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Doubts about investors and start up

Hello,everyone! I am thinking of starting a business but I'll be needing 300k USD to get my product out. My doubts are:

If I need 300k, should I ask for more like 500k or more as I want to not give more than 15% ownership to an investor.

How should I split the ownership equity.

How much do investors invest. Will they be willing to invest more than 300/500k If I ask?

I don't have a co-founder. Should I make my brother one or an investor one or both of them.

Can I own A patent on my name and start the idea on the company's name. If I get investors to invest in the company and if I sell my IP, will I get all the proceedings or will it be split into the company.

can I make a deal with an investor,for example- If he is not investing 100k for 10% ownership can I tell him that I can give him 6-7% ownership for a discounted cost? Or I can give him ownership equity and a board position or co founder position for higher price.

can ownership be in decimal?

Thank you for your time ; )

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2 answers

If you want to raise money, you need a strong team with people with different competencies. You cannot build a team and protect your idea at the same time. The best way in my opinion is to build a team and to develop your idea as fast as possible, because you will not have the means to defend your patent if you don't have money.

Report Christophe's answer

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I agree with Parot. You need a strong, reliable, trustworthy team. If your idea is as good as you believe, patent is very important. Since I believe (from your question) you are in the early stages of creation, I wouldn't worry too much about the investors just yet. You need to get the patent off the ground and transform your idea to reality. By just having an idea without an official product, no investor will want to invest in an idea without having a concept. It is similar to saying I have a great idea on opening a restaurant but I need money to open the restaurant. You need to have more concrete information such as patents, business plan, and business strategy. Answering many of your questions you posted is the start. You form either a partnership, sole proprietorship, or LLC (business). You file the patent under your business name.

When it comes to equity, investors and market share, you need to make sure your numbers are accurate. By asking 10% stake for 100k, your valuating your business at 1 million dollars. Is your business worth 1 million? Since the business does not exist quite yet, laying a strong foundation in how you form is important. If you are providing a discount to shares of your company, you are essentially selling your shares of the business at a discount to your investor. And I would say that board positions aren't formed until the company, business, and products are off the ground. Hope that helps!

Report Jason's answer

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