone-markets system prominent in India, how does one pitch in for some fresh concept?

Angels and VCs in India seem to be living in a "third world" in terms of their risk appetite and appreciation of a new concept or idea. A major part of funding to startups in India goes to ...
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0answers
35 views

One Product Start [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? We have a one product company that has a patent on a fitness product. There are 3 of us. Guy #1 who ...
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2answers
198 views

Board composition and dynamics after angel investment

I am the sole founder and owner of a limited company. I am considering to find an angel investor not only for financial reasons but also to have somebody experienced to give valuable input - ...
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1answer
126 views

Funding for developing a mobile application

We are college students currently developing an iPad application and seek a small investment to complete the development before submitting to the app store. We have tried several avenues for asking ...
0
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1answer
107 views

How to expose my startup to seed investors instead of cold calling them?

How can I expose my startup to seed and angel investors instead of cold calling them? Is there any way to get feedback from them? In Silicon Valley or other major startup scenes.
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3answers
92 views

Seed funding question

We are in our seed round and the investors are asking for preferred shares of the company and terms that they own a percentage of the code/software and a percentage of the patent rights. We are ...
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2answers
132 views

Should I give an investor equity for a short term investment?

We are not so much a start up company; been doing business for over 7 years and started off with an investor which was considered a loan with interest. Now we are up to receive anywhere from ...
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2answers
259 views

Dealing with Co-founder without the same commitment

Imagine the following scenario: 1 founder and self proclaimed CEO , created an idea for a new website internet services, and started developing it. The core of the system is done, he decides that one ...
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1answer
63 views

Meaning of Automatic Conversion in Series AA TermSheet

There is a clause Automatic Converstion in Series AA termsheet of Y-Combinator which says Each share of Preferred will automatically convert into common stock, at the then applicable conversion ...
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0answers
41 views

Format or terms and condition of Preferred Stocks Angels ask for

I read several blogs and interview of several Angel investors. My understanding is they are mostly asking for Preferred Stocks. What are most common terms and conditions they lay down in Preferred ...
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1answer
61 views

What will the angel talk about next during phone conference?

We been going back and forth on emails and spoke on phone once. He lives outside of USA. The Angel said he loves the deal, but he won't take the deal seriously unless he has the full scope of the ...
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2answers
165 views

New business. How *exactly* does one raise VC capital, or any other startup capital?

First off I'm very glad to have found this exchange because a lot of questions will be forthcoming from me. The skinny: I started a new business a couple months ago, an LLC. My skill set is in the ...
2
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2answers
223 views

How do I make an angel investor move faster on a deal?

The investor is very excited but he seems very slow on the deal. We've been in communication for 3 weeks. I recently gave him access to the invesment package. But There was A tech issue on a website ...
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2answers
141 views

Approaching Angels by E-Mail - How much information should I expose?

I consider contacting a few potential angel investors through E-mail, for my yet to be founded startup. My Executive Summary is ready to be sent, but I'm wondering if its safe to send it right away, ...
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1answer
72 views

What legal docs and stuff do I need to lead an angel round?

A friend of mine is coming into some money shortly and is interested in actively doing angel investing. Assume they are investing in US, tech companies. What would he need to start leading small ...
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2answers
138 views

Angel Investors: Exit Strategy = We plan to IPO

How bad (or good) is it to say something like, "We plan to exit via an IPO" on exit strategy to an angel investor?
16
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5answers
997 views

Losing Controlling Interest in a company, can that be bad?

Basically I have been lucky to get spotted by some angel investors and will be signing £60,000 for 60% of my current business come thursday, which will really boost my start-up massively and ...
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0answers
23 views

Canadian Corporate, Holding , or other?

I am a Canadian investing with two other Canadians in a New Mexico LLC and a C corp (related companies). We are looking to set up a Corporation of some sort in Canada to hold the shares (private ...
2
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1answer
160 views

Buyout angel investor to avoid exiting?

It appears that in order to raise angel investor financing for my first-of-it's-kind product startup ($500K+ minimum) I will have to give up the whole dream within a few years in an exit event. ...
1
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1answer
136 views

Seek advices: Raise Money or not?

I've $100,000 from my personal money for a new company. I was thinking about going to Austin, TX, as I've heard Silicon Valley is more to raise money than to actually develop apps. Viewing all the ...
3
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1answer
178 views

Can I approach Angels even if my associate and I have absolutely no cash?

