The investment tag has no wiki summary.
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 ...
9
votes
4answers
1k views
Advisable amount of equity to part with during seed funding
What is the advisable range of the amount of equity to part with during seed funding? If I give too much then I risk becoming an employee at my own company during a later round. Worse yet I risk not ...
7
votes
6answers
527 views
I'm declining investment offers. Am I doing it wrong?
I'm about to launch my web based business, and several friends/relatives offered to invest small amounts of money(5-10k) for a few percentages (1-5%) of my company. It's a side business for me as I'm ...
7
votes
3answers
815 views
Who are angel investors? How do they work out with start ups?
I have started a small software firm. Of course we need some funding. That's where I heard about angel investors. I would like know about angel investors and how start-ups normally work with them. ...
7
votes
4answers
276 views
I don't think I need funding, should I shop around anyway?
I'm making what I guess you'd call a website startup, at it's current state, I can do all the developing myself and I have a design coming along from my partner. Overheads will never exceed the cost ...
7
votes
2answers
286 views
Are patents worth investing in?
We have got patents for specific technologies in the past, they cost a lot and the value was not really visable.
We often develop specific algorithms for real-time systems and work with a range of ...
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
6answers
897 views
Examples of companies that made it big without outside investment?
We all know the legendary companies that became huge as a result of investors (both angels & VCs) but are there good examples of successful companies that took off simply on funding from the ...
6
votes
4answers
700 views
Typically, what percentage of the company is sold during each round of funding
Typically, what percentage of the company is sold during each round of funding: angel investment or seed round, and A, B, and C venture capital rounds. The goal, I suppose, is the hold enough back at ...
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 ...
5
votes
7answers
684 views
If I go to meet an angel investor without a business plan, will he dismiss my attempt immediately?
Can I probably get an investment from an angel investor even if I don't have a business plan? I have developed my website and my website is undergoing testing and it can be shown to an angel investor.
...
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 ...
5
votes
6answers
354 views
What are the steps to go from an idea to having a business?
Let me preface this with the fact I am not a business student. I am a computer science student but I have a great interest in creating a startup. These questions have probably been asked before, so if ...
5
votes
7answers
7k views
Can I start a company and sponsor my H1b to work for that company?
I am currently on a student visa (F1) at a community college. About two years ago I was laid off from work. My former employer had filed for my H1B. After the lay off I did a change of status to be in ...
5
votes
5answers
615 views
What is the best method for me to invest money into my own startup?
All of the current investors in the startup are also employees, and we're investing equal amounts of money into the company. What is the best vehicle for this type of investment, where ownership in ...
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
1k views
Compensation for co-founders and employees in a startup
In my earlier venture attempts, the scenario was something like 3 guys, each of whom would get 33.3%. I found out soon that this was silly because as soon as one of us lost interest, he could do ...
5
votes
1answer
192 views
When and how to “get out”? And some advice?
I have been involved with a technology startup in the UK from day 0, for over 5 years now.
The company is up to 800k+ revenue over the last year and was on track for a 150k profit. Unfortunately some ...
5
votes
2answers
113 views
When do you know it's time to pull out, and cut your losses/earnings off?
Sometimes the hardest thing to do is cut-bait, and walk away from a venture. What factors are the most important taking this leap?
4
votes
3answers
457 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?
4
votes
6answers
293 views
How to value a company that isn't running?
If all you have right now is an idea how do you value a company? See I want to build a software package and I have been doing research on my main competitors and such but at the end of the day how do ...
4
votes
1answer
121 views
When does the Series A round kicks in?
We are preparing a business plan for our next startup and this time we are planning to raise seed funds of $300K for 12 months with a milestone. We will enter the private BETA program for a group of ...
4
votes
4answers
150 views
Would it be smart to go straight to the big boys to implement an idea?
I have an idea that I want to bring to life that I believe will revolutionize the way we take care of our health and as a result improve our healthcare industry by reducing costs for health care. So ...
4
votes
3answers
178 views
How do you account for your time when asked how much has been invested in the company so far?
A potential investor is asking us to account for our own (so far unpaid) time when evaluating the amount of money invested in the company to date. How do we account for it - it's not like we've been ...
4
votes
3answers
389 views
I want to start an investment club
Ok gang, your input will be greatly appreciated here.
I have convinced 4 of my friends and relatives to join me in founding an investment club ( a la private equity or VC)
the idea is very simple: ...
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 ...
