elvis10ten: Please read this. paulgraham

Raising Money

To make all this happen, you're going to need money. Some startups have been self-funding-- Microsoft for example-- but most aren't. I think it's wise to take money from investors. To be self-funding, you have to start as a consulting company, and it's hard to switch from that to a product company.

Financially, a startup is like a pass/fail course. The way to get rich from a startup is to maximize the company's chances of succeeding, not to maximize the amount of stock you retain. So if you can trade stock for something that improves your odds, it's probably a smart move.

elvis10ten: Please read this. paulgraham

The first thing you'll need is a few tens of thousands of dollars to pay your expenses while you develop a prototype. This is called seed capital. Because so little money is involved, raising seed capital is comparatively easy-- at least in the sense of getting a quick yes or no.

Usually you get seed money from individual rich people called "angels." Often they're people who themselves got rich from technology. At the seed stage, investors don't expect you to have an elaborate business plan. Most know that they're supposed to decide quickly. It's not unusual to get a check within a week based on a half-page agreement.

We started Viaweb with $10,000 of seed money from our friend Julian. But he gave us a lot more than money. He's a former CEO and also a corporate lawyer, so he gave us a lot of valuable advice about business, and also did all the legal work of getting us set up as a company. Plus he introduced us to one of the two angel investors who supplied our next round of funding.

Some angels, especially those with technology backgrounds, may be satisfied with a demo and a verbal description of what you plan to do. But many will want a copy of your business plan, if only to remind themselves what they invested in.

elvis10ten: Please read this. paulgraham

Our angels asked for one, and looking back, I'm amazed how much worry it caused me. "Business plan" has that word "business" in it, so I figured it had to be something I'd have to read a book about business plans to write. Well, it doesn't. At this stage, all most investors expect is a brief description of what you plan to do and how you're going to make money from it, and the resumes of the founders. If you just sit down and write out what you've been saying to one another, that should be fine. It shouldn't take more than a couple hours, and you'll probably find that writing it all down gives you more ideas about what to do.

For the angel to have someone to make the check out to, you're going to have to have some kind of company. Merely incorporating yourselves isn't hard. The problem is, for the company to exist, you have to decide who the founders are, and h[b]ow much stock they each have[/b]. If there are two founders with the same qualifications who are both equally committed to the business, that's easy. But if you have a number of people who are expected to contribute in varying degrees, arranging the proportions of stock can be hard. And once you've done it, it tends to be set in stone.

When and if you get an infusion of real money from investors, what should you do with it? Not spend it, that's what. In nearly every startup that fails, the proximate cause is running out of money. Usually there is something deeper wrong. But even a proximate cause of death is worth trying hard to avoid.

During the Bubble many startups tried to "get big fast." Ideally this meant getting a lot of customers fast. But it was easy for the meaning to slide over into hiring a lot of people fast.

1st i started with 1 of my friend and we are still together.

2nd you said microsoft was funded by family members and close friends. But this says it was self-funded. He advised to take money from investors.

3rd you didn't copy the exact idea there. I think what was there was u need seed capital to create the prototype, then show investors something like that but all the same it still leads there. So i wasn't wrong creating this thread.

4th i wish i had that type of friend i wouldn't have gone outside. And that also settles the part where u were asking me of things and i said i didn't have

5th no one asked for a business plan here. Even if u did and i give u a basic business plan, u will end up telling me its substandard. I lie ?

6th in nigeria i don't think its that easy ?.(CAC)

7th i didn't say i want to use the investor money to hire employees or spend unwisely. I said i needed it for expansion and to implement our new idea.

All this were arranged according to how u posted it, each suit one.

elvis10ten: 2nd you said microsoft was funded by family members and close friends. But this says it was self-funded. He advised to take money from investors.

If a start up company is self-funded, that means they did not get outside fund from an angel investor. Even before an angel investor invests in a company some structures and systems ought to be in place.

elvis10ten: 7th i didn't say i want to use the investor money to hire employees or spend unwisely. I said i needed it for expansion and to implement our new idea.

It is easier said than done, that is why your pedigree in business is important. I said getting a small loan and paying before due date is one of the ways of building your credit worthiness.

manie:



If a start up company is self-funded, that means they did not get outside fund from an angel investor. Even before an angel investor invests in a company some structures and systems ought to be in place.

You don't seem to get it. What am saying is this => YOU SAID MICROSOFT WAS FUNDED BY FAMILY MEMBERS, BUT NOW YOU HAVE SEEN YOU ARE WRONG. JUST ADMIT YOU WERE WRONG THATS ALL.

manie:


It is easier said than done, that is why your pedigree in business is important. I said getting a small loan and paying before due date is one of the ways of building your credit worthiness.

