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10
votes
7answers
693 views

I've got a great algorithm, now what?

I have an algorithm for doing OCR (Optical Character Recognition) in a way that no one has ever done before. I've built rudimentary prototype software and I've tested my algorithm against the existing ...
10
votes
5answers
777 views

How do you determine how much to raise for seed funding?

Foreward: Assume the beta release had been executed with lean a startup model and had generated impressive traction within a single city launch. In preparation for investment proposals for a web ...
9
votes
3answers
709 views

How to get seed funding for non-profit?

I have a concept for a non-profit organization which would solve huge problems (think "climate change" for example) with money raised by aggregating very small payments from businesses for financial ...
9
votes
5answers
321 views

Looking for investment while still working full-time

I had it in my head (since I need my salary to pay my bills) that I would continue working full-time until either a) the business earned enough that I could quite or more likely b) we secured seed ...
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 ...
9
votes
3answers
395 views

Can a new company reimburse a founder for startup expenses after funding?

We have started a new web based service and are close to launching our prototype. So far the effort has been self-funded by me in amount close to $15k total expenses -- mostly for development. All ...
8
votes
2answers
309 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
2answers
663 views

Acceptable Incubator Terms

I have seen the various documents the incubators (like Techstars Seed Funding Documents) have posted. These all represent follow on investments after their program. What kind of terms can you expect ...
6
votes
3answers
1k views

Have any good tips for a TechStars application?

There are a variety of tips for YCombinator, but we haven't been able to find anything related to TechStars. Anyone out there have experience with them?
6
votes
3answers
753 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
4answers
703 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
2answers
253 views

When do you start searching for VC's?

I was reading this article on traction and it had an interesting comment in it: If you wait until you're "ready" to fund you're too late. Funding is about developing a relationship over time. ...
5
votes
5answers
327 views

How to bootstrap when you have a high social overhead?

I love the idea of bootstrapping, but when I hear the bootstrapping evangelists talk about what it takes, they basically portray a lifestyle that only makes sense for a single person in their early ...
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
166 views

When can I start using CrowdSource Funding?

Now that the JOBS Act has been passed and signed when can I start raising capital through CrowdSource Funding?
5
votes
2answers
362 views

At what point should we apply to an incubator?

General Question: Given that incubators are focused on early-stage companies, how far along should a startup be before it applies for consideration by an incubator? How strong must the team (and ...
5
votes
2answers
506 views

What percentage to give advisors / VC matchmakers?

I've been approached by two startup heavyweights who offered to recommend me to VCs and angels for my startup (I'm the sole owner). They've asked me what percentage of equity I would offer them in ...
5
votes
2answers
559 views

A few questions about Seed Funding!

First of all, this website has been greatly helpful to understand various things about startups. I am glad I found this website. I am starting a company (A web-based startup). I am pretty much new to ...
4
votes
2answers
299 views

How effective are crowdsourcing sites like Techmoola.com and Kickstarter.com to raise seed money for tech companies?

I recently started a medical tech company in Chicago and want to know what would be some common dos and don’ts when approaching crowdsourcing and group funding? Although I read more and more in the ...
4
votes
5answers
226 views

Fundraising seed capital with just a business plan and no product

We have a great idea for a product in a niche market ripe for a paradigm shift on the way business is done. All we have is a kick-ass business plan with detailed projections, costs, marketing, etc - ...
4
votes
3answers
3k views

Where can I find samples of good one page executive summary for a business plan?

We are applying for angel investment for our startup and looking for some samples of one page executive summary. Please share if you are aware of any. Thanks,
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
3answers
203 views

Is an experienced accountant necessary for an s-corp formation?

I need to form an s-corp in Delaware. The corporation will be taking on angel funding as soon as it is formed. I have retained an attorney experienced in the formation & funding processes. The ...
4
votes
1answer
222 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
2answers
665 views

What does a seed money deal look like?

I have a personal contact that has shown interest in giving me seed money for a start-up. I am getting my package together to pitch the concept, and have virtually no idea what the investment deal ...
4
votes
3answers
224 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
3answers
202 views

Will a VC give me seed money even if my idea is not unique but viable?

I want to start a small local business. There is nothing unique or innovative about it, but there is enough demand in the market. I have no college education. Will VC still consider me?
3
votes
1answer
308 views

Are there any grants for starting IT business in India?

