2 ms·
I am not interested in finding an investor for a business. However, for the benefit of others, I think I'll just ask you a few questions that would be good to k
by trcollinson 12y ago
I am not interested in finding an investor for a business. However, for the benefit of others, I think I'll just ask you a few questions that would be good to know if I were looking for an investment.
1. How much are you looking to invest? I hope you won't answer that "This depends on the business, the model, the founders, how much market share there is, and what percentage of the business I will receive." Those are all important details. But what range of cash on hand do you have. $5000 - $10,000 is far different from $500,000 to $1,000,000.
2. How many other startups are you currently invested in? What is their current market capitalization? What is your net valuation of these businesses? I understand you probably can't give names, and that's ok that will come up in due diligence, but a general idea would be nice.
3. You would like to take a business development role to scale the business. What is your experience in this previously or currently? Can you give us some idea of your track record and success rate?
4. You are an engineer, a product manager, and an entrepreneur. Can you please give us an example of one of your startups which is either still running or has been sold?
I am not trying to give you a hard time. We just get this mentality, especially on HN, that any money is good money. Answering these questions sure helps to let us know whether or not that is true in an individual case.