Funding Questions

Everything you need to know to fund and raise capital for your startup or small business. Advice from entrepreneurs and investors.

1 Votes
3 Answers
5.46K Views
What happens to the angel's / A round investor's stake on subsequent rounds, in the Valley?

As far as I understand, when the next round happens, the startup emits new shares that are sold to new investors under newly negotiated valuation. Does this lead to the previous investor's shares...

asked Jan 7 '12 at 01:28
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Fedd
8 points

1 Votes
1 Answers
1.92K Views
Should you try not to give a concrete number to a potential investor?

When raising funds for a start-up with a working prototype/alpha product, should you refrain from asking for a specific amount? Or should you provide a preferred amount, and a backup plan for a...

asked Dec 21 '11 at 16:38
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Nick
108 points

2 Votes
2 Answers
4K Views
How did Twitter/Quora persuade investors as they didnt/dont have a business model?

I wonder, how did Quora persuaded their investors as they don't make revenue and even they don't have any revenue model as far as I know. The question is same again for twitter ( I know they sell...

asked Dec 27 '11 at 15:54
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To Rr0t
69 points

1 Votes
2 Answers
2.36K Views
How to convert a pet project into a startup company / product?

I have been in software industry since Aug-2005. In beginning of 2009 I got a nasty memory leak related defect to solve from my employer. To help myself with such kind of errors in future, I...

asked Dec 2 '11 at 23:29
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Iammilind
182 points

2 Votes
3 Answers
1.89K 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,...

asked Dec 6 '11 at 22:20
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Hss
157 points

0 Votes
1 Answers
1.23K Views
Best single resource for understanding Business Analysis

I would like to get up to speed on Business Analysis, and just downloaded, "A Guide to Business Analysis Body of Knowledge (BABOK Guide)" and I'm wondering if this is the best single source for the...

asked Dec 8 '11 at 12:13
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Blunders .
899 points

3 Votes
5 Answers
2.49K Views
What is the best way to adjust options?

Me and my partner are about to start a new startup. I'm much more financially prepared than he is so we've agreed on the following structure. I would fund the company with half a million for the...

asked Nov 30 '11 at 10:49
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Erotsppa
139 points

2 Votes
3 Answers
1.72K Views
Why people seek investments if that means surrendering the control?

I've been reading people talking about giving away 51% of the company in exchange for money and considering it normal. I perhaps miss something but what is the point of creating a startup company...

asked Nov 18 '11 at 06:24
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Fobo
116 points

0 Votes
1 Answers
1.78K Views
Two ways to finance the $20,000 of the remaining liabilities

A business has $80,000 worth of liabilities that must be paid within the next 3 months. The liquid (can be turned into cash quickly) assets total only $60,000, the sales and collections from...

asked Nov 18 '11 at 10:12
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User14488
6 points

3 Votes
4 Answers
9.77K Views
How to take a draw in a multi-member LLC?

My business partner and I are forming an LLC. As I understand, members of an LLC are not employees and therefore are not on payroll. Instead they pay themselves by taking a draw from the LLC...

asked Nov 20 '11 at 03:41
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Sheehan Alam
194 points

2 Votes
1 Answers
1.85K Views
Will my company be worth more if...?

I have got an idea which is new in concept and is based on the cellular market. I am a programmer, an animator and I can do graphics and presentations. I am definitely NOT a business man, and for...

asked Oct 28 '11 at 07:10
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Ted
118 points

2 Votes
2 Answers
1.7K Views
Co-Founder's Credit

So I have a start up I am working on and given that I am a technical person I have been out looking for a business co-founder. I approached a former co-worker of mine with business experience and...

asked Oct 22 '11 at 10:40
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David Mokon Bond
234 points

5 Votes
2 Answers
5.98K Views
What is a good format for a one page business plan executive summary?

We are applying for angel investment for our startup and we're working on putting together our one page executive summary. What is the typical flow/format of an executive summary?

asked Oct 6 '11 at 07:05
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Gagan
150 points

1 Votes
2 Answers
2.92K Views
How to get products on the market quickly and cheap?

I have designed several products that involve electronics. I do all the design, electronics, and building myself except for a few things. There is a market for these products although competition...

asked Oct 8 '11 at 17:03
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Abstract Dissonance
106 points

2 Votes
3 Answers
2.67K Views
Where to start?

So this is my situation: I've got an idea and I don't have much programming skills - I'm 16 and about to start uni for the first time in a couple of months and I'm in for Software Engineering....

asked Oct 14 '11 at 17:18
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Tushar747
11 points

1 Votes
2 Answers
2.6K Views
lifecycle of a startup funding and complete buyout?

I'm staring well a start-up :) Currently we are using internal funds, and by estimates it will last for a good while, but if our growth(users servers etc.) exceed our sales, sooner or later we will...

asked Oct 1 '11 at 03:53
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Ekim
141 points

1 Votes
3 Answers
2.04K Views
Strategy to raise money for smaller market size

We have a niche business for a particular industry but with very good domain expertise and traction. We have a few hundred enterprise customers and over 10 paying enterprise customers after just a...

asked Oct 2 '11 at 00:11
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Kleine2
16 points

2 Votes
1 Answers
2.12K Views
Assessing the value of startup company for investment

We are a start up company set up 14 months ago. We were building few products which we could not finish yet. we plan to finish it in another 6 months. Since our initial budget were very low. We had...

asked Oct 2 '11 at 10:57
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Fayaz
35 points

1 Votes
2 Answers
3.07K Views
What advantages do tech startups with tax exempt 501(c)(3) status enjoy beyond tax exemption, if any?

This past March I co-founded a (for-profit) NV corporation, which created a Facebook App in the C2C social gifting space. This software, however, can be used in multiple industries, and I wanted to...

asked Oct 5 '11 at 07:21
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Robert J Valli
6 points

2 Votes
3 Answers
2.78K Views
Pair of engineers with code, should we walk away from founder? How much should we ask for ($$)?

TL;DR: Worked a year+ on code we still own, founder refuses to raise capital (wants to bootstrap) and is now low-balling us, we're willing to walk away--what would you do? Long version (detailed...

asked Oct 5 '11 at 19:35
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How To Use Our Leverage
11 points