How can I raise investor funds for a startup ?

I read how startups raise huge funds from investors - where are these investors found ? I'll like to pitch one or two ideas to them.

Any platform or body or anything ?

There are ways…

A solid, profitable idea is one of them.

kiako:


How can I raise investor funds for a startup ?

I read how startups raise huge funds from investors - where are these investors found ? I'll like to pitch one or two ideas to them.

Any platform or body or anything ?

first create an MVP, second register an LLC In Nigeria, third register an LLC or C Corporation in the US, third gain tractions of revenue then apply for international acceleration for your startup

Ynix:
first create an MVP, second register an LLC In Nigeria, third register an LLC or C Corporation in the US, third gain tractions of revenue then apply for international acceleration for your startup

Not necessarily.

Remember there are pre-seed funding with which to research and build your mvp.

Ynix:
first create an MVP, second register an LLC In Nigeria, third register an LLC or C Corporation in the US, third gain tractions of revenue then apply for international acceleration for your startup

Please what does MVP mean?

OmoOgunOriginal:


Please what does MVP mean?

Minimum viable product

Plomo:
There are ways…

A solid, profitable idea is one of them.

Which ways ? Like a platform or anything cos we gone past the idea stage.....

Plomo:


Not necessarily.

Remember there are pre-seed funding with which to research and build your mvp.

Please break down the processes involved as regards my topic ....

kiako:


Please break down the processes involved as regards my topic ....

I really can’t break it down cos it’s a lot. There are a lot of requirements.

You can check out Ycombinator and see how tedious it can get.

Plomo:


I really can’t break it down cos it’s a lot. There are a lot of requirements.

You can check out Ycombinator and see how tedium it can get.

Olright

OmoOgunOriginal:


Please what does MVP mean?

minimum viable product

Plomo:


I really can’t break it down cos it’s a lot. There are a lot of requirements.

You can check out Ycombinator and see how tedious it can get.

This topic to be broken down to pieces is a full stack course ranging from 500k and above oh.
Why don't we like 3 to 10 guys team up on a project just like how Jack Ma and Jeff Bezos did for their startups in the 1990s. We float a Nigerian based coy,register a US based Corporation that has the value of $10 Million we can sell out like 10% and use it to fund our idea
If anyone is interested chat me up 08089456258

Ynix:

This topic to be broken down to pieces is a full stack course ranging from 500k and above oh.
Why don't we like 3 to 10 guys team up on a project just like how Jack Ma and Jeff Bezos did for their startups in the 1990s. We float a Nigerian based coy,register a US based Corporation that has the value of $10 Million we can sell out like 10% and use it to fund our idea
If anyone is interested chat me up 08089456258

If you ever decide to team up with people to raise funds for a project make sure you do so with people who you know well especially with regards to ethics and their temperament when handling other people's money.

It is also of utmost importance to be sure that each team member is bringing something of value (Eg special skills, knowledge or experience) to the table and will not just be a deadwood who contributes nothing but wants to just share money!

Ynix:
minimum viable product

Thank you very much

SavageResponse:


If you ever decide to team up with people to raise funds for a project make sure you do so with people who you know well especially with regards to ethics and their temperament when handling other people's money.

It is also of utmost importance to be sure that each team member is bringing something of value (Eg special skills, knowledge or experience) to the table and will not just be a deadwood who contributes nothing but wants to just share money!

You are very right on this, some people are acidic and some lack the capacity and patience to follow things through

Ynix:

This topic to be broken down to pieces is a full stack course ranging from 500k and above oh.
Why don't we like 3 to 10 guys team up on a project just like how Jack Ma and Jeff Bezos did for their startups in the 1990s. We float a Nigerian based coy, register a US based Corporation that has the value of $10 Million we can sell out like 10% and use it to fund our idea

I'd like to know, selling of shares of 10%, doesn't it translate to raising only 10% needed in the whole running of the business ? Or how does this shares thing capture its stance in capital proportion ?

Lets say a business needs 100K for a year running. And 10% share is sold, can it generate more than 10K seeing that that is 10% of the total sum ?


Secondly, why do we have to register a US corporation ? I believe to have a US presence; is it ?


Lastly : being valued at $10M, how is that valuation done as in what does it entail ? Does one just say his business is valued at $10M or what are the modalities that bring up to that figure owing to the business. ?

kiako:


I'd like to know, selling of shares of 10%, doesn't it translate to raising only 10% needed in the whole running of the business ? Or how does this shares thing capture its stance in capital proportion ?

Lets say a business needs 100K for a year running. And 10% share is sold, can it generate more than 10K seeing that that is 10% of the total sum ?


Secondly, why do we have to register a US corporation ? I believe to have a US presence; is it ?


Lastly : being valued at $10M, how is that valuation done as in what does it entail ? Does one just say his business is valued at $10M or what are the modalities that bring up to that figure owing to the business. ?