My associate and I are doing a website and we have absolutely no cash. Altough, we made a demo, "a prototype" of our website. Would that demo and a solid pitch/business plan convince an angel even ...
1
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1answer
122 views

Once you find a VC/Business Angel or other, how long does it usually take to close the deal and get the money?

Imagine you found a VC or Business Angel or other to invest in your project something around 200,000 USD. How long does it usually take to close the deal and get the money? (A min-max and average ...
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2answers
217 views

How to proceed with funding and getting a prototype?

Should we get angels to come in after we have made a prototype or should we wait until we have an established base of customers? We realize that we can't go to investors without a prototype to show ...
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3answers
2k views

Is it worth applying to ABC's Shark Tank tv show?

I am trying to raise funds for my patented idea. I looked into applying to ABC's Shark Tank tv show. Does anyone have any experience with the show? I submitted my idea to season 4 casting on Shark ...
2
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1answer
299 views

Looking for Angel/ VC funding for our project

We have a smartphone job engine. The project is already released in beta domain and getting good response. We have not yet prepared Business Project/Proposal document as we were concentrating on ...
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1answer
121 views

Is it better to raise from a seed fund VC backed or Angels who are investing their own money?

I'm going to start raising funds for my company soon. I already have more than a prototype website and can take payments but still need to get a little more development complete. I'm undecided on who ...
4
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1answer
172 views

Finding Investors. Who can you trust?

I see lots of investor hunters or finders on the web, but who can you trust? For instance many want a fee upfront to introduce you to 10 or 20 qualified leads. This is mostly done via phone and email. ...
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3answers
786 views

What happens to the angel's / A round investor's stake on subsequent rounds, in the Valley?

As far as I understand, when the next round happens, the startup emits new shares that are sold to new investors under newly negotiated valuation. Does this lead to the previous investor's shares ...
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2answers
277 views

What is a good way to find investors for a start up?

I have developed my SAAS on a shoestring budget and I have just made it production ready so I am now looking for ways to market it to my customer base. I, however, do not have the funds available to ...
3
votes
3answers
186 views

Got initial traction, how do I know that it's “enough” to pursue investors?

My webapp is gaining traction, being passed around and written about in various countries around the world (it's nice seeing viral loops in action, I must say :) ). And because I'm in the file storage ...
3
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2answers
351 views

Can you explain this angel Investment term sheet?

My startup received a Terms Sheet from an investor and my co-founder and I are trying to figure out if they are saying that they are going to want 30% of our profits at the end of every year or if ...
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2answers
206 views

Was there ever a startup website that didn't require the help of angel investors?

I guess what I meant to say is; Has there ever been a startup that started small then became successful on its own, instead of having a large financial backup beforehand? If so, may I ask for a list ...
0
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1answer
92 views

Who are the most reputed Angels/VCs and what type of Businesses each of them Concentrate on

I am looking for funding, thus looking for angels in technology and trading. Is is possible to post sources of funding by area and stage. Also relative merits of each source. Perhaps links and ...
1
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1answer
123 views

Angel investment and qualification questions

Just because I didn't make 250k a yr ago why cant I be considered an angel if I was short like 20k but made it this year? Also, where can I invest, because most places dont want to deal with someone ...
2
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1answer
295 views

Questions around vesting vis-a-vis dilution, leaving a company and being fired from a company

I am just curious about vesting as against 3 things - Dilution, a Co-founder leaving, a co-founder getting fired Please assume a 2-man team with the equity split among the founder & CEO (A) and ...
2
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3answers
225 views

How to split ownership <promise a long but interesting case-study here> in a startup with a scenario like the one below?

All, This is a case with a friend of mine who is a first-gen entrepreneur and close to cutting a deal with Angels for a funding of $400K. But before I ask you his question, here is the situation, ...
3
votes
1answer
406 views

Valuation for a B2B SAAS past prototype, but pre-launch?

This is a little complicated, but I have an interested group of angels asking for how much for 10%-20% of my company. I have no clue what to tell them, or what my valuation is. It is a B2B Saas ...
3
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1answer
61 views

Do I bring the Business Angel to the VC-Pitch?

Would it be wise to bring our Angel to the VC-pitch? The Angel would make a good impression. He is definetely better at pitching than everyone in the team. But what impression would it make, if we ...
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1answer
152 views

Product in Development - Seek Seed Funding?

I think this response gives me a good explanation for what to in regards to having an idea/prototype and seeking funding Is having a working prototype required for getting seed funding(first round)? ...

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