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-1
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0answers
40 views

Comparing Investments: Selling land vs. starting a business [closed]

I have a situation where I need to compare some investing alternatives. We and my partners own a piece of land with high commercial value, that was bought 7 years ago. Now the real estate market ...
1
vote
4answers
39 views

Non-dilutable options

I have an entity I've been working on for roughly 4 years, the last being a real push to get it out the door. A student recently joined me and got us into a student business plan competition and we ...
0
votes
1answer
71 views

Partner Asking For Investment Back

I recently just started an IT business. I built the product and got the product out there and brought in clients already. I asked a friend to partner with me to build the company. I gave him 30% of ...
2
votes
1answer
31 views

Term sheet condition to use the investors law firm?

Our company has just received a term sheet for a convertible debt investment. One of the clauses states that we have to pay the fees for drafting the agreements (which I understand is normal), but ...
1
vote
1answer
46 views

LLC C-corp in US, how to report my own investment

I'm a single member LLC with C-corp taxes in the US, and I just started my entity in January. I'm trying to figure out how/if I report my own capital injections for expenses as regards my taxes. I ...
2
votes
1answer
87 views

Starting a hotel [closed]

I would like to start a hotel over the next few years. I know I will need a lot of capital to do so. I am working on getting the capital right now but I would like to know what a realistic amount to ...
0
votes
0answers
44 views

Angel or VC wants to invest, what are main arguments to negotiate shares vs investment?

what are main arguments to negotiate shares vs investment? I want to be prepared when the time comes and I don't want to figure out in the moment about the negotiation about shares split and how much ...
2
votes
2answers
69 views

What is a lead investor?

On TechCrunch, I often see articles saying Company FooBar raised $10M in a Series A round, lead by Ventures Inc. In this context, who are "Ventures Inc"? What does it mean that they lead the ...
2
votes
1answer
77 views

Share ownership in software spinoff

I have been employed at a research consulting company for several years. During the course of running research projects, I have developed software that I use internally to run some of my projects. ...
0
votes
1answer
94 views

How much equity should these founders have? [duplicate]

Me and my 3 partners are in the early stages of a gaming start up company. We are now looking to split the initial equity in the company because we are not all on equal terms. Person#1 is an ...
1
vote
2answers
75 views

Finder's Fees and SEC regulations

I've been advised on multiple occasions that agreeing to a finder's fee as a percentage of capital raised is illegal in the United States, unless the "finder" is a licensed broker-dealer. Despite ...
1
vote
5answers
162 views

When and how do I approach an investor?

I've been working on my startup for about 3 months now. Currently we have two active team members: a backend developer and a frontend developer (myself). Now we're looking to get investments so that ...
1
vote
1answer
36 views

How do I reflect my own investment in my C-corp for tax purposes?

I have a C-Corp I began, incorporated in 2012. To bootstrap the business, I've invested $30K of my own funds into the business, and now as the calendar year (and fiscal calendar) draws to a close, I ...
1
vote
1answer
50 views

Intentions of Pre-Product VC Contact

A VC contacted me about a few weeks ago and he has been wanting to speak just about every week to talk about my business idea. The idea is still pre-product,and very early on. What are the potential ...
1
vote
1answer
62 views

Equal partner is making demands that go back on our initial agreement in writing

I'll try to outline this quickly. Two equal, 50/50, partners - one is building/creating the product, running all operations, etc…the other is footing the bills and will be doing the sales. At the ...
3
votes
3answers
172 views

How to build personal credibility

Me and one of my fellow liked an idea. He said if I need investment for that start up, I will be happy to make. But that was more like a coffee table discussion which lasted for an hour. I think I ...
3
votes
1answer
75 views

Can you get a convertible note and then not going for a series A round?

My understanding of a convertible note is a loan that automatically converts into equity upon the closing of a Series A round. So what would happen if you get a convertible note, you grow fast and ...
1
vote
1answer
93 views

Is it unattractive to investors if I have a 51% Anti-Dilution Provision?

Will investors be turned off if i own 51% of the company and have an Anti-Dilution clause that keeps me at 51%? I expect I will go through several rounds of 3rd party investing in my start-up.
1
vote
1answer
73 views

Proof of investment in a company

I am just started my business, so I am trying to figure out the nuts and bolts of it. I am a single member LLC, but I plan to take more people on board as members in the days to come. When I make an ...
3
votes
2answers
169 views

What does anti-dilution protection mean in a term-sheet?

My question is in the context of a Term-sheet. I want to know what does anti-dilution preferences mean?
5
votes
4answers
215 views

What is a good range for the legal fees on first round of investing?

We recently closed a first round of investing for 3 million and paid in excess of 150k for our legal fees. We used a reputable firm and were lead to believe that the costs would be around the 50k in ...
2
votes
3answers
142 views

Unilateral equity investment by a founder

I am one of three founders (all part time) of a software start up which is still in early stages. Considerable effort has been logged even though no formal arrangements have been made. We have ...
1
vote
2answers
147 views

Can I give investors a cash return on their investments, instead of company equity?

I want to start a real estate renovation, redesign and buy-to-let company. I need 200k start up investment. I'm wondering whether or not I can simply offer each investor a 100% return on their ...
0
votes
3answers
399 views

How much equity to offer to investor

I am fully aware that this is asked frequently, but it will differ a lot depending on the type of business: I am just about to start looking for an investor for a startup in the UK, i dont want to ...
0
votes
1answer
82 views

How does dotSub make money? Can I find out if it is profitable?

