Questions related to receiving capital from external sources.
11
votes
5answers
260 views
Can a startup with little expenses really benefit from investors?
My Royalty Free Music business model is designed to have zero expenses other than keeping my domain name up every year. The 'fuel' to my company is musicians' old recordings which I create new music ...
1
vote
2answers
110 views
Approached by investors from overseas
What types of things do I need to consider if I get approached from a venture fund overseas? I had an early-stage venture fund from Germany contact me looking to learn more about our startup and what ...
1
vote
2answers
139 views
Reputable Angel Investment Sites or Resources? [duplicate]
Possible Duplicate:
Looking for a list of angel investors?
I have been starting the preliminary backside coding to a new web project that I am starting. I have seed money that I am using ...
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 ...
6
votes
1answer
190 views
Equity and compensation for boot strapped venture
I have been approached by a friend to help with the business side of a venture that he has developed/bootstrapped. No external funding until now. He has developed a working product with outsourced and ...
1
vote
2answers
176 views
Getting Funding for a Tech Startup in Florida
I'm well aware of the vast sums of VC money in the Bay Area, Seattle, and even Boston. I'm located in the Tampa, FL area and am starting my business here. I'm willing to move the business after a ...
7
votes
4answers
9k views
kickstarter alternatives for non US startups?
I've recently been looking into getting funding for my startup (we're building a web-based social platform). I've looked into www.kickstarter.com and it looks pretty cool however it is only open to US ...
0
votes
2answers
587 views
Burned out. Should we sell our SaaS business or find second round investment?
Hey my name is Chris and my wife and I started a web application in Brazil over 3 years ago.
As most of the individuals in this community understand the difficulties of starting a business(These ...
4
votes
3answers
356 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 ...
6
votes
2answers
252 views
When do you start searching for VC's?
I was reading this article on traction and it had an interesting comment in it:
If you wait until you're "ready" to fund you're too late. Funding is about developing a relationship over time. ...
8
votes
2answers
1k views
How can a past employee protect themselves against share dilution?
What is share dilution?
How can I, as a past employee of a company where I exercised my share options, know if my shares are subject to dilution?
How can I protect myself in future from share ...
7
votes
2answers
3k views
What is the difference between Series A, Series B and Series C investment?
What is the difference between Series A, Series B and Series C investment for a startup?
How does this affect salary and/or equity expectations if I am looking to join a startup in a ...
2
votes
1answer
239 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 ...
1
vote
1answer
144 views
Planning for venture funding in India and the road ahead
I worked for few government organizations on contractual basis for four years. They were my premium customers for custom software applications. After freelancing for these many years and learning from ...
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
4answers
308 views
Should a start-up always take funding when there is an opportunity?
I always hear Jason Calacanis say that if there is a chance to take an extra round of funding, the founders should do this. Is that really true?
Does it increase valuation somehow? For example, if ...
4
votes
2answers
651 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 ...
10
votes
1answer
1k views
Why do startups need so much money?
What are startups raising millions of dollars for? I know running a website can get costly, but seriously, millions? I just don't get it. And if you say advertising, I still don't get it, because the ...
9
votes
2answers
244 views
What can you share about your experience raising capital?
I'm currently raising capital for our startup and I have my first meeting with an angel investor next week. We are have achieved product/market fit, are ready to launch and are looking for $1.5 ...
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 ...
1
vote
2answers
143 views
is it easier to get funding in California for a start up?
I am working on a SAAS product. One day i would like to grow it in to a business. I am in Ohio. I heard from people that its easier to get funding in California, bay area, sf area. I am planing to go ...
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 ...
1
vote
1answer
147 views
Should we use “trigger event” investment milestones for additional rounds of capital?
One of our advisors recently suggested we consider using "trigger events" for our second round of capital.
Along the lines of "I'll commit $50K now and if you get to 25K registered users by 6/30, I ...
5
votes
5answers
157 views
Would a voluntary fee work?
"How am I going to make money?" This is the question that's been bouncing around in my head for the last few months as I've been developing my site. Allow me to beat around the bush here, in order to ...
3
votes
2answers
331 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 ...
6
votes
8answers
1k views
Think I Have a Great Startup Idea, Don't Know Next Steps
Ok, so everyone thinks they have the next big great idea. Let's just assume for the sake of this question that I really DO have a good/great idea.
Some background and basic. I'm obviously not ...
7
votes
4answers
440 views
Starting a company with a very similar competitor already in place
I have a tech startup I'm looking to do in the mobile applications space. I thought my idea was very unique and my business partner and I spent about a week coming up with planning, name, concept, ...
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, ...
1
vote
5answers
419 views
Funding Options for my Startup
We have an online shopping portal which is mainly India focused.
We are now 14 months old and deal in multiple product categories like books, electronics, apparels, gifts, movies etc
We are looking ...
3
votes
3answers
278 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 ...
1
vote
3answers
189 views
Is it OK to ask prosperous client to invest in our startup company?
We are an early start up (7 months old), and we are in talks with 3 - 4 clients. We are building an E-learning kind of tool and looking for building the content as well.
I kind of sensed one client ...
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 ...
2
votes
3answers
327 views
Biotech Startup Funding Sources
I am in the process of starting a biotech. I have determined that a year is enough time to gather results promising enough to merit much greater investment- or failing, serious reconsideration or ...
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 ...
2
votes
1answer
625 views
ideas for compensation contract with series B startup
Hi and thanks in advance. I've done some looking around to determine where to start with startup compensation. I work as a contractor exclusively for a startup currently in series b round, I've been ...
1
vote
3answers
284 views
How much do I have to share with VCs?
After a phone call, I had my first meeting with a VC 2 weeks ago. He sounded very, very positive, wanted to send me a contract w/ a term sheet etc; and since he has been pretty unresponsive and ...
5
votes
4answers
454 views
Old question again: how does one valuate the startup for VC purposes?
I've been running a bootstrapped startup since last year and am running into definite limitations as to what I can do without further funding.
Startup enables elasticity for Microsoft's cloud ...
6
votes
4answers
448 views
How to get introductions to investors?
All over the internet, the consensus seems to be that when you are looking for funding it is important to approach angels or VCs through an introduction from someone they know, rather than cold.
...
7
votes
2answers
644 views
Acceptable Incubator Terms
I have seen the various documents the incubators (like Techstars Seed Funding Documents) have posted. These all represent follow on investments after their program.
What kind of terms can you expect ...
1
vote
1answer
228 views
Legal aspects of taking investments from a foreign company
There's quite a lot of documentation (for example here) about pros and cons of taking an investment from an accredited or non-accredited investor. However, I don't see any explanation when it comes to ...
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
3answers
418 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 ...
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
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 ...
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 ...
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 ...
9
votes
5answers
401 views
Savings, Bootstrapping, Starting Up
A friend of mine recommended 3 years worth of savings in order to start bootstrapping for my self-funded startup. Does this seem reasonable? I had previously been working towards a goal of 1 year's ...
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 ...
1
vote
1answer
278 views
How does option pool size at the time of incorporation impact valuation and funding
Suppose someone needs to incorprate a C-corp, for a high tech high growth business.
How does option pool size at the time of incorporation impact valuation and funding. Or it only matters how ...
