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3
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2answers
268 views

Evaluating a “Promise” from a startup company for pay raise, benefits, stock options within a specified period of time?

I would appreciate any advice based on a current situation that I am in that I think a lot of people involved in startups (especially developers) find themselves in at some point. Basically, I'm in a ...
2
votes
1answer
242 views

Difference between strategic investment and venture capital

What are the differences? Or what are the other investment on a company we should watch out?
3
votes
4answers
1k views

How much VC equity stake for a product that is fully built for a mid-stage start-up company?

So I have a site that will accept subscriptions the first quarter of 2011. I have been developing this product over the past year and it is almost complete. I would like to use the VC money to help ...
1
vote
2answers
147 views

How can a company attract venture capital?

What are some ways that a company can attract investors? I am the proud owner of a profitable software as a service (SaaS) company and I need capital to grow. But this is more of a broad question. ...
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
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, ...
1
vote
3answers
215 views

Raise capital for idea, team and market

How do we go about raising seed money for our startup that is at this point nothing much but an idea (working towards a prototype), team (2 technical persons with over 10 years experience in ...
1
vote
4answers
173 views

Using a consulting development company vs Building your own team

Our team has a huge 7 digit venture capitalist funding and we want to make a web service that we get money on every time people use it. The software does not depend on us coming out with more ...
1
vote
2answers
110 views

Approached by investors from overseas

What types of things do I need to consider if I get approached from a venture fund overseas? I had an early-stage venture fund from Germany contact me looking to learn more about our startup and what ...
3
votes
1answer
197 views

Plain english translation of these finance terms

What does these mean in plain English, guessing the best way to describe it is by giving theoretical numbers for best worst case instances, though that's just my thought - I'll leave it up to you to ...
1
vote
3answers
380 views

Please help with a VC / startup deal / seed money

I and my friend are about to get a deal to fund our B plan. This plan aligns with the expansion plans of the funding company. The deal offered is that of partnership in which we two would be having a ...
2
votes
2answers
306 views

What is the best way to increase brand awareness when you have no physical building?

I have the most experienced and talented people (120 instructors making up 20 MLB teams) for teaching baseball in Minnesota but no one knows because I don't have a building (overhead). How do I get ...
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
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?
6
votes
2answers
252 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. ...
4
votes
3answers
253 views

How to earn VC/Angel Investor financial and technical talent support?

More specifically, has any of you managed to convince both financial support, and getting additional technical talent to support the expansion of a startup concept/prototype? If so, where and how did ...
1
vote
1answer
144 views

Planning for venture funding in India and the road ahead

I worked for few government organizations on contractual basis for four years. They were my premium customers for custom software applications. After freelancing for these many years and learning from ...
2
votes
4answers
161 views

Is it critical to partner with a local VC? East-West a problem?

I'm in NY. It's been suggested I limit the scope of my VC courting to my native coast. I appreciate the intimacy of the entrepreneur/VC relationship, but if I'm looking for early-stage funding, ...
3
votes
3answers
342 views

Deal Terminology - “$3M on $3M”?

When a VC says they want to do a "$3M on $3M" deal what does that mean?
5
votes
4answers
185 views

Does absence of competition put you off?

We're bootstrapping our latest business idea. Everything I've done has been boostrapped. This will be a complete stop and change direction (so could be a total distraction for a month while we ...
4
votes
5answers
189 views

VCs and vertical markets

I'm noticing a trend where VCs try to stay away from vertical markets. Is it true or is it my skewed experienced? How does one go about finding potential investors for a vertical market business?
2
votes
1answer
157 views

private equity deal for a 12mth old startup - any entrepreneur who has done this before?

[background:] we have a 12 months old startup in the services space with some awesome IP and so far 3 clients signed up for 48 months on average we are generating revenues and burning 4 times as much ...
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 ...
5
votes
5answers
157 views

Would a voluntary fee work?

"How am I going to make money?" This is the question that's been bouncing around in my head for the last few months as I've been developing my site. Allow me to beat around the bush here, in order to ...
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 ...
3
votes
3answers
122 views

Is venture capital appropriate here?

I'm a student and an iOS developer. I am trying to pay for advertising for my apps. Is this a situation where I'd want to raise venture capital? I develop my apps solo, sometimes my own ideas, others ...
1
vote
2answers
448 views

What are the differences between stocks, stock pool, shares?

Have read lots of different terms. I have no idea how they differ from one another. Things like, 20% stock pool for employees, and 1 million stocks, etc. Can someone enlighten me? Thank you.
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 ...
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 ...
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 ...
3
votes
2answers
232 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?
4
votes
3answers
415 views

What are the pitfalls of converting early employees' common shares to preferred and then selling them to investors?

This is a question about private, VC-funded, growth stage companies. It seems to be a new trend to allow early employees to sell some of their shares when the company does a new funding round. For ...
1
vote
3answers
284 views

How much do I have to share with VCs?

After a phone call, I had my first meeting with a VC 2 weeks ago. He sounded very, very positive, wanted to send me a contract w/ a term sheet etc; and since he has been pretty unresponsive and ...
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
4answers
569 views

Prototype ready, need funding in Vancouver, Canada. Is Angelsoft's Open Deals ($250 per month) a good idea?

$250 seems pretty darn expensive that they are charging. Are there any other ways I can reach VCs ?
2
votes
1answer
47 views

Is there a comprehensive list of publicly visible/advertised mega angels or micro VCs in the Toronto area?

Specifically, groups which are soliciting pitches, and located in Toronto (or, more generally, southern Ontario).
2
votes
3answers
292 views

Please help with a VC / startup deal

I and my friend are about to get a deal to fund our B plan. This plan aligns with the expansion plans of the funding company. The deal offered is that of partnership in which we two would be having a ...
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 ...
1
vote
1answer
278 views

How does option pool size at the time of incorporation impact valuation and funding

Suppose someone needs to incorprate a C-corp, for a high tech high growth business. How does option pool size at the time of incorporation impact valuation and funding. Or it only matters how ...
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
2answers
271 views

Would I have to patent my computer systems in order to produce them and sell them to markets?

Would I have to patent my computer systems (such as desktops and laptops) in order to produce them and sell them to markets? Similar to Dell and HP would operate.
1
vote
1answer
441 views

What is the best and least expensive way to trademark and patent your business IP internationally?

I am working on a start-up company to grow to become a big company to compete against some well known, popular, and in some ways powerful companies in the respective industries and markets today. I ...
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 ...
3
votes
3answers
201 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?
7
votes
6answers
528 views

First-time meeting with a VC and Angel Investor

Just to give some background, I'm building a software as a service offering which is almost in private beta and I have a few customers lined up to start using it at launch. Its a solo gig so far, and ...
1
vote
2answers
52 views

AR business concept

I would like to build a user friendly augmented reality web platform. Users would able create point of interests and features(lets call them "realitys") using an API similar to Google maps. Users in ...
2
votes
1answer
244 views

Amount of equity given from pre- and post-valuation?

If I know a startup has a valuation of $X million pre-money, received $Y million from VC and is now evaluated at $X+Y millions, how much percentage of the company were given to the VC? And if, say, ...
1
vote
2answers
303 views

VC funding and determination of a revenue model

In a recent group chat hosted by Joel Spolsky regarding the Stackoverflow Series A funding round, Spolsky was asked: "How do you envision making a profit?" to which Spolsky replied: "...the whole ...
4
votes
2answers
133 views

What's the process around transferring the cash upon a VC funding round?

Let's assume a startup and a VC agree to $X of funding in a Series A. What typically is the process (the mechanics) around transfer of funds from the VC to the startup? (A) Do the funds typically ...