Investment Questions


2 Votes
4 Answers
2.69K Views
How can I raise venture capital for a free and ad-free venture?

I am planning to start an online company, which would be a social tool, much like instagram and kik messenger, but I fail to see how these companies promise to return the investor's money. History...

asked Jul 1 '13 at 13:23
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Jani Kovacs
75 points

1 Votes
0 Answers
2.91K Views
Better to open a company in my own country or in USA?

Recently I have been thinking about opening a new company, specifically, a pizzeria. I'm from Brazil and here I already have a restaurant on São Paulo - SP, state of Brazil. Initially my objective...

asked Jun 3 '13 at 06:45
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Carlos Xavier
6 points

2 Votes
3 Answers
2.26K Views
Term sheet condition states we have to use the investor's law firm

Our company has just received a term sheet for a convertible debt investment. One of the clauses states that we have to pay the fees for drafting the agreements (which I understand is normal), but...

asked Apr 25 '13 at 07:20
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Phil
114 points

0 Votes
1 Answers
3.61K Views
Partner Asking For Investment Back

I recently just started an IT business. I built the product and got the product out there and brought in clients already. I asked a friend to partner with me to build the company. I gave him 30%...

asked May 2 '13 at 04:11
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Rasheeda
65 points

1 Votes
4 Answers
4.71K Views
Non-dilutable options

I have an entity I've been working on for roughly 4 years, the last being a real push to get it out the door. A student recently joined me and got us into a student business plan competition and we...

asked May 2 '13 at 22:47
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User26081
6 points

1 Votes
1 Answers
2.03K Views
LLC C-corp in US, how to report my own investment

I'm a single member LLC with C-corp taxes in the US, and I just started my entity in January. I'm trying to figure out how/if I report my own capital injections for expenses as regards my taxes. I...

asked Apr 12 '13 at 16:29
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User25852
8 points

1 Votes
1 Answers
2.38K Views
Angel or VC wants to invest, what are main arguments to negotiate shares vs investment?

what are main arguments to negotiate shares vs investment? I want to be prepared when the time comes and I don't want to figure out in the moment about the negotiation about shares split and how...

asked Mar 30 '13 at 04:00
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South
176 points

2 Votes
1 Answers
11.1K Views
Starting a hotel

I would like to start a hotel over the next few years. I know I will need a lot of capital to do so. I am working on getting the capital right now but I would like to know what a realistic amount...

asked Mar 31 '13 at 06:06
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Makai
11 points

2 Votes
2 Answers
2.9K Views
What is a lead investor?

On TechCrunch, I often see articles saying Company FooBar raised $10M in a Series A round, lead by Ventures Inc. In this context, who are "Ventures Inc"? What does it mean that they lead the...

asked Mar 21 '13 at 10:56
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Marty Pitt
171 points

0 Votes
1 Answers
2.21K Views
How much equity should these founders have?

Me and my 3 partners are in the early stages of a gaming start up company. We are now looking to split the initial equity in the company because we are not all on equal terms. Person#1 is an...

asked Feb 13 '13 at 13:30
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David Menard
101 points

2 Votes
1 Answers
3.23K Views
Share ownership in software spinoff

I have been employed at a research consulting company for several years. During the course of running research projects, I have developed software that I use internally to run some of my projects....

asked Feb 16 '13 at 06:47
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Randigoo
61 points

1 Votes
2 Answers
2.86K Views
Finder's Fees and SEC regulations

I've been advised on multiple occasions that agreeing to a finder's fee as a percentage of capital raised is illegal in the United States, unless the "finder" is a licensed broker-dealer. Despite...

asked Jan 30 '13 at 02:33
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Channel72
106 points

1 Votes
5 Answers
2.9K Views
When and how do I approach an investor?

I've been working on my startup for about 3 months now. Currently we have two active team members: a backend developer and a frontend developer (myself). Now we're looking to get investments so...

asked Jan 27 '13 at 03:41
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Michelle
168 points

3 Votes
3 Answers
4.22K Views
How to build personal credibility

Me and one of my fellow liked an idea. He said if I need investment for that start up, I will be happy to make. But that was more like a coffee table discussion which lasted for an hour. I think I...

asked Nov 13 '12 at 06:50
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Sourabh
288 points

1 Votes
1 Answers
2.08K Views
Equal partner is making demands that go back on our initial agreement in writing

I'll try to outline this quickly. Two equal, 50/50, partners - one is building/creating the product, running all operations, etc…the other is footing the bills and will be doing the sales. At the...

asked Nov 15 '12 at 12:14
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Calais
51 points

1 Votes
1 Answers
2.02K Views
Is it unattractive to investors if I have a 51% Anti-Dilution Provision?

Will investors be turned off if i own 51% of the company and have an Anti-Dilution clause that keeps me at 51%? I expect I will go through several rounds of 3rd party investing in my start-up.

asked Oct 29 '12 at 06:02
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Dragonman
120 points

5 Votes
4 Answers
2.72K Views
What is a good range for the legal fees on first round of investing?

We recently closed a first round of investing for 3 million and paid in excess of 150k for our legal fees. We used a reputable firm and were lead to believe that the costs would be around the 50k...

asked Oct 15 '12 at 22:37
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First Time Enterpreuner
26 points

3 Votes
2 Answers
2.66K Views
What does anti-dilution protection mean in a term-sheet?

My question is in the context of a Term-sheet. I want to know what does anti-dilution preferences mean?

asked Oct 18 '12 at 05:36
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Lisa Howard
116 points

2 Votes
3 Answers
2.62K Views
Unilateral equity investment by a founder

I am one of three founders (all part time) of a software start up which is still in early stages. Considerable effort has been logged even though no formal arrangements have been made. We have...

asked Aug 20 '12 at 06:49
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Mr. Anderson
13 points

1 Votes
2 Answers
3.22K Views
Can I give investors a cash return on their investments, instead of company equity?

I want to start a real estate renovation, redesign and buy-to-let company. I need 200k start up investment. I'm wondering whether or not I can simply offer each investor a 100% return on their...

asked Jul 17 '12 at 15:25
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John
6 points