Questions related to receiving capital from external sources.
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2answers
303 views
VC funding and determination of a revenue model
In a recent group chat hosted by Joel Spolsky regarding the Stackoverflow Series A funding round, Spolsky was asked:
"How do you envision making a profit?"
to which Spolsky replied:
"...the whole ...
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7answers
260 views
“What does your website do?” My answer is
Suppose you are an angel investor and I want you to invest my website, you may ask, "Tell me, what does your website do?" I answer, "My website is a platform. You can seek for people to do something ...
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1answer
92 views
Is there a technical distinction between “early stage” funding and other “early” funding terminology
Is there a formal distinction between the term "early stage" funding and other "early" funding such as seed funding, angel funding and venture funding?
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2answers
86 views
SEEKING FOR START-UP FUNDING [closed]
I am an entrepreneur in Zimbabwe, Africa seeking for funding to start up an import business of mobbile phones and accessories in our country from China and Dubai. How can i easily get a partner or ...
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1answer
138 views
Outsourcing development with friends and family money
My cofounders and I have bootstrapped so far to get a hardcoded (doesn't connect with a server) iOS prototype for $10k from a local outsourced developer. We have no traction yet and are in need of ...
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2answers
123 views
Just went live and need funding- what do I need to prove?
I just launched an online platform that allows inidividuals to video chat based on their interests. Unfortunately, Sean Parker launched a similar concept last week but it just means we are both on the ...
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1answer
74 views
How to choose debt or equity funding
Does anyone have a methodology or logic for deciding on debt vs equity financing?
Specifically, for a software startup, where a lot of development has been completed and product is ready to launch. ...
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2answers
149 views
How Many Seed Investors Should we Approach
We are building a startup, we are a few weeks away from our MVP launch. We have had some initial positive investor conversations with an angel and a couple VCs. One large VC that generally doesn't do ...
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2answers
184 views
Monetization of a big open-source software frameworks
Let's consider jQuery is an example project for my question.
jQuery is the most renown java script open source software framework nowadays. It was created when working with JavaScript was a real ...
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3answers
135 views
Strategy to raise money for smaller market size
We have a niche business for a particular industry but with very good domain expertise and traction.
We have a few hundred enterprise customers and over 10 paying enterprise customers after just a few ...
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2answers
313 views
lifecycle of a startup funding and complete buyout?
I'm staring well a start-up :) Currently we are using internal funds, and by estimates it will last for a good while, but if our growth(users servers etc.) exceed our sales, sooner or later we will ...
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3answers
220 views
When asking for funds from an investor, how do I decide my own salary?
I will be speaking with a potential investor soon. And I will be quitting my job to run this startup. I will also be the only one running the startup for at least the first 6 months. How do I decide ...
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1answer
174 views
Example of new shares issued for investment and options pool in one round?
Please check my thinking.
Right now, founders own 100% of 1000 shares.
We're willing to sell 30% of the company to outside investors.
We want to set aside another 10% for an employee options pool.
...
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2answers
109 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 ...
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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 ...
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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 ...
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5answers
230 views
What Should I do as Founder
Hope you can help me out with little advice here. I recently founded a website and I have no technical programming. Perhaps I was lucky that I found a rich partner who can't work full time. But he has ...
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1answer
54 views
Going Public Through a Reverse Merger - Capital Pool Company
I am with a one year old startup. We had an offer to get public a couple of days after we started the company and nowadays more and more people ask me that. Reverse mergers and Capital Pool Companies ...
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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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3answers
125 views
Is it common to create several companies when starting a business?
I'm trying to raise a startup with three other people. The idea is to have a first prototype of the product and then seek funding. So far we have collaborated informally, but now we will go into the ...
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1answer
77 views
News source of companies who have received funding
As a CEO of a startup, I would like to stay informed about potential competitors. One source of such information would be to read news about startups that have received funding from investors. I am, ...
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2answers
236 views
How to decide on how much stake to sell in a SaaS startup?
I have a brand new tech startup. The system was developed over the period of 1 year, the website is ready and it also already has a couple of customers (non-recurring). The service was launched 2 ...
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1answer
125 views
Should you try not to give a concrete number to a potential investor?
When raising funds for a start-up with a working prototype/alpha product, should you refrain from asking for a specific amount? Or should you provide a preferred amount, and a backup plan for a ...
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2answers
177 views
How to get products on the market quickly and cheap?
I have designed several products that involve electronics. I do all the design, electronics, and building myself except for a few things. There is a market for these products although competition is ...
