What amount of equity do we have to give up for raising money for a startup?
346081
VC's will typical ask for at least 50-80% of a company. They are trying to gain as much control as they can.\n\nIf you're sole goal is to preserve ownership %, then the best route is to try and raise cash via friends and family at first.\n\nOnce that is exhausted try for angel capital but really limit the amount of money to what you absolutely need to purchase.\n\nAfter both of those have been exhausted approach the VC's for more significant investments, but hopefully you'll be farther along in the product development and the risk is lower to the VC because you have more tangible product, and therefore you have more leverage than you would have sans product.\n\nThere is no formula that can be applied here, it's really more about managing risk and having leverage when negotiating. Not to mention the strength of the idea and the timing and motivation for VC's to adopt the risk. If this is a hot idea in and up and coming area and you have a solid team behind you then it's easy, but if you're entering a market that is already well defined and is not attractive to the VC then it's harder.
4026
It strongly depends upon the stage you're on. Look into the Paul Graham's article "How to fund a startup" [1] it might be helpful. If you're just wondering whether you should start one, check his another essay "How to start a startup" [2].
539997
You may want to go and pitch your ideas where investors gather. Here are some places where angel investors come and those looking for funding can come and pitch their business plans. Be sure to have a strong business plan and describe what makes your business idea stand apart:\n\nAngel Capital Association (has a lot of links to angel investor organizations as well as information about angel investors) http://www.angelcapitalassociation.org\nAngel's Forum http://www.angelsforum.com \nBand of Angels http://www.bandangels.com \nCommon Angels http://www.commonangels.com \nKeiretsu Forum http://www.k4forum.com \nLaunchpad Venture Group http://www.launchpadventuregroup.com\nNew World Angels http://www.newworldangels.com \nNew York Angels http://www.newyorkangels.com \nPrairie Angels http://www.prairieangels.org (charges $125 to submit idea)\nRobin Hood Ventures http://www.robinhoodventures.com (charges $250)
405632
I'm afraid that your question is apparently based on several separate misunderstandings of the way the stock market works, so that it is not possible for your question to be answered. If you are asking this for a specific reason (for example, if you are trying to figure out a way to fund a startup company) then you really should consult with an attorney who specializes in corporate law. If you are asking just out of academic interest, let me point out a few of the basic problems:\n\n1) A company with 20,000 investors cannot, under US securities law, have an IPO. An IPO is an initial public offering, but if a company has over 300 investors, it is required to file publicly, so it would already BE public, and thus could not have an INITIAL public offering in the first place.\n\n2) At an IPO, the company initially begins selling shares (not "stocks") at a particular price, after which the market bids the price up and/or down. Therefore, a company is not legally allowed to offer any particular class of people (such as investors) a discount to the market price.\n\n3) The number of shares being bought or sold is completely irrelevant without looking at the larger picture. One share of Warren Buffett's Berkshire Hathaway is currently trading at about $87,000 but one share of many 'penny stocks' trade at $0.01.  Therefore the value of 2,000,000 shares (not "stocks") depends on a large number of factors, such as whether there a total of 2,000,00 or 200,000,000 shares issued.\n\nAs you can see, this is a big, complicated question, and you really, really should speak with an attorney if you are thinking about DOING anything along these lines.\n\nA good way to get a quick introduction to how the stock market works is to play the Stock Market Game, which is at the URL below (and it's free).
