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Earlier quoted context omitted.
What if a product is doing pretty good, but it's not enough to support two founders yet? If they can put all their effort into the company it would accelerate growth (from 25% + 25% to 200% founders). And if that only takes $200k how is that different?
If $200k is good but $500k is not as good, it smells like a lifestyle business. That's not bad, but it's not a good investment for me.
Do you do back channel reference checks on founders?
Earlier quoted context omitted.
Gotcha, thanks. What's a fair equity share for an advisor, btw?
I dunno that one. It's typically not much.
This can vary widely, of course, for special cases, but something along these lines is probably the norm in the Valley. As you note, not much.
The "valley advantage": what attributes of a business makes a company most able to take advantage of the valley? Do this apply to b2b as much or just consumer tech? PS for the uninitiated, AMA = ask me anything
I think the Valley offers much easier access to funding. There are also lots of support organizations here -- lawyers, banks, etc, who will understand your needs much better. I don't understand b2b and am terrified of it.
I'm a big fan of the ideals of 37 Signals, such as embrace constraints, bootstrapping, etc. But, I feel that my day job is getting in the way i.e. time. Should I take the plunge and seek angel or continue on my bootstrapping adventures?
In general how far along is the startup by the time you invest?
Let's say you invest 25k in a company. What's your expectation on when you will receive money, and how much are you expecting to receive?
Was the recent stock market plummet your fault? Did you sabotage the investment banking industry on your way out? Do you do back channel reference checks on founders?