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

Growth Funding and Angels

RyanRayRyanRay subscriber Posts: 1
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


  • RyanRayRyanRay subscriber Posts: 1
    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.
Sign In or Register to comment.