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2
votes
6answers
916 views

How much equity am I worth?

I had a problem that required a database solution. I designed the concept of the database and over a 2 year period developed a crude system that worked. In trying to find help with the programming ...
2
votes
2answers
1k views

How do I classify money I put into my own business for tax purposes?

S-Corp. I am currently the only shareholder. Doing taxes for my first year. How do I properly account for money I've put into the business both in my accounting system, and for tax purposes? Is it ...
2
votes
5answers
286 views

Are loans from Individuals common for startups? Is it a good way to grow?

I am the owner of a website that distributes digital content (photo/ footage/ music) for the film, interactive and media industries. We launched four years ago and are among the market leaders in a ...
2
votes
4answers
922 views

Angel Investment Negotiation

my partner and I are creating a start-up and I was wondering if anyone could give me some advice about negotiating with an angel investor. The start-up is a social networking website for pets. We have ...
2
votes
5answers
355 views

Startup in a 3rd world Country, What are our options?

I co-founded a startup that has a product belonging in the social media space and will launch a public beta in two weeks. We are located in the Philippines but we are targeting US/UK users. I am ...
2
votes
1answer
115 views

What happens when I issue shares and nobody buys them?

After launching the prototype and getting some pretty exciting customer feedback over the last six weeks, we want to raise a little investment money. We're talking with several organizations so far. ...
2
votes
2answers
157 views

Angels or VC's - What should a free web application do to attract their attention?

Is traffic, retainability, volume, constantly growing registration and users base enough to be able to attract VC or angel investment? I am talking about an already launched free web application, not ...
2
votes
1answer
1k views

Raising seed capital without too much dilution

My company is in the process of raising additional capital for my semi start up website. Currently we are in a beta testing phase with the intent of testing the functionality of the site on a larger ...
2
votes
3answers
1k views

Co-founders unequal shares but how about initial capital injection?

Currently I'm working on a project together with 1 co-founder and soon we are going to incorporate a company. We agreed that I get 70% shares and he gets 30% . The reason is because I started the ...
2
votes
2answers
68 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
2answers
555 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 ...
2
votes
1answer
164 views

$50,000-250,000…? Thoughts Please

WE are just about to roll out our pivate equity fund, the raise is 100MM. Over the years we have accumulated many 50,000 type investors. What would you suggest is the minimum investment amount? How ...
2
votes
1answer
76 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. ...
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 ...
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 ...
2
votes
2answers
78 views

Resources for Identifying Fraudulent, Shady, or Fly-by-night Startups

What ways are there for potential co-owners and equity holders to check up on start-up companies to make sure they are actually established, legitimate and reasonably funded operations?
2
votes
1answer
222 views

What are the standard fees for intermediaries?

I am a professional consultant with a network of solid contacts in the real estate field. Currently I am in the "start up" phase of my firm and trying to figure out "FEES". I am aware of the ...
2
votes
1answer
30 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 ...
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 ...
1
vote
3answers
336 views

Is it necessary for a co-founder to invest money when starting a startup?

Is there a requirement for such stuff where a co-founder actually have to invest a proportional amount of money when setting up their startup as a business/company? What if they just come with ...
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
3answers
209 views

Which VC firms are in the New England (East Coast) area?

Are most technology based venture capital firms headquartered in California or are there also plenty of venture capital firms in the New England area (New York, Boston, etc)?
1
vote
4answers
2k views

Someone wants to invest in my project

Someone wants to invest in my idea. I'm building this project and it's a very good idea. I'm thinking about starting my own company for this project. This person heard about my idea and he is very ...
1
vote
3answers
138 views

How can I align my business with my life goals?

These things I am bothered by my business. You know, every one of us needs to make money. I decide to do it by creating my own business and preparing to do investment. I want to live around developed ...
1
vote
5answers
164 views

Is it better to have a formal contract on ownership prior to accepting external investment?

Not assigning anyone any equity until we get funding, despite that fact that I am the tech.-cofounder i need to start developing a demo to show investors. Should an actual contract really be worked ...
1
vote
4answers
132 views

Shared investment platforms

I'm very excited to see this beta version of the stackexchange platform! I just had a question I'm sure you guys can answer : I'd like to invest a percentage of my money every month in startup ...
1
vote
2answers
144 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 ...
1
vote
2answers
227 views

What are questions every VC should ask a startup?

Believe the question explains itself, but if you have questions, just let me know.
1
vote
1answer
316 views

Issuing new shares

I set up a company with 1 share. The company is now attracting investment for which we will offer, in total, 20% ownership of the company. These would be B Ordinary Shares - with the only difference ...
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 ...
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
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 ...
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
2answers
130 views

CEO equity when new investor comes along

I'm the co-founder and Managing Director of a start up backed by angel money. There are three partners. I run the day to day business and moved it from launch to major player in the market in a ...
1
vote
3answers
162 views

Can an investment agreement take place online?

Can an investment agreement take place online without entrepreneurs meeting with the investors? If yes, then what is the best procedure. Most of the time Investors want to invest in a startup but ...
1
vote
2answers
60 views

Need help determining the next step in financing my company

So my company has gotten money from the bank and from government groups. We have used about 100k so far and we need at least 50-250k to achieve short term sales. We have created some valuable ...
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
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 ...
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 ...
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
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 ...
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 ...
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? ...
1
vote
2answers
228 views

I have a static prototype, can I get angel investment?

I have a static prototype for a very promising company. The prototype is not dynamic, just made to show how the site works. I need an investment to actually develop the functionality and get some ...
1
vote
1answer
56 views

When sending money from an office in one country to another, if this money is sent via credit/debit card payment are there any tax implications?

One of the company's co-founders is investing and to avoid high fees I suggested we use our merchant account whereby he will make a payment online and then I will receive the money in the UK. Is this ...
1
vote
2answers
298 views

List of VCs who are interested in early-stage web technology investments

There are some VC funds who only invest in late-stage companies and some who focus on early stage I am trying to find (or build) a list of those who are interested in taking part in early-stage ...
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 ...
1
vote
2answers
94 views

The easiest way to angel invest between two countries?

Is there a quick and easy way for a person based in Europe to invest in a startup (incorporated) in Asia?