1120760
The best "FREE" start up money are from two sources:\n\n- you own savings or bank account\n- your parent's or relative's bank account.\n\nOther than these two options, you'll have to shell out funds for interests for loans or give a part of your business to the investor.\n\nFor information on how to raise capital for your business, I suggest you read the following articles:\n\nHow to Raise Money to Start a Business http://www.powerhomebiz.com/vol8/HowtoRaise.htm\nFast and Fun Ways to Raise Money To Start Your Home Business http://www.powerhomebiz.com/042006/financing.htm\nFind Yourself an "Angel"  http://www.powerhomebiz.com/vol13/angel.htm\nSmall Business Financing Alternative: Future Credit Card Sales  http://www.powerhomebiz.com/102005/financing.htm\n\nYou may also want to read the following books:\n\n- Financing Your Small Business \n- Small Business Financing: How and Where To Get It \n- Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing \n- The SBA Loan Book \n- Angel Capital : How to Raise Early-Stage Private Equity Financing \n- Financing Your Small Business (Barron's Business Library Series)
412703
yes. u need to have surity. also have a business plan...let it be realistic.i mean both in terms of time and resources. show the bank why is it worth investuing in your proposed business...when is that businees going to reach BEP and how r u going to do it...
1051756
Well - If this is due to venture capital - get your cv ready..\n\nVenture capital people put money into a company - but they want money back - if its not enough - they will sell everything to get money - stock, machines, etc - leaving the company "Nothing" - but you might be able to get redundancy...
1009249
You may want to go and pitch your ideas where investors gather. I am, however, unsure if they will invest on someone from outside the United States \n\nHere are some places where angel investors come and those looking for funding can come and pitch their business plans. Be sure to have a strong business plan and describe what makes your business idea stand apart:\n\nAngel Capital Association http://www.angelcapitalassociation.org\nAngel's Forum http://www.angelsforum.com \nBand of Angels http://www.bandangels.com \nCommon Angels http://www.commonangels.com \nKeiretsu Forum http://www.k4forum.com \nLaunchpad Venture Group http://www.launchpadventuregroup.com\nNew World Angels http://www.newworldangels.com \nNew York Angels http://www.newyorkangels.com \nPrairie Angels http://www.prairieangels.org (charges $125 to submit idea)\nRobin Hood Ventures http://www.robinhoodventures.com (charges $250)
869628
Check with your local rental stores.  They may have something suitable available.  Explain your fund raising event, and offer them advertising over the weekend.  You may get a reduced price for the rental, maybe even a freebie!
1097936
Typically , any bank willing to lend you money wants you to have at least a 25% stake in the venture. Your business plan should work as long as your  conservative estimates will pay all bills and the loan. do not include your wages!  partnerships are another idea. if you own a home, leverage that. You may be able to swing a SBA loan, w/ your good credit and exp. good luck.
529537
Just send it to me so you don't have to ask anyone else. Or you could put it into a high interest-earning CD or buy some stock or invest in a business idea that you feel will be a good venture.
257751
It is very, very unlikely that any venture capitalist would be interested in funding your new business, since they generally invest millions of dollars in existing businesses run by experienced managers that are likely to grow very rapidly. You may find it easier to look for "angel investors", who are wealthy individuals who invest smaller amounts in early stage companies.\n\nFor whatever it's worth, the link below is to the Hong Kong Venture Capital Association. Good luck!
461762
I would try to find a local investor. I've started 3 companies and you do not want capital venture firms giving you money. Find a local businessman or company to invest. 200-500k is a very small investment. Just make sure you have an attorney look over the documents before signing anything if you find an investor. If I didn't have a law degree, I wouldn't have noticed many of the stipulations. You can get screwed pretty easily and end up only owning 30-40% of the company you worked so hard to start.
729769
Sell Equity  Shares76%, to any one\nor general public, through IPO route\nor Bulk Deal (Balco- deal, Govt. Hotels)\nand raise money.\n\n76% share transfer, gives the buyer,\nabsolute control of the company,\nto pass any Special Resolution for \nthe new management.
49938
Try a program like Business Plan Pro. It'll help you sell your idea to other people -- including financial backers.
40946
There has to be a 'proper' mix of debt to equity or you won't be able to raise either.  People go to the equity markets in large degree to allow the owners to eventually sell some of their holdings to the public and make some money.
1007897
Approximately $100,000 to $500,000. Good luck in your new business!