4
votes
3answers
221 views
Who uses “Self-Directed” Retirement Accounts to fund start-ups?
In the United States a retirement account like a 401K or an IRA can be incorporated as a "self-directed" account. A self-direct account provides you check-book control over your retirement account. It ...
3
votes
6answers
595 views
Where can I find businesses for sale? [closed]
I would like to buy a small business. Are there any sites that collects businesses that are for sale? I am asking about this in a general way, because that produces answers, which are relevant for ...
3
votes
7answers
224 views
What is the correct financial instrument if I want investors to pour petrol on my fire?
I have a killer Facebook app that is being built right now (will be finished by the end of May) and I’m looking for investors to come in after I have proved my numbers and dump gas on my fire, to ...
3
votes
8answers
694 views
Where should I go with just an idea, no capital or product or partners?
I have read the FAQ and hope that I have added enough detail to my question that it will not be considered to vague or open.
I have a great idea for a software product that I think could make a lot ...
3
votes
7answers
1k views
What do I need to convince people to invest in this company and how do I determine the initial investment?
I am planning for a company. The company will build a university. The company has a plan of 10 years to build the university and make it functional.
What I need now is investment. The question is how ...
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?
3
votes
4answers
312 views
Scenario: naive entrepreneur approached by angel investor
I am an aerospace engineer. On a whim I went to an entrepreneurial conference at the university that is in my town. And then, on a whim, at the evening pitch session, I pitched some hair-brained ...
3
votes
5answers
479 views
How long to wait for angel investor?
I have a big web project which I and my co-founder began our development on. We've been talking to our angel investor for a long time. He is very responsive but we cant get a final investment number ...
3
votes
2answers
301 views
What is the value of my IP (in terms of equity)
Here is the scenario:
I am the ceo/founder of a company that will be launching a website/application. The amount of cash I have invested thus far is less than 3,000.
I am currently seeking ...
3
votes
4answers
137 views
Keeping investors updated
Our company has attracted 14 private investors, each for relatively small stakes. They not only provide seed capital, but also diverse experience and valuable advice.
Can you recommend a ...
3
votes
5answers
531 views
Which one is more important: product or company logo?
I want to create a logo by outsourcing it, but since I have little money in hand, I'm in the middle of deciding whether I should spend it for the product's logo or the company's logo. I would need to ...
3
votes
6answers
628 views
Family money, now how much ownership do I give them?
I received family money to build a prototype. They gave me money with little questions ask, but expect to have some part of the action if the business actually works.
My question is, what kind of ...
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 ...
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 ...
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 ...
3
votes
3answers
2k views
How do I correctly document my initial investment and any ongoing investment in my S-Corp?
I'm starting a small business and have decided to form an S-Corp. Like many, my goal in forming an S-Corp is to avoid limitless personal liability and to take advantage of the (potential) tax ...
3
votes
3answers
204 views
Finding the right VC
I am looking for a VC that invests in the homeland security or access control industries...
Is there a website where I can search for VC's according to the field in which they invest?
I found VCDB, ...
3
votes
4answers
312 views
Found an idea whats the first thing to do? SEO, Finance… confused first business
Currently, I am listening to Dharmesh's interview on Mixergy.com.
I really like making websites, made tones of them, but to get them off the ground, is what kills me. Right now, I have a small ...
3
votes
1answer
221 views
Seed Stage - Structuring Convertible Note With Cap
I am looking to raise roughly 30k for product development-marketing in the launch of a tech startup. I will be raising the money primarily from people I know with a few contacts that I don't. They ...
3
votes
1answer
160 views
In seed funding, can the investment come from multiple sources?
I have two investors that appear interested in my concept. I am going to speak to one tomorrow. I intend to disclose to him that I will also be speaking with another investor very soon. If possible ...
3
votes
3answers
451 views
Legally advertising for cash investors
I'm a private real estate investor (not a company) looking to advertise for an investor/partner for startup capital. I'm looking for someone to be a cash investor/partner with me in acquiring single ...
2
votes
5answers
327 views
A con-artist or an investor
I have two potential investors: 1) My uncle - a trusted and wealthy family member and 2) "M.S." an unknown person that approached me after having heard my pitch and was "instantly enamored with my ...
2
votes
4answers
271 views
On a Startup, do you track your time as an investment?
I am starting a small venture to attack a niche. It might turn in something bigger, but it all depends on the trend that I am following.
I will put some money down to hire a sales rep, but most of ...
