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Startups and Angel Investment
I'm starting a startup with clear methods of generating revenue and although I hope it becomes successful beyond my wildest expectations, I honestly don't have any clue as to how successful it will become and how many customers I will be able to get and how long it will take to get them. I don't think any startup can know these numbers.
I'm speaking with investors about receiving some angel funding. Without an accurate projection of revenue and expenses, how do I know how much of the company to offer them?
- pg 19y agoThe market decides. They'll decide what valuation to offer you; you'll decide whether or not to take their offer.
- noelchurchill 19y agoSo I just give them my best estimates of revenues and expenses and they'll make an offer based from that? How long into the future should I project?
- pg 19y agoTheir offer probably won't be based on your estimates of revenues and expenses. For most startups those are mere guesses, and usually very hopeful ones. For a typical early stage startup, their offer will be based on things like whether you seem smart and driven, and whether the project seems like it could be really big.
- fuelfive 19y agoIf you're pre-revenue, offer them convertible debt.