Questions related to receiving capital from external sources.
4
votes
7answers
475 views
When do I know it's time to approach VCs (or do I need to)?
I have a startup that owns a product. The industry response about the product has been very encouraging and articles have been published on tech blogs about its superiority. The cost to run the ...
4
votes
5answers
320 views
How much you invested in your startup before quiting or before looking for funding?
If you have some money in account then how much to invest it for own startup? better to invest only certain $K and get other from Angels or other sources? What's your experience?
4
votes
3answers
355 views
Living on no income
I'm sure this has been asked before, but my searchfu failed me, so I'll ask...
How do people bootstrap (which I assume is the most common early-funding model) and manage to pay the rent and feed ...
4
votes
4answers
196 views
To take government loan for startup, or not?
Recently my government announced they are lending funds for entrepreneurs. Not sure about the interest (which I will find out later), but their terms is first 3 years no repayment needed, then on 4th ...
4
votes
3answers
415 views
What are the pitfalls of converting early employees' common shares to preferred and then selling them to investors?
This is a question about private, VC-funded, growth stage companies. It seems to be a new trend to allow early employees to sell some of their shares when the company does a new funding round. For ...
4
votes
4answers
181 views
How important is market size? And how small is too small?
I have been working on a startup idea for the past few years. The prototype is out there and I have a few hundred people using it. My adsense revenue is about as much as I spend on costs. At this ...
4
votes
1answer
328 views
What are some resources to watch example pitches?
I like to learn by example so I am trying to find sites that are putting recorded pitches up online.
Examples would be:
Shark Tank on Jason Calacanis's This Week in Startups - ...
4
votes
3answers
1k views
How is ownership of equity re-distributed at each stage of growth?
I've been researching for over a year now as an aspiring entrepreneur, but I am still fuzzy on how equity gets distributed at every stage of company growth.
Is a set amount of "shares" created upon ...
4
votes
2answers
170 views
Does BizSpark preclude you from accepting funding elsewhere?
I am going to embark very soon on a software venture (have been a consultant and employee up until now).
I see advantages in signing up for Microsoft's BizSpark.
However, I wonder if doing so would ...
4
votes
4answers
237 views
Funding: Kickstarter or Family Loan?
Background
I've been working on a video game for android devices (i.e. an app) for some months now, and I'm getting close to completing a solid, well polished product
I'm lucky enough to have an ...
4
votes
1answer
159 views
What is the JOBS Act?
The Senate passed the Jumpstart Our Business Startups Act (JOBS Act) by a vote of 73-26. The Senate added new crowdfunding protections, the House will likely accept them as-is, and the President is ...
4
votes
3answers
2k views
Where can I find samples of good one page executive summary for a business plan?
We are applying for angel investment for our startup and looking for some samples of one page executive summary. Please share if you are aware of any.
Thanks,
4
votes
3answers
1k views
What's a reasonable salary for a CEO in a startup?
Just out of curiosity, for a funded startup, what will be a reasonably salary for a CEO?
4
votes
7answers
1k views
Should I grow my business organically?
The main funding source I see for startups is either angel investors or VCs. Should an organic growth model be considered for my startup? What are the pros/cons of organic growth?
4
votes
1answer
121 views
When does the Series A round kicks in?
We are preparing a business plan for our next startup and this time we are planning to raise seed funds of $300K for 12 months with a milestone. We will enter the private BETA program for a group of ...
4
votes
3answers
202 views
Is an experienced accountant necessary for an s-corp formation?
I need to form an s-corp in Delaware. The corporation will be taking on angel funding as soon as it is formed.
I have retained an attorney experienced in the formation & funding processes. The ...
4
votes
1answer
896 views
Private Stock Offering - Funding through online means
I thought of this some time ago when I was raising some capital for my first start up (which blew up after year 1).
We were a team of 3 cofounders working on a financial portal startup. After a few ...
4
votes
1answer
221 views
Start up valuation - how much equity
Approached by 2 founders that are very early days of executing an idea.
They have some good .com properties that will be central to brand/idea and had recent offers around $100K, with one outlier ...
4
votes
2answers
650 views
What does a seed money deal look like?
I have a personal contact that has shown interest in giving me seed money for a start-up. I am getting my package together to pitch the concept, and have virtually no idea what the investment deal ...
4
votes
5answers
202 views
Are there European Union funds for tech startups?
We are a young team willing to launch a tech startup (we have the product ready), and we are looking for funding to develop it further. We are looking to take advantage of European Union ...
4
votes
2answers
133 views
What's the process around transferring the cash upon a VC funding round?
Let's assume a startup and a VC agree to $X of funding in a Series A. What typically is the process (the mechanics) around transfer of funds from the VC to the startup? (A) Do the funds typically ...
4
votes
1answer
151 views
Evaluating a startup
My question is, what is the best way to evaluate a software startup as a perspective employee from the point of view of viability i.e. economic viability.
I am more interested in hints related to ...
4
votes
2answers
109 views
Finding available grants for businesses in Canada
What is a good resource for grants available to business in Canada?
Startups are preferable due to the nature of this site, but any would do. Outside of waiting until their announced in the paper, my ...
4
votes
3answers
221 views
Who uses “Self-Directed” Retirement Accounts to fund start-ups?
In the United States a retirement account like a 401K or an IRA can be incorporated as a "self-directed" account. A self-direct account provides you check-book control over your retirement account. It ...
4
votes
3answers
199 views
New to VC world. Looking for direction
I am trying to startup a mortgage company. My venture would be a full service mortgage lender not a brokerage. I have a marketing plan that I feel will drive business to the company in a sustainable, ...
4
votes
5answers
254 views
Should I incorporate my project into a company?
