Tagged Questions

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 ...
1
vote
1answer
56 views

Finding Investors/partners to fulfill the following needs

You've probably heard this before, but I came up with the idea for great product and I developed it. I measured the demand for it personally, by demonstrating it to the target audience and got a ...
0
votes
1answer
139 views

Thoughts on offering Software development in return for Equity for a tech startup

I have been developing some software for an online venture in return for significant equity. I am working with another founder who is developing the business. The current thinking is to value our ...
1
vote
2answers
59 views

With the rampant invest-in-clone-markets system prominent in India, how does one pitch in for some fresh concept?

Angels and VCs in India seem to be living in a "third world" in terms of their risk appetite and appreciation of a new concept or idea. A major part of funding to startups in India goes to ...
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
3answers
151 views

Start up is getting offer to have website developed for “profit sharing”

I have an idea for a website that myself and a partner have started to get going. One of our first steps was speaking with a web developer. The site may run over our budget. The developer (who is a ...
1
vote
1answer
52 views

Should an entrepreneur pitch foreign investors

Should an entrepreneur pitch investors from other countries to invest in his venture? Are VCs actually interested in these kind of opportunities or it is expected to be a waste of time?
1
vote
1answer
98 views

Working @ Startup. Need help reading their most recent SEC Filing

Our Company just raised another round of funding (5MM). I took a peak at the SEC filing and it was confusing. See below: Total Offering Amount $18,500,000 USD Total Amount Sold $9,777,138 USD ...
1
vote
2answers
228 views

The Dream Team - What investors look for?

I know that the first thing investors look for is a good strong team. Until recently, I thought that just meant the founder and co-founders. However, I was just checking out angelist, and most of ...
3
votes
2answers
118 views

Buy or Rent/Lease

Assuming a venture-backed startup with seed financing that plans to raise further rounds: does it make sense to buy things or should it go for renting/leasing? "Renting" something (office equipment, ...
0
votes
0answers
48 views

equity arrangement for “Proof of Concept” before going to VC

Q.1 What value would - $100k cash investment by founders, resource time and development of IT and IP in testing proof of concept, and securing $100k revenue from testing PoC - equate to prospective ...
1
vote
2answers
167 views

How to kick start a web service with no working capital on hand?

I have a project on the table with a business model that involves creating a web service to streamline all the best pieces of internet marketing into one platform. Full details need to be kept ...
2
votes
1answer
396 views

What should we expect in an accelerator interview?

Checked, but didn't see an answer to this: My partners and I have applied to a NYC accelerator. They have invited us to do an in person interview to determine if our project is a good fit. Aside ...
4
votes
1answer
172 views

Finding Investors. Who can you trust?

I see lots of investor hunters or finders on the web, but who can you trust? For instance many want a fee upfront to introduce you to 10 or 20 qualified leads. This is mostly done via phone and email. ...
2
votes
1answer
80 views

Why would you want to avoid “participating preferred stock”?

There's a really nice info graph on techcrunch explaining dilution of stock. http://techcrunch.com/2011/10/13/understanding-how-dilution-affects-you-at-a-startup/ After reading it I wonder if ...
1
vote
6answers
444 views

How do you respond to an unfriendly VC?

I contacted a VC after being introduced by a mutual friend. A couple of days ago I received an email with an arrogant & a little too proud attitude. My options: Ignore him (I'm not dependent on ...
0
votes
2answers
247 views

Age of founder > brick wall (in front of?) angel investors/vc's

Legally speaking it isn't a problem that i'm seventeen years old, in my country it is allowed to start a business at 16+. A cantonal judge removed some other boundaries so that I'm now fully ...
5
votes
2answers
217 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 ...
2
votes
3answers
93 views

are VCs less likely to fund companies incorporated overseas

suppose I incorporate my company at Cayman Islands and then try to seek VC investment....are VCs more averse in investing in such companies compared to say incorporating in Delaware?
0
votes
4answers
386 views

What are the keys to writing a good teaser?

I'm curious what are the main things required to make a good 2 page teaser, to be presented to a potential buyer of a company, a European company. Some tips as well as links to examples would be ...
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 ...
2
votes
4answers
176 views

Odds of Finding Sponsor/Investor for New Website

I recently launched a website for developers (blackbeltcoder.com). It's a free site that will employ an advertising business model. I'm very pleased with the rate of growth in the just over three ...
5
votes
4answers
635 views

Does all money invested by VC/Angels go to the company's use or to founder's pocket?

Let's say when a one-founder company owns 100% share. He sells 20% to a VC for $1m. Does this $1m go to the company for its expansion, or founder's pocket, or just a percentage of this money goes 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 ...
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. ...
1
vote
2answers
151 views

Where do I find VCs?

I am making a new site, and I need some investors for it. The work is quite done, but I am unable to find people who would like to invest in the site. How and where can I find investors? Regards, ...
3
votes
5answers
418 views

Possible dangers in specific startup percentage scheme

first of all I need to tell you about my background. I am an Internet/Software engineer, came up with a great idea and little knowledge do I have about business. Fulfilling the need for a partner in ...
4
votes
4answers
216 views

How to get Investor's attention at the conference?

Here is the deal. I'm a Russian guy, living in Siberia. I have a great team and a prototype of a kick-ass project. I'm going to LeWeb 2010 (Paris), which is the biggest European Web conference. There ...
0
votes
3answers
72 views

Where would one advertise for a lead man/woman?

We are seeking to bring in someone at a founder level that is connected in the Silicon valley investment circles. Is there anywhere in particular we could advert to see if anyone fits our group? Any ...
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.
3
votes
2answers
231 views

Liquidity preference on “partial” liquidity event

How does liquidity preference work in a situation where the company was not 100% acquired? Do the preferred shareholders apply their preference then lose them pro-ratably on the next liquidity event?
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, ...