Financing for Startup Business Serghei Zagaiciuc, entrepreneur, founding partner of http://www.trackdroid.com/ Make sure your business never dies of blood-loss!

About myself - trackdroid.com Google Android mobile phone application manager Search, install, uninstall software Receive software updates Provide software marketplace for application developers

Google Android mobile phone application manager

Search, install, uninstall software

Receive software updates

Provide software marketplace for application developers

What is a startup? Not every new business is a startup Startup businesses should be very aggressive and very scalable

Not every new business is a startup

Startup businesses should be very aggressive and very scalable

How to prepare for investment? Create a business plan, as detailed as possible! http://www.score.org/ Incorporate! Dont take too much, dont take too little Always keep looking, even if you just got some money!

Create a business plan, as detailed as possible!

http://www.score.org/

Incorporate!

Dont take too much, dont take too little

Always keep looking, even if you just got some money!

Types and Sources of Financing Seed Capital Own money Service company Angel investors Venture funds (very rare)‏ Venture Capital Venture funds Banks and financial organizations (very rare)‏

Seed Capital

Own money

Service company

Angel investors

Venture funds (very rare)‏

Venture Capital

Venture funds

Banks and financial organizations (very rare)‏

Own money + No need to give anything away + Little administrative costs - Not getting investor opinion - Investment is very risky - Usually you don't have enough money - May spoil relationship with your family

+ No need to give anything away

+ Little administrative costs

- Not getting investor opinion

- Investment is very risky

- Usually you don't have enough money

- May spoil relationship with your family

Angel Investors +They are experts, you get advice and connections + Fairly fast decision making + Low overhead - Take 5-15%% of the company - Financing from angels is limited Example: http://www.ycombinator.com/

Venture Funds + They have really big money, maybe too big for you :-)‏ + If you interest them you get all the connections you need - Usually not interesting in small companies - High administrative cost and overhead - Slow decision making - Will take significant amount of company Examples: http://www.sequoiacap.com/ http://www.mangrove-vc.com/

+ They have really big money, maybe too big for you :-)‏

+ If you interest them you get all the connections you need

- Usually not interesting in small companies

- High administrative cost and overhead

- Slow decision making

- Will take significant amount of company

Examples:

http://www.sequoiacap.com/

http://www.mangrove-vc.com/

A