Questions related to receiving capital from external sources.
3
votes
6answers
628 views
Family money, now how much ownership do I give them?
I received family money to build a prototype. They gave me money with little questions ask, but expect to have some part of the action if the business actually works.
My question is, what kind of ...
3
votes
5answers
286 views
Whats my next step?
My name is Stephen. This is my first time at your site so I'll explain where I'm at with my product and hopefully I can get a little feedback on what you might think is the best "next step".
1.) Had ...
3
votes
2answers
222 views
What do you do when your Angel turns out to be a Devil?
Investor are in it for one thing, profit. That's okay if both the founders and the investors profit. What do you do when the "Angels" who have been funding your work kick out the founders and the ...
3
votes
3answers
73 views
When pitching to potentials investors, should I let them come to me with offers individually or have a set price?
I am about to put together a investor presentation for my company. I will be presenting to investors individually.The investors are going to be pitched to within a short amount of time.
Should I be ...
3
votes
2answers
187 views
Unemployed but with ideas burning a hole in my brain. Where to?
(Incoming wall of text)
I'm a 27-year-old recent college (under)graduate (computer science) who's currently unemployed and having a heck of a time finding a job. I have what I believe is a decent ...
3
votes
1answer
197 views
Plain english translation of these finance terms
What does these mean in plain English, guessing the best way to describe it is by giving theoretical numbers for best worst case instances, though that's just my thought - I'll leave it up to you to ...
3
votes
4answers
564 views
What is the best way to present our business plan to potential investors or to a bank?
We have an excellent Business Plan, for some fantastic mobile ideas. The down side, we need funding to get these ideas developed and to market. What is the best way to meet with potential investors? ...
3
votes
3answers
648 views
Is having a working prototype required for getting seed funding(first round)?
I'm currently finishing up a business plan that's based on a social network that would solve a critical problem in the recruitment industry.
I am working on this project with one other person who ...
3
votes
3answers
322 views
seed round parameters?
How should we decide how much we need to raise in a seed round?
Our biggest expense is salary for the founders -- just enough so we can work full time on the company without living in our cars or ...
3
votes
9answers
448 views
Lifestyle company
VCs are looking for extremely large exits. This puts a lot of pressure on the founders to succeed fast or fail fast. A small, self-sustaining company can be more rewarding, because it can be molded to ...
3
votes
1answer
234 views
What does “warrants for the equity kicker” mean?
I was reading an article in a VC's blog and I found this explanation about venture debt:
"The terms are usually three years, interest only, balloon payment, with warrants for the equity kicker."
Can ...
3
votes
1answer
55 views
At a crossroads-Whether to launch or seek more time/funding for more development
I have spent considerable resources on the development of a networking/eCommerce site and have since changed my focus on the core idea for the business to the extent that the website is not 100% what ...
3
votes
2answers
139 views
What are some creative ways for a cash poor start up to compensate a designer?
We are in need of a designer for our start up, but we are pretty much cash poor. I have been talking to a designer for a few days, and he really wants to help as he loves our idea. He is very ...
3
votes
2answers
106 views
How do I pursue funding for a vertical product?
There are many resources about how to pursue funding for horizontal products, often software that can be used by a large number of people. These are problems that investors can understand personally, ...
3
votes
4answers
397 views
My startup is in “concept” stage. Where should I go from here?
I just found OnStartups and I'm looking forward to sharing
insights with you guys. My startup is currently in "concept" stage, and
I was wondering where to begin my journey. I have a great idea, ...
3
votes
2answers
145 views
What is the most important way in which an investor can add value to your startup?
How would you force-rank (1 being highest to 8 being lowest), in terms of value to your startup, the following 8 services provided by an investor:
Warm introductions to potential customers
Warm ...
3
votes
3answers
183 views
Is it best to skip family and friends as a source of funding for a startup?
When it comes to raising money for a startup, every one talks about trying the 3F's first, friends, family and fools. But it seems like this is not really an option when you consider that they are ...
3
votes
4answers
435 views
Using 401k or IRA money to fund a startup?
Is there a way to use my own money in a 401k or IRA account to invest in my startup? It looks like "Rollover Business Startups" (ROBS) are discouraged by the IRS. Are you aware of any other tactics to ...
3
votes
2answers
329 views
How do I setup an investor-friendly (Angel or VC) corporate structure?
I've set up two LLC's and an S-corp myself before for companies that I own and run; but this new idea I have is bigger and I will be pursuing investor involvement for it.
I'm trying to keep my ...
3
votes
3answers
277 views
How do I close my *second* round of investing when the first round VCs pass?
I already got my first round, piece of cake. We had a million dollars sitting in the bank. But now we've burned through it, and we need to raise again. I'm worried that the pressure from having a ...
3
votes
6answers
335 views
New job to bootstrap startup?
Context: I started a SAAS based platform for small and medium sized companies around a year back. To save some time I intentionally took this underpaid job close to my home. I have successfully ...
3
votes
1answer
160 views
In seed funding, can the investment come from multiple sources?
I have two investors that appear interested in my concept. I am going to speak to one tomorrow. I intend to disclose to him that I will also be speaking with another investor very soon. If possible ...
3
votes
3answers
235 views
Thoughts invited on unconventional ways of raising money
As I learn, fundraising is always a nightmare. It drains a considerable amount of energy. No matter how promising the pitch you make, it's not sure to entice an Angel or a VC. Even if they agree, it ...
3
votes
2answers
250 views
How did your capital-raising experience differ from what you expected?
One reason entrepreneurs are so highly lauded is that they are asked to expose themselves to criticism, rejection and doubt in dosages that average mortals cannot bear. At no time is that more true ...
3
votes
2answers
172 views
Has anyone had issues with too high of a seed-stage valuation?
