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From their FAQ (http://oxygenaccelerator.com/accelerator/faqs/ http://oxygenaccelerator.com/accelerator/faqs/): When do I have to pay the pre-seed funding back

by ry0ohki 15y ago

From their FAQ (http://oxygenaccelerator.com/accelerator/faqs/ http://oxygenaccelerator.com/accelerator/faqs/): When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis.

ovi256 15y ago
That's a FAQ, not a legal contract. Is the contract for a "hard" loan ? As Chekov said, don't put a gun on the table in act one if you don't intend it to shoot in act three.
deleted 15y ago
[deleted]
vladd 15y ago
It's like saying: give me your house and don't worry, despite the property transfer, I'll allow you to continue to stay there for free; evictions will be done on a case-by-case basis.
- phlux 15y ago
  Not really, Orrick has a startup legal package where they give you a bunch of legal guidance, advice and documents as well as get you incorporated etc. Typically, its $10,000 or more in legal help. They dont require you to pay them unless you raise at least $500K in funding -- if you crash and burn before hand and your startup falls apart - they do not ask for any payment. This happened with me in the past - and I would further recommend their services to anyone.
amirhhz 15y ago
I read the FAQ and the phrase that immediately popped up in my head was "loan sharks": - It wasn't at all clear from the website that the money would be a loan - I only got confirmation of this after several clicks to get to the FAQ. - "Case-by-case" basis? Does that mean if they think someone is going to tank they'll ask for their money back? or perhaps they'll want it back before the next cycle? - As another commenter has said, the phrase "don't worry" from money lenders makes me feel queasy. I realise the above points are very touchy-feely but compared to what else is out there, I wouldn't be willing to even consider these guys.
mhd 15y ago
This sounds a bit suspicious to me, i.e. I couldn't help but reading this in a fake Brooklyn/Jersey accent wise guy accent. How are such loans handled in the UK regarding liability? I mean, if you have a limited company, does one of the founders have to vouch for it with his personal possessions (as it's often handled here in Germany, for obvious reasons)? Yes, if you're doing good, they won't be hasty in getting the money back, but they just might kick you on your way down, possibly thus ruining your last shot of getting back up again.
- hessenwolf 15y ago
  Reason number seven million we are not registered in Germany. Seriously, though, how difficult is it to get a limited liability going in Germany? Moving there next month.
  - mhd 15y ago
    Pretty easy nowadays. The traditional way is the GmbH, which required you to have a capital of 25k Euros. Now as we're in the EU, you could register your company everywhere and lots of countries provided you with easier access to limited liability. As an answer to this, there's a beginner's version, the "UG", where the lower limit of starting capital is 1 Euro and unless you have more than three founders, there are form letters that make the legalities very easy.
    - hessenwolf 15y ago
      Good - sounds more competitive. It cost us 100€ with min of 1€ capital in the Republic + 10€ legal swearing fee. I filled in the form myself.
- forkqueue 15y ago
  In the UK the liability of directors is limited to the nominal value originally invested (usually £100).
  - mhd 15y ago
arturadib 15y ago
This is asking for trouble -- it's really ambiguous, and can easily lead to troubled waters in the near future. Anyone who's lost money in their startup investment knows what I'm talking about. ("Oh yeah, I know it's risky, don't worry" ... "Wait, did you try hard enough? What are going to do, jump ship NOW??") Their idea of an "evergreen" fund is cute, but it's ultimately flawed. Most startups fail.

by ry0ohki 15y ago

ovi256 15y ago

That's a FAQ, not a legal contract. Is the contract for a "hard" loan ? As Chekov said, don't put a gun on the table in act one if you don't intend it to shoot in act three.

deleted 15y ago

[deleted]

vladd 15y ago

It's like saying: give me your house and don't worry, despite the property transfer, I'll allow you to continue to stay there for free; evictions will be done on a case-by-case basis.

phlux 15y ago
Not really, Orrick has a startup legal package where they give you a bunch of legal guidance, advice and documents as well as get you incorporated etc. Typically, its $10,000 or more in legal help. They dont require you to pay them unless you raise at least $500K in funding -- if you crash and burn before hand and your startup falls apart - they do not ask for any payment. This happened with me in the past - and I would further recommend their services to anyone.

amirhhz 15y ago

I read the FAQ and the phrase that immediately popped up in my head was "loan sharks": - It wasn't at all clear from the website that the money would be a loan - I only got confirmation of this after several clicks to get to the FAQ. - "Case-by-case" basis? Does that mean if they think someone is going to tank they'll ask for their money back? or perhaps they'll want it back before the next cycle? - As another commenter has said, the phrase "don't worry" from money lenders makes me feel queasy. I realise the above points are very touchy-feely but compared to what else is out there, I wouldn't be willing to even consider these guys.

mhd 15y ago

This sounds a bit suspicious to me, i.e. I couldn't help but reading this in a fake Brooklyn/Jersey accent wise guy accent. How are such loans handled in the UK regarding liability? I mean, if you have a limited company, does one of the founders have to vouch for it with his personal possessions (as it's often handled here in Germany, for obvious reasons)? Yes, if you're doing good, they won't be hasty in getting the money back, but they just might kick you on your way down, possibly thus ruining your last shot of getting back up again.

hessenwolf 15y ago
Reason number seven million we are not registered in Germany. Seriously, though, how difficult is it to get a limited liability going in Germany? Moving there next month.
- mhd 15y ago
  Pretty easy nowadays. The traditional way is the GmbH, which required you to have a capital of 25k Euros. Now as we're in the EU, you could register your company everywhere and lots of countries provided you with easier access to limited liability. As an answer to this, there's a beginner's version, the "UG", where the lower limit of starting capital is 1 Euro and unless you have more than three founders, there are form letters that make the legalities very easy.
  - hessenwolf 15y ago
    Good - sounds more competitive. It cost us 100€ with min of 1€ capital in the Republic + 10€ legal swearing fee. I filled in the form myself.
forkqueue 15y ago
In the UK the liability of directors is limited to the nominal value originally invested (usually £100).
- mhd 15y ago

arturadib 15y ago

This is asking for trouble -- it's really ambiguous, and can easily lead to troubled waters in the near future. Anyone who's lost money in their startup investment knows what I'm talking about. ("Oh yeah, I know it's risky, don't worry" ... "Wait, did you try hard enough? What are going to do, jump ship NOW??") Their idea of an "evergreen" fund is cute, but it's ultimately flawed. Most startups fail.