The venture-capital tag has no wiki summary.
11
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15answers
2k views
Do single-founder companies ever get funded?
Most companies I see funded usually have two or more founders. Do investors, angels or VCs, look down on one-man-companies? Are there many that get funded?
Or is it just that it's rare to have one ...
10
votes
5answers
409 views
Old and wise developer - Startup founder newbie
I'm a software developer/development manager with more than 18 years of hands on experience. For a year now a wonderful idea has fermented in my head. All the research I've indicates there is no ...
10
votes
1answer
1k views
Why do startups need so much money?
What are startups raising millions of dollars for? I know running a website can get costly, but seriously, millions? I just don't get it. And if you say advertising, I still don't get it, because the ...
9
votes
5answers
391 views
When should I leave day job to pursue startup full-time?
I am trying to determine when I should quit my job to pursue a startup. Here is what I feel are the pros/cons of leaving
Pros
Can focus more / no time constraints
Iterations are much quicker (I do ...
7
votes
4answers
667 views
When is it a bad idea to bootstrap?
There are two types of startups - those who try to get big quickly and then figure out a way to become profitable, and those who are profitable from the beginning, but grow much slower. The first type ...
7
votes
4answers
444 views
7
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3answers
320 views
Getting Funds for a Startup
Im starting my Startup with $0, a Mac, and A Windows. I need Startup Money but I don't want to get it from Venture Capital. What kinds of Methods are there?
Thanks
7
votes
6answers
526 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 ...
7
votes
10answers
1k views
Which are the most successful university-associated incubators?
I've been asked by a [very excellent] university to help them start an incubator that will work with faculty & students to build in-lab technologies into fundable start-ups.
[Most everything will ...
6
votes
5answers
539 views
Just Been Through the VC Process: I Love to Be Transparent, but Wondering How Much is Smart to Share vs. Keep Private
Over the last 3 months, I've had more than 40 phone calls with partners at well-known VC firms, dozens of in-person meetings, follow-on meetings and partner meetings. We're nearing the end of the ...
6
votes
6answers
722 views
Can a consumer oriented startup be .NET based?
I'm about to join a new startup as their CTO and we need to choose our server software stack. The client side is a mobile application (Android, iPhone, etc.) so the server side exposes an API and ...
6
votes
2answers
381 views
Why does a web startup need millions on VC capital?
One of the great benefits of the web application business is that startup costs are generally fairly low compared to brick and mortar businesses. Web hosting is getting cheaper and programming costs ...
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
4answers
348 views
What are the steps for getting a tech startup off the ground when you're the only team member?
I'm a software developer with over a decade of experience writing code. I've recently had an idea for a tech startup and am in the process of creating a prototype website and a pitch deck for the ...
6
votes
1answer
231 views
Investor documents during fund raising
I have few question related to fund raising
When you are raising money from VCs, what type of documents are expected from you?
How much of your internal and confidential data/stats do you reveal ...
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 ...
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. ...
5
votes
7answers
427 views
As a potential employee, should I frown on “zerg hiring”?
In my job hunt, it's incredibly common for me to run into startups that have say 3 people and then have the CTO tell me "We just closed a round of funding, so we're looking to hire 3 or 4 more ...
5
votes
4answers
634 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
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 ...
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 ...
5
votes
3answers
3k views
Guide on writing a good business plan for a technology startup
I'm looking for advice on writing a business plan for a VC or Angel investor in the technology field. What are they looking for in a business plan/pitch?
There are some good basic guides on creating ...
5
votes
2answers
216 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
3answers
1k views
The Startup-CEO Roadmap - What's the best approach for being a great startup CEO?
At best it's a tough job and at worst its an impossible job. I've hear experienced CEO's complain about investors that "they love you 'til they hate you". Over the course of a number of CEO gigs or ...
5
votes
2answers
786 views
Does Anyone Have Good Examples of “After the Fact” Pitch Decks?
I know that no one in there right mind would circulate a deck publicly while they were out pitching their company. However, it would seem that a deck from a successful round 5 or 10 years ago would be ...
5
votes
2answers
144 views
VC Option Shenanigans
My company is being acquired by a public company (both US based). When we were all hired, our employment contracts stated we'd be granted x number of stock options. I'll say 250,000. That was 3 ...
5
votes
1answer
163 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
277 views
Real-life scenarios of encounters with VC/Angel funding?
I've started lately to think about what's common sense when it comes to seeking funding from VC's or Angels. So What I would like to do is spend a few hours on reading some stories by actual ...
5
votes
4answers
161 views
Talking about fundraising with employees
I'm in the middle of raising money for my startup. We have had some initial success (and lots of failed attempts!), and are getting close to finalizing our round. We are a very small company right ...
5
votes
4answers
453 views
Old question again: how does one valuate the startup for VC purposes?
I've been running a bootstrapped startup since last year and am running into definite limitations as to what I can do without further funding.
Startup enables elasticity for Microsoft's cloud ...
4
votes
7answers
475 views
When do I know it's time to approach VCs (or do I need to)?
I have a startup that owns a product. The industry response about the product has been very encouraging and articles have been published on tech blogs about its superiority. The cost to run the ...
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 ...
4
votes
1answer
328 views
What are some resources to watch example pitches?
I like to learn by example so I am trying to find sites that are putting recorded pitches up online.
Examples would be:
Shark Tank on Jason Calacanis's This Week in Startups - ...
4
votes
4answers
169 views
Two questions re: taking seed funding from a large VC
We're looking at a possible seed deal right now. It's $750K from a firm who has a current fund size around half a billion. I have two questions.
Has anyone ever seen a seed deal where the firm ...
4
votes
3answers
227 views
What has been your experience with VC/Angel Investor funding?
Have you taken VC money or angel investor funding for your enterprise? At what stage? What has been your experience so far?
I know Joel advises against it and hasn't used VC money so far, and I ...
4
votes
4answers
662 views
How does someone become a VC and what is their relationship to both the startup and the actual money?
I would love some clarification on VCs. I'm trying to "follow the money", if you will. A few questions answered on this subject would help me greatly.
How does someone "become" a VC? It's not ...
4
votes
1answer
171 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
5answers
318 views
Challenging the traditional business rules, is it bad if planning on trying for VC funding
I was thinking about this question recently:
http://answers.onstartups.com/questions/4094/advice-resources-on-performance-reviews-for-employees
I also enjoy this article:
...
4
votes
5answers
201 views
Are there European Union funds for tech startups?
We are a young team willing to launch a tech startup (we have the product ready), and we are looking for funding to develop it further. We are looking to take advantage of European Union ...
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 ...
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?
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 ...
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 ...
3
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7answers
4k views
3
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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?
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 ...
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?
3
votes
5answers
1k views
What happens if the startup that funded by VC failed a couple of years later?
We've heard the good stories of startup that succeed after receiving funds but what happens if a startup that got funded by a VC but turns out being failure a couple of years later?
Do they get sued ...
3
votes
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 ...
3
votes
5answers
416 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 ...
