WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

What is a fair amount for Investors to make?

DougsterDougster subscriber Posts: 4
edited June 2008 in Startup Funding
Aloha from Indy everyone.
Here is a question that I have and perhaps others do as well.
 
I am trying to secure some funding from Investors and I want to obviously be fair and treated fairly as well.
What is the going rate for Investors and what is a good insentive for them for their ROI?
 
I am not really wanting to go public at this rate so stock isn`t an option, I would want to provide a good "cash back program"  
I would imagine a % of the business could be an option as well.
 
Is there anywhere I could research this topic or is it somewhere here I haven`t yet found?
 
Thanks much for any info.
Doug
 
· Share on Google+ Share on FacebookShare on Twitter

Comments

  • MNGrillGuyMNGrillGuy subscriber Posts: 2 Member
    Investors will want a piece of the company which they feel adequately compensates them for the risk.  50-80% yr/yr on their investment would be a good place to start.   
    · Share on Google+ Share on FacebookShare on Twitter
  • DougsterDougster subscriber Posts: 4
    Thanks for the imput Travis and love your goal there!
    · Share on Google+ Share on FacebookShare on Twitter
  • robertjrobertj subscriber Posts: 0 Member
    Investors will want a piece of the company which they feel adequately compensates them for the risk.  50-80% yr/yr on their investment would be a good place to start.   
    Travis,
    I gather from your comment that you have been hanging out with VC`s who like to travel in the fast lane. Like the one who told me the other day that they only look at situations where they can expect to get 30 X on their investment.
    That`s pretty steep for most of us mere mortals.
    · Share on Google+ Share on FacebookShare on Twitter
  • jgehawk100jgehawk100 subscriber Posts: 0
    I have 2 companies going in industries where I consider myself an expert...I gave up more than half to get them funded, operated and backed with partners that could bring in business, etc.
    I`m only 35% of my own soul in one.
    I`m 40% of my "baby" in the other.
    I guess that`s the price you pay to be in business. It sure beats having 100% of the work in the old cubicle and 0% of ownership...
    - j
    · Share on Google+ Share on FacebookShare on Twitter
  • DougsterDougster subscriber Posts: 4
    Interesting J,
    Do you have a working role in them at all?
     If so to what degree?
    Thanks for any imput.
    · Share on Google+ Share on FacebookShare on Twitter
  • robertjrobertj subscriber Posts: 0 Member
    I have 2 companies going in industries where I consider myself an expert...I gave up more than half to get them funded, operated and backed with partners that could bring in business, etc.I`m only 35% of my own soul in one.I`m 40% of my "baby" in the other.I guess that`s the price you pay to be in business. It sure beats having 100% of the work in the old cubicle and 0% of ownership...- j
    J,
    Congratulations on getting the funding - although the percentages seem high for first rounds (if that is the case). Good luck with them both.
    · Share on Google+ Share on FacebookShare on Twitter
Sign In or Register to comment.