Questions related to receiving capital from external sources.
5
votes
4answers
194 views
Do I have to be physically present in SF to attract investors?
I have been reading articles by Paul Graham on start ups and am currently in the process of deciding where to incorporate. What baffles me is that most tech startups move to SF early on when the ...
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. ...
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 ...
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 ...
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 ...
9
votes
2answers
243 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
142 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 ...
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
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 ...
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 ...
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, ...
3
votes
3answers
276 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
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 ...
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 ...
2
votes
1answer
624 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 ...
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.
...
1
vote
4answers
569 views
Prototype ready, need funding in Vancouver, Canada. Is Angelsoft's Open Deals ($250 per month) a good idea?
$250 seems pretty darn expensive that they are charging.
Are there any other ways I can reach VCs ?
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 ...
7
votes
2answers
638 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 ...
2
votes
3answers
292 views
Please help with a VC / startup deal
I and my friend are about to get a deal to fund our B plan. This plan aligns with the expansion plans of the funding company. The deal offered is that of partnership in which we two would be having a ...
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 ...
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 ...
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?
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
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
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 ...
1
vote
3answers
132 views
Starting New School
I'm starting a new post-secondary school (college) that is project-based and the curriculum is student-centered and have definitely bit off a lot to chew. Funding and a partner would be nice. ...
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
277 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 ...
2
votes
3answers
289 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 ...
0
votes
3answers
203 views
is there any well known funding model
hi we are forming a startup to implement a concept .. I got in touch with some funders they are asking about the funding model ... can anyone tell what a funding model should contain or what that ...
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
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 ...
0
votes
3answers
72 views
Where would one advertise for a lead man/woman?
We are seeking to bring in someone at a founder level that is connected in the Silicon valley investment circles. Is there anywhere in particular we could advert to see if anyone fits our group? Any ...
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?
0
votes
2answers
105 views
A few questions to help understand the ANGEL / VC “game”
Curious on thoughts about this topic. I will say for us it has been frustrating at times, we are sure it is for others.
From what we understand there are incubators, angels and early stage investors ...
3
votes
1answer
304 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 ...
4
votes
3answers
203 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 ...
1
vote
2answers
47 views
Should I raise FF funding before or after the Holidays?
Is it better to hit up your friends and family before the Holiday gift giving season or afterwards in the New Year? Assuming I have enough cash to wait till after the New Year.
Another factor is that ...
0
votes
4answers
524 views
Getting funding for marketing an iPhone app
I have almost finished developing an iPhone app which I feel has a lot of potential.
The problem is I have no money, and I am pretty clueless about marketing. So I feel if I tried to release it by ...
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?
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 ...
5
votes
2answers
501 views
What percentage to give advisors / VC matchmakers?
I've been approached by two startup heavyweights who offered to recommend me to VCs and angels for my startup (I'm the sole owner). They've asked me what percentage of equity I would offer them in ...
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 ...