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4answers
310 views
Pair of engineers with code, should we walk away from founder? How much should we ask for ($$)?
TL;DR: Worked a year+ on code we still own, founder refuses to raise capital (wants to bootstrap) and is now low-balling us, we're willing to walk away--what would you do?
Long version (detailed and ...
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2answers
94 views
What advantages do tech startups with tax exempt 501(c)(3) status enjoy beyond tax exemption, if any?
This past March I co-founded a (for-profit) NV corporation, which created a Facebook App in the C2C social gifting space. This software, however, can be used in multiple industries, and I wanted to ...
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1answer
142 views
What rights do I have as a founder of a startup? What happens if I do not accept the VCs terms?
I am a founder of a startup with 10% shares.
We are in the stage of Series A financing.
The valuation of the VC is pretty low according to me.
Also the option pool that VC is demanding from us (common ...
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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 ...
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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 ...
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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 ...
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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 ...
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1answer
317 views
How to share the profit in a LLP company?
After successfully building an online business as sole proprietor, I decided register my company as Limited Liability Partnership (LLP) company. Now we are two partners. How will we share the profit ...
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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 ...
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3answers
262 views
Questions about capitalization
We have created a product which to date has been privately funded. From conceptual to working prototype with more success than expected. It is a B2B product and industry insiders see legitimacy and ...
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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. ...
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1answer
54 views
What are examples of terms on the far end of a funding round?
By "far end" I mean after the round is executed and some time has passed.
Do term sheets typically state what happens if agreed upon milestones are not met?
are there ever claw back provisions on ...
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1answer
99 views
Funding for a Discounts website start up thats going to promise over 95% saving
I am in the process of launching a website that would offer advertising discounts of any nature at just 1/100th of the cost of news paper ads or for that matter any other form of ads. To add advantage ...
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5answers
362 views
Startup Development Funding Path
I'm looking to do a internet based startup with a friend. It is heavily focused on the site development and although I haven't really made proper cost calculations yet, I'm guessing the initial ...
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1answer
157 views
Startup Visa: How can we secure funding from abroad? Is it flawed?
There is a proposal lately to push the US government to create a startup visa for brilliant innovators/entrepreneus from outside USA. With this visa, it is said that these innovators will be allowed ...
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3answers
378 views
Where can I find information on what ‘Web 2.0’ companies valuations are?
Does anybody know of any source where I can find out what 'real' valuations internet startups are getting?
The term 'real' valuation is totally made up, but I mean what actual investors are paying. ...
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0answers
29 views
Funding Campaign Guidance
I just launched a funding campaign at SellAnApp. I am emailing multiple blogs and forums to help me spread the word and gain some great traction but I am running out of ideas. If this was you running ...
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2answers
66 views
How is an ownership group formed?
I am interested in forming an "ownership group". I see the term all over the place, especially in sports, but can't seem to find any details on how these groups are initially formed. Is it a legal ...
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0answers
74 views
Is it possible to get funding to buy a Canadian non-profit company and turn it for-profit [closed]
I'm going to be vague and have used a new anonymous account to hide my identity because I don't want the other parties involved to know about my question.
I'm a developer who has been working on ...
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1answer
52 views
Should an entrepreneur pitch foreign investors
Should an entrepreneur pitch investors from other countries to invest in his venture? Are VCs actually interested in these kind of opportunities or it is expected to be a waste of time?
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1answer
60 views
overcoming permission matters founding in another country
This is about starting elsewhere and not in the country one lives in. The reason is that there are countries that appear as a better starting place than the country I live in; livelier, more open ...
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2answers
121 views
Reasonable compensation for building a product prototype
I'm negotiating a job to build a prototype for some people. They will show that prototype to investors and can potentially get funded.
Do people usually get compensated for this? If so, what should I ...
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3answers
2k views
Statistics about startup success vs. failure rates?
Are there any statistics that measure the success vs. failure rates of startups?
The definition of success would be to attract first or second round of funding and failure would be to not get anymore ...
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2answers
108 views
C Corp Investment Documents [closed]
What the appropriate documents needed for one to buy into a (Delaware) C Corp (private)?
What are the documents that the Company needs to issue in order to confirm the investment?
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5answers
222 views
Should i give 3% equity to this Incubator?
I have recently submitted an application to receive a government grant for funding. There is a requirement, that is to be submit via an incubator.
I contacted an incubator and they are ok with ...
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4answers
626 views
Should prospective investors sign non-disclosure agreements (NDAs) to keep your ideas safe?
Do you think it is important to ask Angel investors or VCs to sign a NDA before disclosing the details of your product ?
