Localfund.com - All about Fund and Investment
*Home>>>Venture Capitalist

How much of our comany do we "give away" to an angel investor/venture capitalist?


My partners and I have a business and will be in the need for $100,000. We were curious what a fair % of the company would be to give to the VC? Fair for both sides.

Thanks!

That depends entirely on the risk factor to the investor. The risk factor can be calculated by the indications obtained from your "Audited" accounts books. If you have no books then the risk is great but if you have an established trend then the risk is less. You have not supplied enough info here to get a definitive answer doesn't matter who guesses at what. On top of that there are many ways for the investor to become involved ie class A shares, class B shares etc. Just because the investor is taking part of the company that is no indication of worth by itself, you have also to look at other factors such as is your partnership and ownership arrangement permanent or has it got an end date? Is it performance based or are there limits to returns? How much capital has already been spent? What are the company assets? So, many many factors need to be tabled to give you any estimate which means anything at all. Sorry I can't be of more help but picking percentages out of thin air without knowing the facts is useless. Good luck.

Tags
  Venture Investment   Venture Capitalist   Venture Capital   VC Fund   Vanguard Fund   Value Investment
Related information
  • Does anyone know how to get in touch with a venture capitalist?

    That's great! You may want to check this site out, it lets you post your requirements for an investor, and there are investors posting for something to invest in: ...

  • How to get low interest rate loan from NRI funds /venture capitalist?

    The Venture Capitalist, generally invest, in the business, if it appeals, to them. They do not give loan. You can ask any of your NRI friends to deposit, in your bank, in India and take loan, again...

  • Does anybody know where I can find a venture capitalist for a health club?

    There are a bunch of options out there, just takes some digging and some luck, I found the below web-site might be a good place to start with. Good Luck!

    ...
  • What risks are involved when borrowing from a venture capitalist?

    He has complete control over the company.

    ...
  • How do you ptich an idea to a venture capitalist? should i be worried about them stealing my idea?

    Before you go for any investment, including prototype, answer the following questions: 1. what is the target market? (e.g. Man, 18-40, US) 2. Can this target market afford what you want to sell t...

  • How and where can I approach a Venture Capitalist to convert my ideas (7 Ideas) into a business opportunity?

    One thing to remember about VCs -- they hardly ever give to startups especially one that still doesn't exist! Unless you can get a recommendation from a top brass or you're a student at S...

  • What are the disadvantages of using a venture capitalist?

    Venture Capitalists raise capital for a business and provide advisory services during the term of their investment. The capital raised may be in the form of debt or equity in the business. A typica...

  • How do i go about SELLING an innovative business plan to a venture capitalist firm?i have no management team..

    You are dreaming. 1st the VC community is very incestuous. If you are within the community and have an idea, you will get funding. If not, you better show that your venture is throwing off cash o...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster