Are Investors needed in internet startup?


The business founder on my team thinks we need 45-60% of investors since he doesn't have a full time job (and thus no income coming in) since he is a fresh graduate.

Is this a realistic reasoning for needing 45-60% of a startup to investors?

Co-Founder Decision

asked Apr 25 '11 at 23:57
229 points

2 Answers



I assume you must be earning decent enough. So instead buying an expensive car or investing in home, invest part of salary to find someone who can build it for you while working from home. It is very difficult to find people especially in current job market but it is not impossible.
Rent a server : $60 per month
Website design : $300 - $500
cost of programmer : $6 - $15
Blog : Free
Experience you get when trying to launch from own money : Priceless

You would not like to build a huge application but would like to launch with a beta version. with bare minimum features
answered Jul 17 '11 at 12:15
11 points


No! Investors are rarely willing to invest in just an idea. You need to get making something, and preferably something that customers are willing to pay for. That's typically the best way to know if you are worth investing in.

The best thing about the lean and mean boot-strap method is that when (or if) you are ready to bring in those outside investors, you will get more money for giving less ownership away. Believe me, that's a big deal for most start-ups.

answered Jul 17 '11 at 15:16
Dave Feyereisen
963 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Co-Founder Decision