WHY DRAW THIS MATTER FOR SO LONG, YOU HAVE ALREADY SAID THIS =>

manie: When I am blessed enough to throw money around.

in https://www.nairaland.com/1227635/what-make-angel-invest-internet so you are not interested in investing in a start-up. From that word u said, u feel start-up aren't worth it, but don't forget google was once a start-up. According to that essay, all u need is seed capital in order to get the prototype up and running, then you show investor to invest in it, there was "NO STRUCTURE OR ANY RELATED BUSINESS THING THERE".

Brand_new:
Why don't you just encourage him and keep a tab on his progress rather than kill his dreams.

Bros, nobody can kill your dreams but yourself.
Steve Jobs sold his VW mini-bus (Kombi bus or Vanagon as we call it here). Steve Wozniak sold his most prized possession - a HP scientific calculator. They used the money to invest in the Apple 1.

manie is just tuning the OP to reality. He needs to work hard and ensure the business is generating income, show a track record, before asking for investment. At this stage he's just looking for a handout. We're not in Silicon Valley here.

elvis10ten: WHY DRAW THIS MATTER FOR SO LONG, YOU HAVE ALREADY SAID THIS => in https://www.nairaland.com/1227635/what-make-angel-invest-internet so you are not interested in investing in a start-up. From that word u said, u feel start-up aren't worth it, but don't forget google was once a start-up. According to that essay, all u need is seed capital in order to get the prototype up and running, then you show investor to invest in it, there was "NO STRUCTURE OR ANY RELATED BUSINESS THING THERE".

I can only sow my sincere advice for free. I will not charge consultation fee.

AjanleKoko:

Bros, nobody can kill your dreams but yourself.
Steve Jobs sold his VW mini-bus (Kombi bus or Vanagon as we call it here). Steve Wozniak sold his most prized possession - a HP scientific calculator. They used the money to invest in the Apple 1.

manie is just tuning the OP to reality. He needs to work hard and ensure the business is generating income, show a track record, before asking for investment. At this stage he's just looking for a handout. We're not in Silicon Valley here.

How i wish i had what to sell to get the money i need.

elvis10ten: How i wish i had what to sell to get the money i need.

What kind of mobile phone do you use?

manie:


I can only sow my sincere advice for free. I will not charge consultation fee.

@ sir manie i will love that. If u want to send it to my email fine, but i will like it here so others who come to this thread can learn.

@ Ajanlekoko what do you have to say to these young start entrepreneurs?

AjanleKoko:

What kind of mobile phone do you use?

NOKIA 2690.

elvis10ten: How i wish i had what to sell to get the money i need.

What about getting a job, and saving enough money to start your dream venture.

manie:


What about getting a job, and saving enough money to start your dream venture.

THAT WOULD HAVE BEEN NICE IF I HAD FINISHED SECONDARY SCHOOL AND OLDER THAN 15 years.

AjanleKoko:

What kind of mobile phone do you use?

Do you subscribe to DSTV, how much do you spent charging your phone, what about the money spent on complete football, how often do you go to the club, can you do the 15minutes trek instead of spending N100.00 on Okada. If you are frugal you will get the seed capital.

And also remember to get close to your God, he will not disappoint you.

The guy advising you graduated with a 3rd class degree from UNILAG in 1997 but I thank God for what I have done with myself.

elvis10ten: THAT WOULD HAVE BEEN NICE IF I HAD FINISHED SECONDARY SCHOOL AND OLDER THAN 15 years.

How old are you? What is your highest educational qualification?

elvis10ten: @ sir manie i will love that. If u want to send it to my email fine, but i will like it here so others who come to this thread can learn.

I will give the advice on this thread, i don't give my e-mail address to strangers.

manie: @ Ajanlekoko what do you have to say to these young start entrepreneurs?

Well . . . they have my sympathy, as I am sort of in the same line of business.

I think they should forget about raising money for now. Rather, if they have technical skills such as web design, PC assembly, etc., they should look at getting paid for those skills somehow. Even if it means setting up Facebook or Google Plus pages for people who can't afford a website, for a stipend. They can invest back their money into their venture.

manie:

Do you subscribe to DSTV, how much do you spent charging your phone, what about the money spent on complete football, how often do you go to the club, can you do the 15minutes trek instead of spending N100.00 on Okada. If you are frugal you will get the seed capital.

And also remember to get close to your God, he will not disappoint you.

The guy advising graduated with a 3rd class degree from UNILAG but I thank God for what I have done with myself.

I don't subscribe to dstv. I only recharge because of Xmx Me. Currently i do not have time for football clubs because those are not my interest. I trek to school because its close.