Startups Non-technical Founders: When getting your app built, what were your biggest blunders? |
- Non-technical Founders: When getting your app built, what were your biggest blunders?
- Should I raise VC money for my startup? (Rand Fishkin says "no")
- Equity question regarding Storage Unit start up
- High School Kid looking to create a startup
- Offered CTO position at a startup. How much equity should I ask for?
- How to negotiate fair equity for kickstarter campaign
- Structuring a VC deal via equity buyback
| Non-technical Founders: When getting your app built, what were your biggest blunders? Posted: 05 Sep 2018 08:52 AM PDT It feels like it's a given that founders will waste money or lose money getting their MVP developed, or any other iteration there after. If you're non-technical and hired a developer or a dev shop, what was your experience? - What stage were you in the business? - Did the project go out of scope? By how much? - Did the project take longer than you thought? How much longer? - What do you wish you had done instead? - What were some of the signs that you were wasting time/money, or had to leave this developer behind? [link] [comments]  |
| Should I raise VC money for my startup? (Rand Fishkin says "no") Posted: 05 Sep 2018 04:19 AM PDT I started a company about a year ago and am already profitable (yay!). I've had solid but unspectacular growth in a space where there are already a couple other startups raising money.
I think I could keep growing sustainably and have been persuaded that it's a lot smarter to bootstrap rather than take the downside of investors (Rand Fishkin's article on alternatives to VC funding is a must read - https://www.atrium.co/blog/reconsider-vc-funding/).
But I'm conflicted because I ALSO think that not accepting VC money could be the kiss of death. My competitors are going to push hard, and while it's not a zero-sum game, I don't want to lose my first mover advantage.
Seems like companies like Wistia, Buffer, and others are trying to pay back their investors.
How have other entrepreneurs approached this decision? [link] [comments]  |
| Equity question regarding Storage Unit start up Posted: 06 Sep 2018 01:34 AM PDT Hey everyone. I have a question on what's fair in a start up with storage units. Here's the just Husband and BIL have been working on building a storage facility for 2 years now. My husband is doing the majority of the manual labor on getting this thing up and running. Husband agreed (when this was still brother in law's idea) to 18% equity of the business and I was wondering if this is really that fair? The BIL has paid for every part of the building of it (approximately 500k) Does this still come out even in the end? My husband hasn't put a dime into the facility but has been working 70% hours compared to BIL 30% hours. Is 18% enough for 3 years of his work? Thank you in advance. [link] [comments]  |
| High School Kid looking to create a startup Posted: 05 Sep 2018 03:22 PM PDT Hello, I have an idea that I know is possible for a tech product similar to the hoverboard craze of 2015-present. I am a pretty intelligent kid and figure I could run the business, but I have no idea what to do as of now. This is a good time for me to create a startup because the economy is strong and I relatively have nothing to lose. All I have is an idea and 500-1000 bucks. I think I should get some sort of product design (btw is way too expensive) done so I can make a proof-of-concept before I begin producing. Am I completely misguided? What resources can you point me towards to help jumpstart my startup? Anything and everything you have to say is appreciated. [link] [comments]  |
| Offered CTO position at a startup. How much equity should I ask for? Posted: 05 Sep 2018 02:55 PM PDT I worked as CTO at a successful startup a couple of years back where I had about 2-3 percent of the company, which were later broken down into shares. I've been offered a new position as CTO with a company who aren't that mature yet. Raised USD $1.5mil last year, have paying customers, series A is the next raise. Won't go into too much detail but look like they're doing well and I'm interested. Wages are below standard market rate for skill set and experience (that's expected and don't mind). The tricky bit is what to ask for percentage wise in equity. I feel like 2% spread over 2 years (half a % every 6 months) sounds fair? Thanks. [link] [comments]  |
| How to negotiate fair equity for kickstarter campaign Posted: 05 Sep 2018 02:23 PM PDT Hi, r/startups, For the past several months I've been working on a kickstarter project with a local meetup group. Our product is getting close to manufacturing and I need help figuring out how to negotiate fair equity for my contribution. Within this group I have done all of the 3D design, prototyping and R&D, and believe I am entitled to at least 30% of the startup. I recently tried to bring this topic up with the meetup organizer but he told me that this isn't the right time to negotiate fair equity and that profit splitting can be discussed IF the kickstarter is successful. He also mentioned something that wasn't clear initially, that he believes he runs this meetup as a "crowdfunding crash course" which makes it sound like he's the sole owner of this product and everyone else is in it just for a learning experience. Overall I get the feeling that he simply created this group to get help from others to bring his idea to life. What can I do to negotiate fair equity from this project? Since I have done all the prototyping and design work myself, I've considered withholding the CAD files from him as a negotiation tactic but have already given most versions to him and am worried he may just go ahead with manufacturing without me. I still have some more recent versions that I can use to negotiate with him and feel like no matter what we should settle this issue before we carry on. [link] [comments]  |
| Structuring a VC deal via equity buyback Posted: 05 Sep 2018 08:24 AM PDT I am raising some money from a VC (venture capital firm) and want to know how to best structure an equity-buyback/repurchase structure, as a way to repay the VC fund the ROI (return on investment) that they are looking for, which accounts for changes in YOY (year on year) Revenue growth over the course of 5 years. I have calculated a CAGR (compounded annual growth rate) to get the VC the return they want, and have projected out revenues that are realistic over 5 years, but are prone to some potential swings. Does anyone have equity-buyback/repurchase term sheets that they could share with me and the community to help me understand this better? [link] [comments]  |
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