Questions related to receiving capital from external sources.
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.
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 ...
11
votes
14answers
52k views
What are going rates for finders fee?
When trying to raise money, what are the going rates for finders fee? Also, who pays the fee: the investor, the entrepreneur or the company that is getting the investment?
Does it change with the ...
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 ...
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 ...
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 ...
9
votes
18answers
2k views
Didn't finish grade 12, currently unemployed, but have a great idea for a startup: Where to start?
I think I have an awesome idea for a web startup, but I'm not sure if I have a chance because I'm not a web developer, am currently unemployed, and can't afford to hire anyone to develop my idea (I ...
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 ...
9
votes
7answers
463 views
What is more important - having funding or keeping control?
I am starting-off a venture with limited capital that will be sufficient to keep my business afloat for at least 12-18 months. I believe that my product will get some traction during this period, ...
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 ...
9
votes
3answers
300 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 ...
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 ...
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 ...
8
votes
2answers
302 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
3answers
304 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 ...
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, ...
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?
7
votes
4answers
306 views
When is a niche too small?
I'm interested in developing a product for the sport of paintball. It has an estimated 10+ million participants (3rd largest extreme sport), though I'd be targeting the real enthusiasts of the sport ...
7
votes
2answers
637 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 ...
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 ...
7
votes
2answers
148 views
What type of funding are you using?
I'd like to start a thread discussing the type of funding different startups are using and why. I think that there are a lot of people here who would like to hear the general experiences, advantages, ...
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 ...
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 ...
6
votes
2answers
381 views
Why does a web startup need millions on VC capital?
One of the great benefits of the web application business is that startup costs are generally fairly low compared to brick and mortar businesses. Web hosting is getting cheaper and programming costs ...
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.
...
6
votes
1answer
231 views
Investor documents during fund raising
I have few question related to fund raising
When you are raising money from VCs, what type of documents are expected from you?
How much of your internal and confidential data/stats do you reveal ...
6
votes
6answers
264 views
When, and how should I think about getting money out of a free site/service?
How to (slightly) monetize a tiny niche website... when it's free to use?
I'm developing a small niche website to help an airline worker I know solve a problem she faces fairly regularly. It seems ...
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. ...
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 ...
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 ...
5
votes
8answers
7k views
What does traction really mean?
I've heard alot from this forum about traction. I tried to look at the meaning in the dictionary, but I somehow can not relate it with a startup. So what does it mean by traction and how does that ...
5
votes
9answers
742 views
Start up needs advice on getting customer B2B
I am founder of an online mobile marketing company that sends text coupons and promotions to cell phones. Our customers are local small businesses who wants to send their coupons and promotion to ...
5
votes
5answers
601 views
I am the founder of a website. If I go to meet an angel investor,what questions will he probably ask me?
I have developed a website. It is under internal testing. My website is a platform. You can ask for people to do something for you and you pay them; on the other hand, you can do something for others ...
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 ...
5
votes
3answers
387 views
Evaluate an offer for a startup advisor
My co-founders and I just began searching for $1.5-2M of funding. We met with someone who has many contacts and friends who are angels or VCs.
After meeting with us, he surprised us by offering to:
...
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 ...
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?
5
votes
2answers
216 views
How long to wait for investing?
I'm the tech guy and doing a lot of technical development for the startup.
How long does one wait around for the business people to get funding from VC's and Angels? is there a ballpark of how long a ...
5
votes
5answers
446 views
What to do next for my online startup?
Ok so I've left my job, I've got a business plan, I have a blue ocean idea, I've spoken to a few industry people about the idea and they think its a good idea. I have a designed and paid a programmer ...
5
votes
3answers
304 views
Getting VC funding but one partner doesn't want to dedicate full-time
I would really appreciate your guidance and advice. Great community.
I am a co-founder of a two year old start-up that is finally getting proper VC funding ($1MM injection). Currently, the founders ...
5
votes
2answers
277 views
Real-life scenarios of encounters with VC/Angel funding?
I've started lately to think about what's common sense when it comes to seeking funding from VC's or Angels. So What I would like to do is spend a few hours on reading some stories by actual ...
5
votes
2answers
111 views
Business plan with failure scenarios
I am helping a friend with some short to medium term scenarios/ projections for a business plan. I worked out some failure scenarios as in if the business folds in 6 months we will be able to salvage ...
5
votes
4answers
161 views
Talking about fundraising with employees
I'm in the middle of raising money for my startup. We have had some initial success (and lots of failed attempts!), and are getting close to finalizing our round. We are a very small company right ...
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 ...
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 ...
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
5answers
261 views
Is 17 too young to apply to Y Combinator or any other incubator program
We are team of two 17 year old students with an "idea". Is it possible to even be considered for Y Combinator etc. We realize we dont have much credentials in terms of experience and education but do ...
4
votes
8answers
274 views
Traction or Lack of Capital, which is greater problem? [closed]
Lack of capital or not having enough traction, which is a greater problem for your startup or business? I believe you can get traction with lack of funding....where there is a will there is a way, ...
4
votes
6answers
300 views
To Build or To Mockup?
I have a desire to build a software package in a niche area that already has some established competing products. I believe my Feature Set and ease of use could propel me well in the market. Most of ...
