Venture Capital Questions


3 Votes
3 Answers
2.82K Views
Is venture capital appropriate here?

I'm a student and an iOS developer. I am trying to pay for advertising for my apps. Is this a situation where I'd want to raise venture capital? I develop my apps solo, sometimes my own ideas,...

asked Mar 23 '11 at 13:16
Blank
Moshe
409 points

2 Votes
4 Answers
2.9K Views
Odds of Finding Sponsor/Investor for New Website

I recently launched a website for developers (blackbeltcoder.com ). It's a free site that will employ an advertising business model. I'm very pleased with the rate of growth in the just over three...

asked Mar 24 '11 at 11:56
Blank
Jonathan Wood
120 points

5 Votes
5 Answers
3.1K 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...

asked Mar 30 '11 at 04:46
Blank
Edit This
88 points

1 Votes
1 Answers
2.6K Views
Should we use "trigger event" investment milestones for additional rounds of capital?

One of our advisors recently suggested we consider using "trigger events" for our second round of capital. Along the lines of "I'll commit $50K now and if you get to 25K registered users by 6/30,...

asked Mar 31 '11 at 03:32
Blank
Warren E. Hart
2,181 points

1 Votes
2 Answers
3.59K Views
What are the differences between stocks, stock pool, shares?

Have read lots of different terms. I have no idea how they differ from one another. Things like, 20% stock pool for employees, and 1 million stocks, etc. Can someone enlighten me? Thank you.

asked Mar 16 '11 at 14:22
Blank
Victor
593 points

6 Votes
6 Answers
3.23K 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...

asked Mar 9 '11 at 19:44
Blank
Asaf R
133 points

5 Votes
4 Answers
4.41K 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...

asked Mar 12 '11 at 15:26
Blank
Victor
593 points

3 Votes
1 Answers
2.39K Views
What is the most important way in which an investor can add value to your startup?

How would you force-rank (1 being highest to 8 being lowest), in terms of value to your startup, the following 8 services provided by an investor: Warm introductions to potential customers Warm...

asked Feb 24 '11 at 21:58
Blank
Zippy
871 points

6 Votes
4 Answers
2.58K 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....

asked Feb 10 '11 at 09:40
Blank
Susan Jones
4,128 points

5 Votes
4 Answers
2.88K 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...

asked Feb 15 '11 at 05:56
Blank
Igorek
886 points

5 Votes
6 Answers
3.4K 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...

asked Jan 23 '11 at 18:57
Blank
Jason
139 points

3 Votes
4 Answers
4.06K Views
How much VC equity stake for a product that is fully built for a mid-stage start-up company?

So I have a site that will accept subscriptions the first quarter of 2011. I have been developing this product over the past year and it is almost complete. I would like to use the VC money to help...

asked Jan 4 '11 at 13:31
Blank
John
161 points

4 Votes
3 Answers
3.45K 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...

asked Jan 7 '11 at 01:36
Blank
Joel Spolsky
13,482 points

1 Votes
2 Answers
2.94K Views
Where do I find VCs?

I am making a new site, and I need some investors for it. The work is quite done, but I am unable to find people who would like to invest in the site. How and where can I find...

asked Jan 7 '11 at 07:26
Blank
Amit
113 points

5 Votes
3 Answers
2.72K Views
How to get an investor's attention at a conference?

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 are going to be...

asked Dec 3 '10 at 06:31
Blank
User5770
26 points

1 Votes
1 Answers
3.14K Views
How does option pool size at the time of incorporation impact valuation and funding

Suppose someone needs to incorprate a C-corp, for a high tech high growth business. How does option pool size at the time of incorporation impact valuation and funding. Or it only matters how...

asked Dec 13 '10 at 21:30
Blank
Jewelthief
151 points

4 Votes
5 Answers
3.04K 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?

asked Dec 15 '10 at 12:22
Blank
Usabilitest
1,698 points

0 Votes
3 Answers
2.34K Views
Where would one advertise for a lead man/woman?

We are seeking to bring in someone at a founder level that is connected in the Silicon valley investment circles. Is there anywhere in particular we could advert to see if anyone fits our group?...

asked Nov 24 '10 at 12:11
Blank
Xs Direct
275 points

0 Votes
2 Answers
2.66K Views
Would I have to patent my computer systems in order to produce them and sell them to markets?

Would I have to patent my computer systems (such as desktops and laptops) in order to produce them and sell them to markets? Similar to Dell and HP would operate.

asked Dec 1 '10 at 14:43
Blank
User5732
6 points

1 Votes
1 Answers
3.22K Views
What is the best and least expensive way to trademark and patent your business IP internationally?

I am working on a start-up company to grow to become a big company to compete against some well known, popular, and in some ways powerful companies in the respective industries and markets today. I...

asked Dec 1 '10 at 15:23
Blank
User5732
6 points