I was sitting down with an experienced entrepreneur a few days ago who was telling me about a guy he was advising who was having no luck raising a Series A round. Apparently, when he got seed money ...
3
votes
3answers
121 views
Technology Accelerator or Bootstrapping
I have a few ideas for a company, and plan to get started sometime this fall. I know of an accelerator that focuses on this vertical, and I have contacts there so reaching out to them would be pretty ...
3
votes
2answers
185 views
Where to find mentors/advisors for garage stage startup company?
I have an idea related to healthcare communications and am trying to find mentors/advisors who would be willing to guide my partner and I towards success. I live in Silicon Valley.
I was wondering ...
3
votes
2answers
223 views
Profit Sharing - How to deduct on the Profit Loss Sheets
We have a Profit sharing program with the branch managers of our firm and I have a question about where to include those payments with regards to our P&L.
We currently provide payments quarterly ...
2
votes
8answers
491 views
Funding and money for startup
I have a very simple and basic question: How do I get funding for my startup? How much money can you get?
Thanks,
Yama
2
votes
3answers
416 views
What would this website be worth? Based on venture capital 23 mil
A 3 year old site which makes money through ads has received 23 million in Series A,B, and C funding. Any guess as to what it might be worth? Four times funding? Five times? Just curious as to ...
2
votes
6answers
3k views
Looking for a list of angel investors? [closed]
Either angel investment firms or single individuals would be great.
2
votes
3answers
155 views
How do you put a price tag on fame and mentorship from an early investor?
We're sitting with a situation where we have been given two different offers for seed investment. The first is more than double the amount of the other, but from someone not in the tech industry, and ...
2
votes
3answers
290 views
Where do you find startup capital?
I'm in the early steps of putting together a business plan. When it's finished, I'm definitely going to need to secure funding. How do you go about finding potential investors?
Tips to consider on ...
2
votes
8answers
3k views
What is a reasonable equity proposal for investors?
Say I have a brilliant idea for a startup, and need to raise 250,000 $ from private investors. How do I decide on how much equity to give for this investment? Is there a ball-park?
2
votes
2answers
160 views
How do you obtain angel investors help?
I am brand new to the startup stage and am trying to obtain money to get my startup off the ground. I have heard about angel investors but I have no idea how to get in contact with them (especially ...
2
votes
3answers
160 views
How do I specifically start a business as a government defense supplier?
No matter what shape the economy is in, the government will always have at least a few if not many contracts with defense contractors.
I would like to start a business as a supplier to these ...
2
votes
2answers
146 views
When VC's buy into a business who gets the money?
This might be a really dumb question but I've heard of a few cases where VC's have purchased into a business and it made me wonder. Facebook's purchase of Instagram recently made me think to ask on ...
2
votes
2answers
181 views
Will an angel investor be turned off by the founders not wanting to quit their day jobs just yet?
....my co-founder and I are working on a SaaS product and there is a chance we may seek an angel investment. Do you think us wanting to keep our day jobs for 3-6 more months will be a turn-off to ...
2
votes
3answers
193 views
Business Plan with No Immediate Revenue Opportunity
I am wondering if I should pursue a new business idea that has no immediate revenue opportunity. I would like to develop a web portal (I cannot divulge the exact business idea) and it will require ...
2
votes
2answers
67 views
Sealed bidding funding
I want to invite different investors/angels to invest a US version of my company which is up and running in Europe. In trying to get the best deal I am thinking of a 'sealed bidding' auction for a ...
2
votes
3answers
287 views
Finding quick dollars
My partner pulled out of our deal literally DAYS after I signed the lease, purchased equipment and re-located to start our business. In retrospect, I am glad because I have discovered his integrity ...
2
votes
2answers
230 views
Kickstarter in EU : still not possible?
I've seen a few posts on this site about crowdsourcing which imply that it's not possible to use kickstarter outside the US.
I'm wondering where does this information come from ? Any sources ? I ...
2
votes
3answers
166 views
Where to start?
So this is my situation:
I've got an idea and I don't have much programming skills - I'm 16 and about to start uni for the first time in a couple of months and I'm in for Software Engineering.
...
2
votes
6answers
115 views
How do I go about finding a 'closer' to help pitch investors?
I don't understand the funding/investment landscape. If I want to bring someone in to help me pitch angel investors and/or VC's:
Where would I go about finding them?
What questions do I ask to ...
2
votes
1answer
115 views
What happens when I issue shares and nobody buys them?
After launching the prototype and getting some pretty exciting customer feedback over the last six weeks, we want to raise a little investment money.
We're talking with several organizations so far. ...
2
votes
1answer
238 views
Pre / Post Money - What Are They? And Should Pre be 2x More than Post in Series A?
I am not (yet) active on a startup of my own but I have been trying to read and educate myself in that arena so that I can at least coherently talk and ask the right questions of the people who I'll ...
2
votes
5answers
358 views
Funding your prototype/alpha, cash or debt?
I will be funding my first web startup with debt. My reasoning is, it would take 12-18 months to save the capital required (I'm not a coder) and I would rather launch early and update often during ...
2
votes
1answer
87 views
Sharing too much/too little information
I am a recent co-founder of a local start up called HeartCode in Singapore and we're looking for funding to support our operations and product.
We have a very strong start-up idea and I took the ...
2
votes
1answer
151 views
What do kickstarters want in return?
I was looking at kickstarter to get some funding for a possible business venture. Kickstarter funding would cover entity filing fees and other costs or licenses and materials.
I have seen some ...
2
votes
6answers
466 views
Standard Articles of Incorporation Documents - resources
What are the best incorporation (and related) document resources? Are the YCombinator incorporation docs available?
There are a number of 'model' or 'open source' documents for a startup's first ...