DotSUB allows anyone to upload videos and provides an interface for subtitling them - to anyone. Looking at the subtitles and their timing of appearance, Khan Academy seems to have crowdsourced ...
0
votes
1answer
113 views

Determining fund raising stage for venture capital

I've been running a site (community platform) for a couple years and now we are growing fast, getting strong user traction and started implementing a customer oriented business model. In order to ...
0
votes
1answer
51 views

What is the interpretation of “full protection” here?

Excerpt from a Venture Capital book: If an investor with a $100M fund has set aside $5M to invest in a particular company over its life, what proportion of the $5M should it invest in the ...
0
votes
1answer
182 views

What is the procedure to finance a project?

A wealth individual would like to invest into a project where he would provide the funds and I would provide the management of the project. However, I am not too sure of the correct procedure to start ...
6
votes
1answer
266 views

When does the profit-sharing model break down?

Two co-founders and I have started a project that is going rather well. We sell a service that is paid on a monthly basis but that also has some up-front costs (revenues for us). Thus far we have ...
0
votes
3answers
171 views

Where can I find international seed investors?

We have just lauched a website for our upcoming SPARQL Database Server. We would like to attract the interest of international seed investors, but we are not sure where to start looking. We are based ...
3
votes
1answer
266 views

How to create a well structured term sheet?

I been asked by a potential investor to create a term sheet. What should such document include and focus on expect how much I'm asking for and estimated costs of running the start-up? Is there any ...
1
vote
1answer
220 views

Valuation of a pre-launch startup?

I would like to ask, if there any guide available on how to valuate your start up even before you launch you product? I am in negotiation with some investors and really have no idea how to valuate my ...
0
votes
6answers
189 views

We need to get off the ground

Over the last year me and a friend (a colleague I work with) have been planning developing a social web service that we feel has massive potential. We both have no business experience but are ...
0
votes
1answer
57 views

How long is the process for an IPO through an Investment Bank?

I am a novice in Finance,and is trying to raise capital for upcoming IPO. As I am a non-accredited investor I would like to know how much time does it take for an investor to raise capital through ...
1
vote
1answer
111 views

Where to raise funds before quitting a regular job and found a company?

I came across kickstarter webpage which offers an excellent opportunity to raise money needed to launch a product/service without prior personal financial investments. We are a team of engineers and ...
1
vote
1answer
72 views

Pondering Angel Investment

My startup has been bootstrapping for 4-5 months, we're at the point now, the other cofounder is working 40+ hours a week on a full time job at a company, would potential angels look down on this and ...
3
votes
2answers
346 views

Can you explain this angel Investment term sheet?

My startup received a Terms Sheet from an investor and my co-founder and I are trying to figure out if they are saying that they are going to want 30% of our profits at the end of every year or if ...
0
votes
1answer
92 views

Who are the most reputed Angels/VCs and what type of Businesses each of them Concentrate on

I am looking for funding, thus looking for angels in technology and trading. Is is possible to post sources of funding by area and stage. Also relative merits of each source. Perhaps links and ...
1
vote
1answer
90 views

How long does it take a company similiar to ebay to get investing [closed]

My Company is looking to get angel investing for a startup in order to provide more resources/time to various aspects of our business. How long does it take to sway an angel to invest? I know this ...
4
votes
2answers
611 views

Allocating equity - equal cash investment - unequal time investment

I am getting involved in a small start up - we have been discussing (3 partners) this for a few months and now is time to get everything settled. We originally discussed a certain time allocation 4 ...
0
votes
1answer
98 views

Best Structure for Investor Buyout

The company I'm an investor in requires a significant capital infusion, and is trying to find a structure to remove several current investors who are not participating in daily operations of company - ...
1
vote
2answers
70 views

Late Stage Investments

My partners and I have built our company from an $11K company to a $1.2M company in 5 years. We have an investor who would like to put $500K into the company to help us get it to the "next level". My ...
1
vote
1answer
80 views

How are investment funding valued when invested in a company before it goes public?

Is there are particular method for banks or individuals when their capital is invested in the company before going public. To make it more clear how was Facebook Inc. and Goldman Sachs deal valued at ...
2
votes
2answers
559 views

Is sleeping partner considered as investor?

My partner and i are from different countries (1) My partner will fund the startup idea (2) I will be the working partner and the idea will be executed in my home country Please give your advice on ...
0
votes
3answers
334 views

What will happen if an individual invest in the company before it goes public?

Lets assume the example of Groupon which is going to be public this year or next year.Suppose if someone invests $100Million in the company,will its valuation increase for the individual or for its ...
2
votes
1answer
164 views

Assessing the value of startup company for investment

We are a start up company set up 14 months ago. We were building few products which we could not finish yet. we plan to finish it in another 6 months. Since our initial budget were very low. We had to ...
0
votes
1answer
39 views

Can some wealthy investor invest or can have a deal with the compeny before it goes public?

Well I just had a question in mind that a wealthy investor invest his money in any IPO before it goes public.Said that I am referring through recent Goldman Sachs and Facebook deal worth $450 Million ...
0
votes
2answers
175 views

What are the requirements for raising capital for IPO through private placement?

Well I am trying to raise capital for upcoming IPO's.I would appreciate for the answer of these questions. 1.What are the requirements for raising capital by Private placement memorandum process. ...
4
votes
3answers
458 views

Does it make sense, if someone invest $100k on me and I'd only require $90k, I take $10k and invest it back on some other people?

Does it make sense, if someone invest $100k on me and I'd only require $90k, I take $10k and invest it back on some other people?
1
vote
1answer
47 views

How to summarize shares of angels repeating investments?

Provided I raise a first investment from angel on X valuation, then raise another one from same angel on X+Y valuation, what would be the total amount of percentage the angel will have of the company? ...

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