Startup Funding Rounds - Angel Investors vs Venture Capitalists

[@danielcunder7767]

Hello Heini, I came across your youtube channel RawStartup. As I have decided to venture into healthcare technology startupping and we are at a deployed MVP, wanted to brush up on the investor approach. Your channel is brilliant and I wanted to thank you for that. Especially the perspective on traction and revenue in various rounds.

[@RawStartup]

Thank you very much, I appreciate it

[@ronque23]

Thank you for breaking that down. Most startup videos just assume we know this stuff.

[@RawStartup]

Glad it was helpful!

[@deniskesiov3594]

Thank you for the brilliant sequence and content, Mister."

[@RawStartup]

Thank you very much 😎

[@javirivas1972]

One of your most helpful videos. Kudos Heini. The only thing I missed is what equity would typically each investor look at, at each stage. What piece of the pie they want. It's there for one or two, though.

[@RawStartup]

Thanks average is 20% but can vary a lot

[@sadekhossain9566]

Thanks, was able to clear my doubts :)

[@RawStartup]

Glad it helped!

[@yotamzakay5208]

great video, thx alot will be glad for relating to debt raising vs equity in the eyes of investors by stages:)

[@RawStartup]

Thanks yes very interesting question. Will put it on the list.

[@AndreasNielsendk]

Great video! Your speed of improvements are incredible. I have One question: How about equity for employees - when, how much and for who? :-)

[@RawStartup]

Great question, the answer is certainly yes, lots of equity for the employees, but covering that fully requires a full video. I've now put it on the subject list. Thanks.

[@eric_martindale1711]

@@RawStartup I'm getting ready to pull the trigger on this. Searching for the video now...

[@mdriyadhamin1562]

hi, can you make a video, how the startups are valued at different Level of Funding rounds ?

[@RawStartup]

How about this one: kzbin.info/www/bejne/kIK6c3uPqaion6c

[@imanaghay4934]

I have a complex question and I’m wondering if this is the right place to ask you or if there is a better way to get advice from you one on one. I’ve built businesses before to seven figures and am relatively known in my industry. But I’ve never built a company to sell. Never raised money. I’ve invested on other companies through an angel fund that I’m a member of but never been on the due diligence committee to learn that process. Two brothers who are working on an app approached me to invest on their company and back their app. I noticed a few major red flags from my point of view: 1- their system wasn’t scalable (they had expense per every new user) 2- their company is three years old, their app is developed and their income is minimal 3- they are two brothers who will have the majority of the company I know how they can make their app scalable. My suggestion to them was to: 1- start a new company in BC, Canada where I’m located (they are located in San Diego) In BC we have many government support for tech companies (30% refund on investments, 60% refund on salaries toward research and development, so on and so forth). Also the angel fund I’m a member of is located in BC and only invest in BC companies because of the support we get here. 2- instead of having me as an investor, have me as the 50% founding partner of the new company so we break the danger of two brothers owning more than 50% of the company 3- we transfer the IP from their current company to the new company so we speed up the development in the new company. Obviously I cover my share in cash to match their contribution. 4- that way we can start with a clean slate and do a round of seed fund (around $200k) for the new development to have the new scalable app Am I on the right path or totally off track?

[@RawStartup]

I obviously have limited knowledge here, but with what I know I share your concerns. The brothers part can become a serious problem for you if they control everything. I think you've made them a fair offer. They may or may not take it, but this is what you're comfortable offering.

[@imanaghay4934]

@@RawStartup thanks for the response. Do you offer any mentorship program or private one on one consultation?

[@miauw2631]

Sangat bermanfaat 👍

[@RawStartup]

Thanks, glad you liked it!

[@megmog953]

Hi looking to local community to raise pre-seed investment for startup. But also need money to pay rent. Selling my house but can take a while. Want to focus on the project. Can give guarenties through escrow and lawyer to be as transparent as I can. But I am at loss over how to guaranty for the extra needed for my rent until my house is sold. Don't want to seem lazy or untrustworthy. Any advice? Am I unreasonable?

[@RawStartup]

Thanks, really hard for me to help on this one. Find someone you can speak to locally.

[@musictorelaxandunwind]

hi where to start get funding for startup accounting cloud software

[@RawStartup]

Please check this video: kzbin.info/www/bejne/gqnPgYp3l6maecU

[@jacke1862]

Hi i got a question. . Considering that it will take a long time from meeting investors to actually reciving their investment how is it going to be possible to aquire and motivate the team in this period without any money. And is it even possible to assemble a team before having met investor and still get investors exited?

[@RawStartup]

Yes that is the job of the founders, to motivate the team even when there isn't too much money. I certainly wouldn't hire anyone till the money is in the bank. Anyone that comes on board before any funding I would assume is there for a different reason, could be equity or a grand vision to change the world!

[@armandogates3303]

Great video thank you so much. I have one question: we are in need of 144M $ LC to your knowledge buyer is ready and the contract (5 years).I wander if vc accept financing us. Thank you again

[@RawStartup]

Thanks, glad you liked the video. It is very hard for me to make that call, not really sure.

[@eric_martindale1711]

Love the content. Thank you! Subscribed and following. QQ: Is it ridiculous to seek out an Angel at an annual rev of $3M? I have only used business debt so far, but can't get around the need for debt. Just don't want the complexity of a VC. Am I off track?

[@RawStartup]

Thanks, glad you liked it. I think you can go for an angel at that stage, it is a choice. You understand the difference and I think that is fine. There is more complexity around a VC and that is also why it will give you a stamp of approval that may help in your business. A VC has more procedures and yes complexity, but it may also give you more credibility as business.

[@eric_martindale1711]

@@RawStartup thank you sincerely for the detailed reply! That is extremely helpful. The guys at Gust told me I wasn't a good fit (for them), due to the stage the business is now, so I appreciate the clarification. Looking forward to working my way through the rest of your videos.