Goodday everyone,

I'm sorry I have to do this anonymously, it is for 'safety' measures. Presently, I'm a mid-level management staff in a leading Newspaper outfit who wants to break out on his own.

I have a business idea I've been nursing for like two years now. I want it kicked off this year, but I can't do it alone because of start-up capital. Though I work and try as much as possible to save towards kicking it off, I've not been able to raise enough capital to get it started, and I don't want to borrow to start the business too.

Therefore, I need an investor that can provide an office space [not too big] that can seat at least 5 people, and invest a minimum of N500, 000 for take off.

Profit or loss will be shared on a 60:40 basis [Idea originator : Investor]. Investor won't have to do anything than be a key member of the Board of Directors of the company when registered. He/She, could be in Nigeria or abroad, no problem, as I will handle the business end to the best standard.

Serious minded investor should send me a mail at panacea.executive@yahoo.com stating intent, short introduction of self, religion and present occupation.

I'll surely get back to you.

Thanks for your anticipated co-operation

Panacea 1

Hi there!
Your request seems to be for an angel investor to front all the initial capital and an "incubator" set up.

In reality, angel investors, where keen on a business idea, require a minimum equity stake of 70%. You may be fortunate to find someone who will do 60%, but that is rare. Also, angel investors DO NOT operate on a P&L basis. They invest based on your business plan and stated requirements, taking an equity stake, so in reality share only in the profits (not losses). For example, assuming in month 3 of operations, you see a loss of N300,000 and your entire operational budget is wiped out. The angel investor WILL NOT usually infuse additional cash to bail you out of a hole (thereby sharing in your loss). Your business plan should have sufficient allowance for operational expenses and market risk.

So really, your offer should read "Equity position, 30:70 (idea originator: Investor)". Now, you may have to reset your expectations and recalculate your position based on this worst case scenario. Then determine if it is still worthwhile at 30% equity. Finally make certain you have a tight business plan that takes at least 6 months of operating expenses (salaries, marketing etc) into consideration. In an environment such as Nigeria, I would strongly suggest 1 year of operational expenses for a number of reasons, some quite obvious.

Goodluck!

zina@LPF:

Hi there!
Your request seems to be for an angel investor to front all the initial capital and an "incubator" set up.

In reality, angel investors, where keen on a business idea, require a minimum equity stake of 70%. You may be fortunate to find someone who will do 60%, but that is rare. Also, angel investors DO NOT operate on a P&L basis.

Thank you.