The concept of shares and selling of stake in a business is unique for Limited Liability Companies either private or public.
Just like how the CBN print out money, the money for LLCs and PLC Comes from selling voting shares or ordinary shares of the company through private or public offering.
Usually in Nigeria the average total share offer when registering is at 1 Million shares which is staked at 1Naira to 1 share so a person who owns 200,000 shares of a company owns the value of 200,000 Naira out of 1 Million naira of the company which also determines the dividends he or she gets when profits are made.
For the US part, foreigners who are not based in the US are allowed to register either and LLC or C Corporation which allows one to do business in the USA even if you are not physically present most especially for technology companies.
When registering a C Corporation you the average amount of shares awarded to owners is $10 Million of which it can be more than that.
Owners have the privilege of selling out shares for raising funds for funding the business.

The essence of fund raising through equity is not actually for just spending but for growing the value of the company through the Viable Products pushed out. So you don't look at it from the angle of spending but Investment and Returns of Investment (ROI)

Ynix:


The concept of shares and selling of stake in a business is unique for Limited Liability Companies either private or public.
Just like how the CBN print out money, the money for LLCs and PLC Comes from selling voting shares or ordinary shares of the company through private or public offering.
Usually in Nigeria the average total share offer when registering is at 1 Million shares which is staked at 1Naira to 1 share so a person who owns 200,000 shares of a company owns the value of 200,000 Naira out of 1 Million naira of the company which also determines the dividends he or she gets when profits are made.
For the US part, foreigners who are not based in the US are allowed to register either and LLC or C Corporation which allows one to do business in the USA even if you are not physically present most especially for technology companies.
When registering a C Corporation you the average amount of shares awarded to owners is $10 Million of which it can be more than that.
Owners have the privilege of selling out shares for raising funds for funding the business.

The essence of fund raising through equity is not actually for just spending but for growing the value of the company through the Viable Products pushed out. So you don't look at it from the angle of spending but Investment and Returns of Investment (ROI)

In other words, [taking the stats as written ] if 200, 000 shares are sold and what's needed for the business to get ROI is lesser (say 120K), it still means the shareholder(s) only acquired 20% stake ??

kiako:


In other words, [taking the stats as written ] if 200, 000 shares are sold and what's needed for the business to get ROI is lesser (say 120K), it still means the shareholder(s) only acquired 20% stake ??

If someone offers to buy a 10% stake of your company at $100,000, then they’re valuing your company at $1,000,000. From that, I think you can do the math for say 25% stake for $120,000,000.

There’s no general valuation of a company at initial startup. Traction, investments and revenues will determine your net worth.

On the other hand, you start talking about shares of a private company when it successfully completes its IPO. It is no longer an LLC or Limited company but you start hearing PLC. It is now traded on the stock market. This is also the time most founders officially become billionaires…that’s after a very successful IPO sha.

kiako:


In other words, [taking the stats as written ] if 200, 000 shares are sold and what's needed for the business to get ROI is lesser (say 120K), it still means the shareholder(s) only acquired 20% stake ??

Yes but usually you don't undervalue your company based on your project plan though you don't also over value it beyond normal.
Let's say you are going into the real estate market and you want to raise equity. Let's assume your target is to build 1000 duplexes of initial value of like $50,000 in 3 years, and that means that the value of the total products being is at $50,000,000 and let's assume you that the value of the properties will triple in value in 6 years that means the value of the product will be $150 Million by then.
Now let's assume that all you need to kickstart the whole project is just $15,000 per duplex you can project an additional $5000 making $20,000 and ask for people to buy into your company so they can how some shares of it.
With the money raise you build your houses sell some and make profit then share some to your shareholders will the company keep growing in value through Production, Marketing, Sales and Merchandising.
As you grow organically or in-organically the value of your company may jump up to an excited state as you keep churning in revenue growing your workforce until your company becomes a shark

Ynix:
Yes but usually you don't undervalue your company based on your project plan though you don't also over value it beyond normal.
Let's say you are going into the real estate market and you want to raise equity. Let's assume your target is to build 1000 duplexes of initial value of like $50,000 in 3 years, and that means that the value of the total products being is at $50,000,000 and let's assume you that the value of the properties will triple in value in 6 years that means the value of the product will be $150 Million by then.
Now let's assume that all you need to kickstart the whole project is just $15,000 per duplex you can project an additional $5000 making $20,000 and ask for people to buy into your company so they can how some shares of it.
With the money raise you build your houses sell some and make profit then share some to your shareholders will the company keep growing in value through Production, Marketing, Sales and Merchandising.
As you grow organically or in-organically the value of your company may jump up to an excited state as you keep churning in revenue growing your workforce until your company becomes a shark

But most times, the valuation you put on your company is not what investors end up working with. Their will be lots of back and forth negotiations. You should always assume the investors have more experience than you, know the market and economy better and do their due diligence. So you may not get the funding you’re looking for at one go. That’s why you now start hearing of Series A, B, C.


