Funding Questions

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

4 Votes
3 Answers
4.82K Views
How is ownership of equity re-distributed at each stage of growth?

I've been researching for over a year now as an aspiring entrepreneur, but I am still fuzzy on how equity gets distributed at every stage of company growth. Is a set amount of "shares" created...

asked Oct 23 '09 at 11:08
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Joe
277 points

2 Votes
8 Answers
6.94K Views
What is a reasonable equity proposal for investors?

Say I have a brilliant idea for a startup, and need to raise 250,000 $ from private investors. How do I decide on how much equity to give for this investment? Is there a ball-park?

asked Oct 12 '09 at 07:36
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Ripper234
137 points

2 Votes
1 Answers
2.82K Views
How do I find the right investor in Europe?

I am peripherally involved in a startup in Denmark. The company has been in business for close to 10 years and is still mostly a 2-person company. During this time the company has been mostly...

asked Oct 12 '09 at 08:07
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Allan Mertner
186 points

2 Votes
2 Answers
2.93K Views
When does a VC take into consideration projected revenues?

When you pitch your idea to a VC and he is expressly concerned with numbers: 1) How do you best determine projected revenues? 2) Do most VC's take into consideration projected revenues or do...

asked Oct 13 '09 at 01:32
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Isaac Hill
31 points

3 Votes
9 Answers
3.63K Views
Lifestyle company

VCs are looking for extremely large exits. This puts a lot of pressure on the founders to succeed fast or fail fast. A small, self-sustaining company can be more rewarding, because it can be molded...

asked Oct 13 '09 at 05:53
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Omer Gertel
118 points

3 Votes
3 Answers
2.93K Views
seed round parameters?

How should we decide how much we need to raise in a seed round? Our biggest expense is salary for the founders -- just enough so we can work full time on the company without living in our cars or...

asked Oct 13 '09 at 08:43
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Bstpierre
422 points

1 Votes
2 Answers
3.01K Views
Where can I find information on what ‘Web 2.0’ companies valuations are?

Does anybody know of any source where I can find out what 'real' valuations internet startups are getting? The term 'real' valuation is totally made up, but I mean what actual investors are...

asked Oct 14 '09 at 09:34
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John Mac Intyre
1,086 points

9 Votes
16 Answers
12.8K Views
Didn't finish grade 12, currently unemployed, but have a great idea for a startup: Where to start?

I think I have an awesome idea for a web startup, but I'm not sure if I have a chance because I'm not a web developer, am currently unemployed, and can't afford to hire anyone to develop my idea (I...

asked Oct 15 '09 at 06:29
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Inter Mike
46 points

4 Votes
6 Answers
4.13K Views
Should I grow my business organically?

The main funding source I see for startups is either angel investors or VCs. Should an organic growth model be considered for my startup? What are the pros/cons of organic growth?

asked Oct 10 '09 at 21:55
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Dalenkruse
599 points

6 Votes
5 Answers
6.44K 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...

asked Oct 11 '09 at 02:59
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Randfish
1,001 points

3 Votes
2 Answers
4.68K Views
Raising money from friends who are non-accredited investors?

I am wondering as to what is the best (easiest) way to raise money from interested friends who are non-accredited. I feel like I am fortunate enough to have some wealthy enough friends who would...

asked Oct 10 '09 at 10:18
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Vineet
1,080 points

3 Votes
8 Answers
5.64K Views
We've launched our bootstrapped startup and have a few thousand dollars for marketing. Any advice?

Our startup is PubliciTweet. We're like a Constant Contact for Twitter. While in public beta the service is completely free. We are most interested in acquiring more users than setting up payment...

asked Oct 10 '09 at 07:22
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Jaisen
28 points