Hosted by Jay Adelson.
Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips, and answering questions. Ask Jay how to turn any business idea into reality: email@example.com, @jayadelson, or http://youtube.com/askjayadelson Read More
Successful entrepreneur and CEO, Jay Adelson, demystifies the start-up process by providing advice, tips, and answering questions. Today he discusses what percentage of your company an investor takes.
Jay's Chalkboard Notes:
1. Angels with a $10K - $250K investment take 5%-15%
2. Having a prototype prior to funding lowers the amount you give away
3. VC in series A with a $1 million+ investment take 30%
4. When investors are competing, it can be lowered to 20%
5. It should never go over 30%
6. You can reduce % by de-risking the business: hire a team, create a prototype, raise angel $$, get customer letters of intent
Your takeaway assignment based on today's question is to talk to others who have raised money (ask for references from investors if you don't know anyone), and ask how much they gave away in the same round. Define/list what you have that brings value: prototype, team members, letter of intent for team or customers, code, a valuable domain name, anything that de-risks the company. Present this list during negotiations.
Netflix streams TV shows & movies directly to your home saving you time, money and hassle. As a Netflix unlimited member you can instantly watch TV episodes & movies streaming directly to your PC, Mac or right to your TV with your Xbox 360, PS3, or Nintendo Wii console. Watch as many movies as you want, any time you want! Cancel anytime! Get your FREE Trial membership. Go to www.netflix.com/askjay and sign up NOW!