Startup Financing

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

What is a startup?
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!

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)‏

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

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/

Startup Financing

by Vlad Namașco on May 17, 2008

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Startup Financing — Presentation Transcript