Growth Funding and Angels

RyanRayRyanRay Posts: 1subscriber
edited April 2007 in Growth Funding
I have a friend who`s also in the startup mode producing a very popular television series. He`s got 3 angels that initially kicked in $30k and he`s been bootstrapping for the past 2 years. The product is exceptional but with the production costs and network buys he`s having a very hard time making ends meet. He`s looking to either dilute shares and give up some of his ownership, or ask the angels for more capitol. Given he`s essentially only completed round 1, I didn`t think it was out of the question for him to do this, but these angels seem reluctant to put in more money, even though this guy`s been making huge concessions at his own personal expense.
Does anyone know where there`s any public information on the typical "funding rounds" for a startup? In other words, how can this guy change the expectations of his angels that it typically takes more than one small round of seed money to get a business off the ground?
Any advice or information would be greatly appreciated.
 RyanRay2007-4-12 10:17:23

Comments

  • RyanRayRyanRay Posts: 1subscriber
    The investors aren`t asking for more control, but they seem hesitant to put more money in. They don`t seem to be against a dilution, but that`s up in the air at this point. I don`t think these angels really have a sense of the typical funding process and I was trying to see if I could dig up some information he could provide to help school them a bit. I think they were expection to put $30k a piece in and immediately see their return. After 2 years of building a great product and sinking a ton of his own money in while not taking out a dime, he`s at a crucial point where more dollars are required (with a $300k year burn rate.)
    There`s tons of potential from corporate advertisers and sponsorships, but to get to a national aring, he really needs to complete another round.
    I realize all this is entirely dependant on his situation, company structure, investors position, etc. but I was hoping to find some general information that would help him strategize for the next round with his current angels.
    Thanks for the replies.
    Ryan
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