What is a fair amount for Investors to make?

DougsterDougster Posts: 4subscriber
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
 

Comments

  • MNGrillGuyMNGrillGuy Posts: 2subscriber
    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.   
  • DougsterDougster Posts: 4subscriber
    Thanks for the imput Travis and love your goal there!
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber 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.
  • jgehawk100jgehawk100 Posts: 0subscriber
    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
  • DougsterDougster Posts: 4subscriber
    Interesting J,
    Do you have a working role in them at all?
     If so to what degree?
    Thanks for any imput.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber 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.
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