Questions regarding people or companies providing businesses with cash infusion(s) needed to finance its operation.
3
votes
5answers
162 views
Is it possible to get funding before any sale?
I am curious, is it possible to get funding from investor before doing any sale? Any experience?
3
votes
3answers
74 views
When pitching to potentials investors, should I let them come to me with offers individually or have a set price?
I am about to put together a investor presentation for my company. I will be presenting to investors individually.The investors are going to be pitched to within a short amount of time.
Should I be ...
5
votes
2answers
1k views
I have a prototype, now what?
I've asked a few questions already on this site relating to what I should have in a business plan and how to focus on a prototype, preparing to approach investors.
OK, so I have a prototype, at least ...
5
votes
1answer
276 views
Do investors care about your technology stack?
I stumbled upon this quote on Rob Conery's blog, which referenced an old post by Robert Scoble in which the following was stated, concerning why startups don't use Windows:
They don’t want to take ...
2
votes
1answer
80 views
Protecting a prototype
I want to develop a prototype to demonstrate to investors my idea in a practical way, hopefully securing funding to develop a full working product.
My concern (however unfounded) is how I can stop ...
2
votes
1answer
101 views
Is an LLC the right legal entity when considering investors in the future?
My partner and I want to open a franchise restaurant. I primarily want to incorporate to protect against random lawsuits. We haven't decided between fully funding ourselves or seeking investors. If we ...
2
votes
2answers
297 views
Need simple pre-launch website to attract mgmt. team, investors, and co-marketing alliances
I am looking for a simple website solution for my pre-launch (and pre-funding) start-up to do the following:
Introduce the business without totally giving the concept away.
Have a web address as a ...
3
votes
2answers
117 views
Finding an appropriate website investor
If somebody has a website idea and make the website successfully (not on paper) and the local market is good (idea succeed) but he cannot extend the market because of management, finance and marketing ...
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 ...
0
votes
2answers
82 views
A Question on Stocks
I'm generally interested in how economy works, because i think it closely relates to businesses. I would like to ask something about stocks. Imagine that there is a company with 100 stocks. Now, the ...
6
votes
2answers
189 views
My sales person (independent, not employee) wants to be an angel investor
I started a surveillance technology company in May 2010. Since the beginning, we have been working with a person that has been in the security industry for quite a while. He was providing some input, ...
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 ...
0
votes
2answers
505 views
Startup Company and Equity for Members
Thanks for taking the time to read this post. I am looking for some advice on how to setup equity for members of my company, which is a location-based social network for iOS devices. As it stands ...
1
vote
2answers
105 views
Turn to investor or international company (start-up based on unprotected prototype)
I created a functional SW prototype intended for Xbox or PlayStation. It is based on very simple idea, which once presented can be simply stolen.
How can I protect my idea (prototype)? Will be due ...
2
votes
1answer
221 views
Structuing Equity Sale in Early Tech Startup
I have a few Angel investors, and a meeting next week with serveral VCs (brought to the table by the primary Angel), and I am trying to put together the equity sale package to present to everyone (VCs ...
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
163 views
What Can a New Website Offer in Return for Cash?
I've built a new developer website and have found some companies willing to discuss some sort of partnership. These are companies that sell products that would normally be advertised on sites like ...
2
votes
1answer
295 views
Investor Share Dilution Protection
When an investor invests an amount in a startup company exchange for equity, how do they protect themselves from being significantly diluted by a larger investor? And is that even an issue?
3
votes
1answer
119 views
Angel investor group has funded a similar but not identical startup?
So I was thinking of finding a connection to an angel group, but as it turns out one of the funded companies in there portfolio is a similar (but not direct) competitor. The platform / idea is close, ...
1
vote
2answers
71 views
Can VC be the customer?
I am working hard with lots of start-up clients on their business models. One of the critical issues that we keep coming back to is "who is the customer."
In my model the customer is the person who ...
0
votes
2answers
587 views
Burned out. Should we sell our SaaS business or find second round investment?
Hey my name is Chris and my wife and I started a web application in Brazil over 3 years ago.
As most of the individuals in this community understand the difficulties of starting a business(These ...
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?
3
votes
4answers
264 views
Getting in touch with investors
I am ready to get in touch with investors, what do you guys do.
1) Do you send them an email with your executive summary?
2) Send them an email asking if they would like to receive one first?
3) ...
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 ...
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. ...
0
votes
1answer
272 views
How to sell yourself to investors?
This is a question about methodology for newcomers in the business of lauching firms.
I propose that we list all the things that must be done in order to present a good proposal for potential ...
6
votes
3answers
744 views
25% for angel investor for 20k$
These days I am in process of raising 20k$ for my project (a facebook application), that requires at least 30k$ (10k of which I am able to come up with myself).
When negotiating with an angel investor ...
6
votes
2answers
342 views
What questions should a company expect from investors after a pitch competition?
The Northwest Entrepreneur Network's First Look Forum finale is a pitch competition followed by networking. During the competition, companies give a 5-minute presentation covering the basics: ...
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 ...
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
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 ...
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 ...
8
votes
3answers
1k views
Building Pitch Deck - Financial Projections and Metrics
I'm trying to understand how much info about projections I need to put on the pitch deck. I'm assuming investors don't want all the detail... just the high level numbers (revenue, profit, growth). Or ...
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 ...
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, ...
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 ...
2
votes
4answers
105 views
How investors decide, jockey or horse?
For your experience do investors bet on the jockey (founder-s) more than on the horse (idea), when it comes to startups?
Also what is general considered attractive investment opportunity when it ...
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 ...
4
votes
3answers
284 views
Getting an idea off the ground, and protecting it at the same time
This is my first question on here, so please excuse me if I haven't got used to any cultural norms this stack site has.
I have an idea, a great idea. An idea that I truly believe, with maybe a little ...
1
vote
2answers
256 views
Concrete examples of _why_ Silicon Valley is best for a startup?
I read here, and in articles elsewhere, about how important it is for a startup to be located in Silicon Valley. But they're all very vague, mentioning "the energy" or "the talent" or "networking."
...
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 ...
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 ...
1
vote
2answers
153 views
What counts as the “really secret stuff” which shouldn't be shared with potential investors?
After reading significant opinions on NDAs and how they might apply (see this article for example), I'm wondering, what counts as the "really secret stuff"? What's reasonable to keep a secret from ...
3
votes
11answers
6k views
How much equity do I give an investor?
If an investor gives about $20k for a startup business, how much equity should I give them? If there's a good chance that the idea could be worth potentially millions?
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: ...
2
votes
7answers
723 views
Private investor asking 85% ownership
I'm starting a new business and connected with a private investor via a personal friend. Negotiations started with him asking for 65% ownership for a $1 million dollar investment. I came back with 65% ...
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.
...
2
votes
2answers
179 views
What should I ask a startup's investors as a potential employee?
So, I was reading Guy Kawasaki's questions to ask a startup. One of them is to ask if you can speak with one of the investors on the Board of Directors. A startup that offered me a job asked me if I ...
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 ...
6
votes
7answers
687 views
How complete should my business plan be before I approach investors?
I know there are a number of business plan questions already, but my question applies to a specific aspect of the process.
As my partners and I are researching and developing our plan, I've been ...
