Questions related to receiving capital from external sources.
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 ...
2
votes
6answers
3k views
Looking for a list of angel investors? [closed]
Either angel investment firms or single individuals would be great.
11
votes
8answers
2k views
How do I get funding without “spilling the beans” on my idea?
I've got an idea for a product and I want to get funding. How do I go about looking for funding without telling too many people, or the wrong person, about my idea?
I don't want it to be stolen.
9
votes
3answers
301 views
What does it take to be an Angel?
I'm a wannabe Angel.
I don't sit on a huge pile of cash, but my intention is to help startups in whatever possible way within my capacity. I haven't made a decision yet, as this thought has recently ...
6
votes
5answers
3k views
Best start-up pitch videos
I was just watching a few of the TechCrunch50 videos, and I really liked the Yext pitch the most - http://www.techcrunch50.com/2009/yext/.
Any of you guys here have recommendations for some very ...
8
votes
2answers
303 views
How and When to Raise Funds For Your Company
Funding your company is an important part of your startup and expansion strategy. It's a broad topic that has a lot of aspects including: keeping your idea secret, seed funding, angels, venture ...
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 ...
11
votes
15answers
2k views
Do single-founder companies ever get funded?
Most companies I see funded usually have two or more founders. Do investors, angels or VCs, look down on one-man-companies? Are there many that get funded?
Or is it just that it's rare to have one ...
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.
...
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 ...
10
votes
6answers
647 views
Using consulting to bootstrap your software startup
I've been through some pretty brutal experiences recently with venture capitalists and I'm looking into ways I can start a company without VC money.
Has anyone out there used consulting to bootstrap ...
7
votes
3answers
306 views
How can startup be ready to defend IP/Patents if/when a competitor does infringe?
My startup is working on a consumer product (manufacture, sell, ship), where we have developed a really great improvement over our competitors. We have patent pending status, and will be entering the ...
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?
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 ...
8
votes
10answers
894 views
Funding : where do I start?
I am starting up an internet company based on an original concept. My strategy is to, first build the architectural base and implement the main use cases of my website and thereafter, look for funding ...
7
votes
8answers
1k views
Raising angel money as debt note or equity?
When raising seed investment from angels or family/friends, when is it best to raise it as a convertible debt note and when is it better to sell equity?
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 ...
6
votes
5answers
539 views
Just Been Through the VC Process: I Love to Be Transparent, but Wondering How Much is Smart to Share vs. Keep Private
Over the last 3 months, I've had more than 40 phone calls with partners at well-known VC firms, dozens of in-person meetings, follow-on meetings and partner meetings. We're nearing the end of the ...
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 ...
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 ...
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 ...
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 ...
5
votes
3answers
3k views
Why don't investors like to invest in an LLC?
I have read that if you are raising money, that an LLC is a dispreferred vehicle for your company.
Why do investors not like to invest in an LLC?
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
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
2answers
223 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
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
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
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
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
3answers
649 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
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 ...
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
4answers
293 views
What if we got funded?
What if we got seed funding (say $350k) and needed to find an iOS developer and backend web developer right away.
Do you:
a) Hire an agency to help develop the app
b) Find a freelancer to develop
...
0
votes
3answers
188 views
What are some considerations you should make when borrowing money from friends and family to seed a startup?
The question speaks for itself. There are similar questions, but I didn't find one that provides a checklist of things you should consider before and after borrowing money to fund your business.
I'd ...