You didn’t factor in the fact that a business may never even successfully raise funds via any avenue.

He may have sweet numbers, a juicy plan etc but the business does not just fit the venture model.

A private company may also issue stocks or trade shares and have share holders but their shares don’t trade publicly on exchanges. These shares are less liquid (does not favor the impatient investor) and their valuations are difficult, very difficult to determine.

Plomo:


But most times, the valuation you put on your company is not what investors end up working with. Their will be lots of back and forth negotiations. You should always assume the investors have more experience than you, know the market and economy better and do their due diligence. So you may not get the funding you’re looking for at one go. That’s why you now start hearing of Series A, B, C.


You didn’t factor in the fact that a business may never even successfully raise funds via any avenue.

He may have sweet numbers, a juicy plan etc but the business does not just fit the venture model.

A private company may also issue stocks or trade shares and have share holders but their shares don’t trade publicly on exchanges. These shares are less liquid (does not favor the impatient investor) and their valuations are difficult, very difficult to determine.

True, that is why we have pre-seed and seed funding coming first before the route of the different series of funding.
That is why the idea of crowdfunding and crowdvesting is popular now as alternative before any Venture Capitalist buys into the business.
Nevertheless instead of overthinking things the best option is to start and jump into the ocean.
The sad part of it is that most times we all function as angel investors and venture capitalist only that we want quick gains instead of looking at joining a visionary project that will take up to 7 years to break even experiencing exponential growth.
Putting our focus on long term business project in perspective will not only help us as individuals but also as a people and nation.
For example I have a vision of planting 100 Million economic trees in 10 years and I have done my feasibility study, needs assessment and impacts analysis.
I realized that instead of going extreme technically it is best to just start. I also discovered that the easiest way to do crowdfunding and crowdvesting is through Blockchain Technology so I created a cryptocurrency for the entire project which I called Cowries

Plomo:


If someone offers to buy a 10% stake of your company at $100,000, then they’re valuing your company at $1,000,000. From that, I think you can do the math for say 25% stake for $120,000,000.

There’s no general valuation of a company at initial startup. Traction, investments and revenues will determine your net worth.

On the other hand, you start talking about shares of a private company when it successfully completes its IPO. It is no longer an LLC or Limited company but you start hearing PLC. It is now traded on the stock market. This is also the time most founders officially become billionaires…that’s after a very successful IPO sha.

By what modality is IPO given out ? Isn't it "shares" (as in stakes ) ?

Ynix:
Now let's assume that all you need to kickstart the whole project is just $15,000 per duplex you can project an additional $5000 making $20,000 and ask for people to buy into your company so they can how some shares of it.

Thanks. So what would have been needed is only $20,000,000 (even though its valued at $50M ) ??

Secondly, would it be when the company has had revenue from $50M (being the initial projected value) that the shareholders start to get their ROI ?

Ynix:


For example I have a vision of planting 100 Million economic trees in 10 years and I have done my feasibility study, needs assessment and impacts analysis.
I realized that instead of going extreme technically it is best to just start. I also discovered that the easiest way to do crowdfunding and crowdvesting is through Blockchain Technology so I created a cryptocurrency for the entire project which I called Cowries

Big ups. And creating a crypto I think that's on a whole new level.

Keep it up.

With time we may get to know better.

kiako:


By what modality is IPO given out ? Isn't it "shares" (as in stakes ) ?

There are SEC regulations for executing IPOs.

Plomo:


There are SEC regulations for executing IPOs.

Ok

Plomo:


There are SEC regulations for executing IPOs.

I'm curious to know when is right to say that one has started having profits such that it could be counted as a year to pay shareholders their stake in the profit ?

For EG if a firm raises 200000 for a comapnay valued at 1M., and makes 200000 as profit even after paying staff and all that, does it imply one now has to pay the shareholders the 10% of the profit for that year which is their stake proportion or wait until profit (and all value of the company in terms of machinery etc ) reaches that 1M USD before he can start counting from there to know what is the profit ?


Thanks

kiako:


How can I raise investor funds for a startup ?

I read how startups raise huge funds from investors - where are these investors found ? I'll like to pitch one or two ideas to them.

Any platform or body or anything ?

Start from TEF and co.

As regards funding, you have to make some reasonable profit from your business.

They hardly fund ideas, they fund biz.

LikeAking:


Start from TEF and co.

As regards funding, you have to make some reasonable profit from your business.

They hardly fund ideas, they fund biz.

You mean TEF ?

Don't be doubting thomas try and register with this link and make money
https://online-ng.net/index/user/register/27280.html