I am working on a project which just finished its prototype, and will start internal testing soon.
There are 3 of members in my team, and we are considering of start trying AI or participating some ...
4
votes
1answer
142 views
I ran an ad and now an investor wants to invest in my project and he wants to do several things first. Is this an odd request?
He wants to open a Chase Bank account for the investment. So my question is how do I protect myself if for some reason this person is trying to lauder money through my project? What protection can I ...
4
votes
3answers
230 views
How much more funding can you get in Y combinator
As far as I know YCombinator usually gives an average of 17k to participants, but do you get more funding rounds through YCombinator or you have to look for VCs yourself after?
4
votes
4answers
607 views
Can startup funding cover founder's personal expenses?
I and a friend of mine are working on our own web startup. Right now we are coding the whole thing and would be looking for investors 3-4 months down the line. My question is, can we include our own ...
3
votes
10answers
589 views
We've launched, are bootstrapped and have a few thousand $s for marketing, advice?
As requested, here is more information.
Our startup is PubliciTweet. We're like a Constant Contact for Twitter. While in public beta the service is completely free. We are most interested in ...
3
votes
6answers
172 views
How do investors feel about investing in an outsourced MVP?
We are a semi non-technical team, that has access to technical people that will oversee the technical side of the build. Our thoughts, are to use the working MVP to validate the idea, and hopefully ...
3
votes
7answers
1k views
What do I need to convince people to invest in this company and how do I determine the initial investment?
I am planning for a company. The company will build a university. The company has a plan of 10 years to build the university and make it functional.
What I need now is investment. The question is how ...
3
votes
3answers
2k views
How do businesses like Instagram and TwitPic make money?
Both of those examples don't charge anything, and don't have ads on their wedsite/app. Both of them have (to the best of my knowledge) gotten hugh amounts of money in funding rounds. How exactly are ...
3
votes
5answers
162 views
Is it possible to get funding before any sale?
I am curious, is it possible to get funding from investor before doing any sale? Any experience?
3
votes
5answers
184 views
Are you sure you want to start that business next year? How are you planning to take your small business forward next year?
Are you working from home? Is your office in a garage? Is your business plan too big to be executed by you? What plans do you have to change this, if you don’t like the present situation?
Is start-up ...
3
votes
5answers
1k views
What happens if the startup that funded by VC failed a couple of years later?
We've heard the good stories of startup that succeed after receiving funds but what happens if a startup that got funded by a VC but turns out being failure a couple of years later?
Do they get sued ...
3
votes
5answers
129 views
To get funding do you really need a well known entreprenuer/fame on your team?
My team and I are very capable (we launched our site in short time its getting updated frequently) but this is our first real startup and we do not have any sort of famous reputation (like ex-facebook ...
3
votes
4answers
534 views
My co-founder wants to leave to take a paid gig — what do I do?
My fiance and I started a business together 2 years ago. He quit his job and I kept my full-time job. We raised $300K from friends and family via promissory notes convertible to shares when a larger ...
3
votes
1answer
303 views
Are there any grants for starting IT business in India?
I have a unique and viable idea but no seed money. I also have low qualification (no college education) so no chance of funding by VCs.
I am aware of many programs by US and other governments. Are ...
3
votes
3answers
469 views
Alternatives to raising capital without giving up equity
I am from India - Bombay and have started this trading business of Cast Iron Brackets which is used to fix up wall hung commodes in bathroom/toilets, urinal commodes and wash basins alike.
It's been ...
3
votes
6answers
1k views
Best way to navigate getting out of an office lease
We signed a lease on office space but recently hit a tough stretch funding-wise and are trying to figure out a way to get out of lease as quickly as possible. Any suggestions for this? I guess if we ...
3
votes
4answers
1k views
Raising money from non-accredited friends
I am wondering as to what is the best (easiest) way to raise money from interested friends who are non-accredited.
I feel like I am fortunate enough to have some wealthy enough friends who would like ...
3
votes
2answers
268 views
Evaluating a “Promise” from a startup company for pay raise, benefits, stock options within a specified period of time?
I would appreciate any advice based on a current situation that I am in that I think a lot of people involved in startups (especially developers) find themselves in at some point.
Basically, I'm in a ...
3
votes
5answers
112 views
Can referencing our competition help us receive funding?
We have been building our startup for two years. Over that time our idea has evolved and been refined.
We are currently talking with investors for funding our project and I want to know if, to help ...
3
votes
5answers
268 views
What is the best way to adjust options?
Me and my partner are about to start a new startup. I'm much more financially prepared than he is so we've agreed on the following structure.
I would fund the company with half a million for the ...
3
votes
2answers
301 views
What is the value of my IP (in terms of equity)
Here is the scenario:
I am the ceo/founder of a company that will be launching a website/application. The amount of cash I have invested thus far is less than 3,000.
I am currently seeking ...
3
votes
4answers
1k views
How much VC equity stake for a product that is fully built for a mid-stage start-up company?
So I have a site that will accept subscriptions the first quarter of 2011. I have been developing this product over the past year and it is almost complete. I would like to use the VC money to help ...
3
votes
2answers
113 views
What is a “Business Angel”?
I've seen the term here, and I can guess where it comes from, but what exactly is a Business Angel?
3
votes
5answers
302 views
Starting New School Revenue Streams
Hey guys, it's me again. As was to be expected, I've run into funding problems with Idea School.
The quality teachers I'm looking for are worth about $50-60K per year. Now, of course, they ...
3
votes
2answers
209 views
Is asking for donations from users a viable option for a startup?
I know, Evan Williams asked for donations from users while he was running Blogger.com in its early days but that was then. Is a donation button for a web app in beta tactless, in these times? what if ...
