Comments on: Oh, go ahead and ask for a five-million-dollar investment in your startup.

By: John Benckert

John Benckert — Wed, 21 Jul 2021 03:13:16 +0000

I could use that 5 million to help everyone that’s been charged with possession of under 50 grams and it could have been a seed? This problem is a real problem and needs to be addressed. Thanks

By: John Benckert

John Benckert — Wed, 21 Jul 2021 03:08:23 +0000

I could use the money to start up a painting company that hirers any individual who has been charged with possession of under 50 grams and now it is legal. I’ve been a victim of this and have had to take under the table jobs most of my life and I still feel like people judge me. God has forgiven me but most people who’ve had this hanging over them were treated unfairly and now that it’s legal it’s still messed up They need some sort of system that works for people in this situation.

By: Cricket Lee

Cricket Lee — Sun, 03 Mar 2019 23:49:19 +0000

Thanks, Dave for your great insight. I certainly have appreciated your consulting and it is so valuable now in the middle of my raise. You are a human encyclopedia of investment information!

By: Tony Zafiropoulos

Tony Zafiropoulos — Sun, 03 Mar 2019 16:08:49 +0000

Patricia, I empathize with your dilemma, but you really have to look at it from an investor’s angle. There are _many_ pitfalls and possible problems that can cause the initiative to fail, so by waiting for the company effort to have some momentum(by sales, vision and exec team efforts) it reduces the risk to investor and entrepreneur.
Yes this method reduces risk to you. You have to prove the market and your ability to make the product somehow. The way to do it without $$ is to ask friends to help you. It does not always mean with money. Ask them to help in the marketing plan. Or make the prototype. Then write plan (get help), thereafter finally present with an eye on raising some funds.

By: arthur lipper

arthur lipper — Fri, 01 Mar 2019 01:15:49 +0000

Investing in the stock of a startup is foolish if the same amount of money as being sought can be used to buy an agreed percentage of the company’s revenues for an agreed period of time. The money is going to be used by the company to create revenues, so why not buy a piece of the revenues?

Using our approach the royalty payments are paid whenever the company receives revenue and there are no conflicts of interest with the company’s founders as to executive compensation, profit reporting policies or pressure to sell the company or go public.

Why would any investor want to invest in early losses, possible profits or benefit from the company being sold, when they can share in the revenues and be paid before anyone else?

Arthur Lipper, Chairman
British Far East Holdings Ltd.

By: Mimi Grant

Mimi Grant — Tue, 26 Feb 2019 18:48:55 +0000

This is yet another brilliant post, Dave. Not only do you share the “why nots,” but the alternatives, and the benefits of holding off going for “professional” investment too early.

By: Patricia Herdman

Patricia Herdman — Tue, 26 Feb 2019 18:42:23 +0000

Studies have shown that successful entrepreneurs come from already privileged, wealthy families. The tiresome and predictable claim that investors only feel compelled to invest when an entrepreneur has gotten her friends and family to toss in their own money assumes that we all come from the right side of the tracks.

My response (when I’m amongst friendly investors) is that for my family to invest, they’d have to commit welfare fraud. Gets a laugh out of them and highlights a very real situation.

If the entrepreneur, herself, has put a load of her own skin in the game, that should be enough for an investor. We don’t all come from privilege and busienss opportunities should not be judged based on how rich our friends and family are or are not.