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Funding a start up

Posted on 6/14/12 at 8:20 pm
Posted by tigerfan102
Member since Sep 2005
275 posts
Posted on 6/14/12 at 8:20 pm
If I was interested In providing a small investment (<10K), how would I go about locating some different start up companies?
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 6/14/12 at 8:31 pm to
Are you looking for something like an angel investor conference / network? I know so little about that stuff, but I'd love to know more.

Posted by tigerfan102
Member since Sep 2005
275 posts
Posted on 6/14/12 at 9:00 pm to
Yes that's kind of what I had in mind. Just don't really know a lot about it. Obv that can be a problem and I'm not in a hurry to pour cash into anything. Just want to gain some knowledge and explore different possibilites
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 6/14/12 at 11:38 pm to
Honestly, 10K is not enough to play unless you want to give a sole proprietor a small business loan or something of that sort.
Posted by Pilot Tiger
North Carolina
Member since Nov 2005
73142 posts
Posted on 6/15/12 at 7:01 am to
a good friend and neighbor of mine is CTO for a tech start up and from everything I've learned from him, 10k would seem to be a pretty much worthless investment
This post was edited on 6/15/12 at 7:02 am
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 6/15/12 at 9:29 am to
What's typically the minimum investment you need to make if you are allowed to invest in a VC firm like Kleiner Perkins or Sequoia?
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 6/15/12 at 9:38 am to
I could be mistaken but I think you need to be an accredited investor, which is a IRL baller.

The legal definition is here. Individuals generally have to meet these criteria:

quote:

Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000

quote:

Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year

Posted by LSUAfro
Baton Rouge
Member since Aug 2005
12775 posts
Posted on 6/15/12 at 10:36 am to
IRL baller.

oh
quote:

$200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000


Moving along...

I'm actually curious to know what kind of interest rates you can procure on start ups in different industries.
This post was edited on 6/15/12 at 10:38 am
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 6/15/12 at 10:45 am to
Well I obviously already assumed that tigerfan102 was a baller. I'm just wondering what the range for a minimum investment would be like these days for those who wanted to get in with a particular VC firm.
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 6/15/12 at 10:51 am to
quote:

I'm actually curious to know what kind of interest rates you can procure on start ups in different industries.


Typically the arrangements are more complicated than simple loans. Typically the people who do this stuff for a living have to be very good at drawing up contracts, evaluating managerial talent, and thinking about all kinds of contingencies.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 6/15/12 at 12:47 pm to
quote:

I'm just wondering what the range for a minimum investment would be like these days for those who wanted to get in with a particular VC firm.


I don't really know. I'm not sure Kleiner Perkins is even accepting new investors anymore.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 6/15/12 at 12:49 pm to
quote:

Typically the arrangements are more complicated than simple loans. Typically the people who do this stuff for a living have to be very good at drawing up contracts, evaluating managerial talent, and thinking about all kinds of contingencies.


For the general partners running the firm, absolutely. People who simply invest their capital in a VC firm just have to write a check. A big one.
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 6/16/12 at 11:50 am to
I was suggesting it as another option besides angel investing.

For the angel investors, most of them need good lawyers and business sense for how to negotiate flexible early financing deals, no?
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