The Startup's Primer for Funding
By David Shen (50 points), April 14, 2007 — 2 CommentsA basic guide on funding and all the options on terms and the ramifications for startup, angel investors, venture investors, etc. both present and future.
Some discussion on terms would be great here.
About David Shen
David Shen is the President of David Shen Ventures, LLC, and advises entrepreneurs of early stage Internet startups in the areas of user experience, product strategy and development, and online advertising.
His experience spans over 14 years in product design and development from Apple, frogdesign, and Yahoo!.
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(4 points)
April 14, 08:04 pm
I think you should also include what the differences are between the various investors are. Also, what would be of interest to me is how to go about attracting investors and what to offer them when you literally have no profit coming in yet from the venture.
Using myself as an example, I need to drum up some investors to help fund my Web Design company to cover costs for things like Business cards, new equipment and software, legal filing [LLC], etc.
Since I work for and by myself and literally live from project to project, what can I offer to potential investors as compensation for their investment dollars? Do I offer a piece of the “company” even though I’m not “legal” yet? Do I offer a percentage on the money that I bring in per project (basically a dividend)? Etc., etc…......
I think readers would find this type of information helpful. I know I would….
(6 points)
August 19, 11:08 am
I think this is something I’d like to see developed as an article ASAP since we’re ready to make the transition from being entirely bootstrapped to kicking things up a notch via investors. We’d like to avoid obvious rookie mistakes, so let’s tap into the wisdom here and make something happen!