I have a unique and viable idea but no seed money. I also have low qualification (no college education) so no chance of funding by VCs. I am aware of many programs by US and other governments. Are ...
3
votes
2answers
765 views

Founder stocks and Employee pool

Is it common to issue equity to CEO as Preferred stock but other co-founders as Common stock? When setting up a 20% employee pool, it is common to have terms that the unissued equity will be issued ...
3
votes
5answers
306 views

Starting New School Revenue Streams

Hey guys, it's me again. As was to be expected, I've run into funding problems with Idea School. The quality teachers I'm looking for are worth about $50-60K per year. Now, of course, they ...
3
votes
3answers
128 views

What disclosure can a seed investor expect from the company, after the investment is made?

I have made a seed investment in a startup. What level of disclosure and updates can I expect from the company's management without getting in their way? How frequently should I receive financial ...
3
votes
1answer
606 views

term sheet vs convertible note

I have been talking to the people in angel circles and it seems that everyone takes only term sheets; and convertible notes are almost like an insult. My questions is: when I can start offering ...
3
votes
2answers
146 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 ...
3
votes
1answer
179 views

How can I get seed funding for an educational startup?

I have looked into Imagine k-12, and sadly they are closed to new applicants right now which I'm super bummed about, and NewSchools. How else can I get seed funding for an educational startup that is ...
3
votes
1answer
222 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
3answers
281 views

How do I close my *second* round of investing when the first round VCs pass?

I already got my first round, piece of cake. We had a million dollars sitting in the bank. But now we've burned through it, and we need to raise again. I'm worried that the pressure from having a ...
3
votes
1answer
161 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
238 views

Thoughts invited on unconventional ways of raising money

As I learn, fundraising is always a nightmare. It drains a considerable amount of energy. No matter how promising the pitch you make, it's not sure to entice an Angel or a VC. Even if they agree, it ...
3
votes
3answers
246 views

Liquidity preference with angel investors

Is it common for angel investors to ask for liquidity preference with participation?
3
votes
1answer
115 views

Starting a venture with zero capital of my own

Will i get seed capital / angel investment for my venture if the capital that i am putting myself is zero? I mean my venture has a fund requirement of INR 2 Cr for the next 2 years, after which it ...
3
votes
2answers
153 views

Seedfunding Criteria and how do angels and VC's like it?

After several pitches we've kinda positive of closing our seed-funding (amount X) round, which is being funded by my family friends. However, very (un)fortunately for us, the seed investors aren't ...
2
votes
3answers
155 views

How do you put a price tag on fame and mentorship from an early investor?

We're sitting with a situation where we have been given two different offers for seed investment. The first is more than double the amount of the other, but from someone not in the tech industry, and ...
2
votes
3answers
291 views

Where do you find startup capital?

I'm in the early steps of putting together a business plan. When it's finished, I'm definitely going to need to secure funding. How do you go about finding potential investors? Tips to consider on ...
2
votes
2answers
340 views

What do people think of using Kickstarter for initial financing?

After seeing how well Diaspora did in raising funding I've been thinking (as others have I'm sure) of trying to use Kickstarter for some initial financing. In my case it would be enough money so that ...
2
votes
2answers
183 views

Will an angel investor be turned off by the founders not wanting to quit their day jobs just yet?

....my co-founder and I are working on a SaaS product and there is a chance we may seek an angel investment. Do you think us wanting to keep our day jobs for 3-6 more months will be a turn-off to ...
2
votes
2answers
142 views

Can a firm buy itself?

Suppose you got scammed by an incubator, who is however apparently willing to sell his shares (which are now worth a couple times more than the initial injection (which effectively did nothing)) ...
2
votes
1answer
241 views

Pre / Post Money - What Are They? And Should Pre be 2x More than Post in Series A?

I am not (yet) active on a startup of my own but I have been trying to read and educate myself in that arena so that I can at least coherently talk and ask the right questions of the people who I'll ...
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
1answer
1k views

Appointing a CEO - KPIs and what to expect from them year 1 and beyond

We are just moving into the realms of appointing a CEO and are unsure of what we should expect from a CEO We have never done this before and are very green in this particular area. I know we have a ...
2
votes
1answer
84 views

Have good MVP, need capital to grow, new to getting funding

We have what we believe is a pretty solid MVP for a enterprise software product. Without much advertising, we've had people find our website and purchase and use the product, and the initial feedback ...

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