Questions regarding people or companies providing businesses with cash infusion(s) needed to finance its operation.
15
votes
5answers
944 views
Losing Controlling Interest in a company, can that be bad?
Basically I have been lucky to get spotted by some angel investors and will be signing £60,000 for 60% of my current business come thursday, which will really boost my start-up massively and ...
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 ...
10
votes
5answers
3k views
Should I pitch my idea to Angel Investors?
We have an idea for a website. I am a software developer, but I don't want to spend all my time creating this site that won't sell or be marketable or popular whatsoever, and make us no money.
Would ...
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 ...
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 ...
8
votes
2answers
303 views
How and When to Raise Funds For Your Company
Funding your company is an important part of your startup and expansion strategy. It's a broad topic that has a lot of aspects including: keeping your idea secret, seed funding, angels, venture ...
7
votes
5answers
958 views
Should I quit the company I founded?
I will try to make this short. About nine months ago my ex boss offered to invest in a company for me. Our relationship even when it was not romantic was deeply emotional. I care a lot about him as a ...
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, ...
7
votes
6answers
366 views
Sticky IP situation
We are in a sticky situation, that is no ones fault but our own. We had approached a developer to join our startup. After showing him the project he was excited and decided to join. Our mistake was ...
7
votes
8answers
2k views
Investor wants 51% shares of our company
We are five engineering students, going to start up a company.
As there are many competitor companies in the market, we were looking for an investor to start very big.
Fortunately, we found an ...
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 ...
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 ...
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.
...
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: ...
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
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, ...
6
votes
1answer
169 views
Good startups resources on Europe? [closed]
I'm looking to expand my network in Europe. I have a good set of US-based sources that enable me to stay updated and in the loop about startups, funding and the sort of things I'm interested in as a ...
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
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 ...
5
votes
4answers
829 views
How to justify ROI?
I very much apprectiate the responses from those who answered my questions on sensitivity and management. This is a followup question.
For every investment opportunity, there is the magic number, ...
5
votes
7answers
396 views
But can't that big competitor with lots of money do what you're doing?
I have a startup idea that improves upon an existing idea in a uniquel and differentiated way. Let's call my idea "David". However, there exists a very large, well-known competitor, "Goliath".
David ...
5
votes
5answers
601 views
I am the founder of a website. If I go to meet an angel investor,what questions will he probably ask me?
I have developed a website. It is under internal testing. My website is a platform. You can ask for people to do something for you and you pay them; on the other hand, you can do something for others ...
5
votes
2answers
416 views
What can Angel Investors do when the company is failing?
I'm an angel investor (B Round)of a new start up company. But unfortunately, the company seems to have failed. But the CEO never clearly says that the company has failed. So, what can I do. And most ...
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 ...
5
votes
4answers
194 views
Do I have to be physically present in SF to attract investors?
I have been reading articles by Paul Graham on start ups and am currently in the process of deciding where to incorporate. What baffles me is that most tech startups move to SF early on when the ...
5
votes
1answer
113 views
What to put in to a company pitch?
We have a project we've been working on as a side project (Web based education and training application) for a few months as more of a hobby than anything. Recently we were approached by someone who ...
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 ...
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
5answers
2k views
Is there an index of startup incubators around the world? [closed]
Is there a list of places like the YCombinator, CapitalFactory etc arranged by their geographic operating regions?
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 ...
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 ...
4
votes
1answer
213 views
Should I get investors to sign an NDA before sharing my idea?
I have an idea for a company and I want to share it with potential investors. I'm a bit concerned about my ability to protect the idea. Should I get them to sign an NDA? Would that scare investors ...
4
votes
5answers
536 views
Should you share your slide deck/pitch with investor?
I'm curious to here feedback on whether people think it's a good idea to share your slide deck after giving your pitch/presentation to a potential investor.
We just did a pitch...and had an investor ...
4
votes
2answers
291 views
How long should you keep your idea a secret?
I am a graduating senior in college studying computer science and machine learning. For the past year, I have been working with two other people on what we think is a pretty fantastic idea, offering a ...
4
votes
4answers
282 views
Mini-Site to attract Investors?
I have an idea about a web application type of website. I am wondering if I should make a mini site and allow users to sign up and get information about whats coming up. I can use the numbers of sign ...
4
votes
3answers
248 views
Is having a “day job” in addition to being Founder a plus or minus to potential investors?
Like many start-up Founders, I have not quit my day job. I will be thrilled when I can, but for now having to work double shifts is the only feasible way to make ends meet. This is even more true ...
4
votes
5answers
1k views
How to buy out an investor
Last year, we've created a partnership (LLC) and developed a software product that started bringing revenue of about $15K a month after only 11 months of development. One of the partners is an ...
4
votes
3answers
124 views
Talking to investors whose portfolio company is a competitor
We're trying to decide whether or not to talk to an investor who has invested in a lot of companies, and one of them has some overlap with our product but has a different business model (b2b vs b2c).
...
4
votes
1answer
221 views
Start up valuation - how much equity
Approached by 2 founders that are very early days of executing an idea.
They have some good .com properties that will be central to brand/idea and had recent offers around $100K, with one outlier ...
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. ...
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
1answer
148 views
How can a first time entrepreneur pitch himself to an investor?
The founding/management team is one of the critical areas investors look at in a startup. Usually the team is more important than the idea/product.
Investors like to see a proven track record of ...
4
votes
1answer
558 views
Do Angel Investors get paid before a successful exit?
We have a new startup and are trying to meet with some potential angel investors. We were asked if we have a ROI schedule. I thought that investors get paid only when the company has a successful exit ...
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 ...
4
votes
2answers
55 views
How do we communicate investment opportunity with video?
We have developed a great series of videos promoting an investment opportunity for one of our clients. The clients, and investor brokers love it. Now the challenge is how to show it on the website ...
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 ...
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 ...
4
votes
2answers
197 views
Consequences with investors if company doesn't meet agreed milestones
I have a few questions about promised milestones to investors.
Is it common to include very specific milestones in the term sheet?
What are the consequences if you fail to meet them? Losing Board ...
4
votes
1answer
142 views
I ran an ad and now an investor wants to invest in my project and he wants to do several things first. Is this an odd request?
He wants to open a Chase Bank account for the investment. So my question is how do I protect myself if for some reason this person is trying to lauder money through my project? What protection can I ...
