There is not a definitive answer to this, because a good lawyer can write terms into either one to make one or the other preferable to one or the other party.
There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. Yet, according to many sources, over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it.
According to the book, “Small Business, Big Vision,” by self-made entrepreneurs Adam and Matthew Toren, it’s really a question of need versus want. We all want to have our vision realized sooner rather than later, but it can be a big mistake to bring in investors rather than patiently building your business at a slow, steady pace (organic growth). Read more
While there are differences in the startup communities on the two coasts, and while there are definite differences in the investment communities, I’ve found much less of a difference in the types of companies being started. Read more
The Pacific Northwest has some of the best and most active angel groups in the country (and I say that coming from New York!) Check out: Read more
If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. These are the questions that get past the hype of a founder “vision to change the world,” and into the realm of real business strengths, weaknesses, and current health.
Some founders try to deflect these questions by talking incessantly, so you often need to be calm, patient, and persistent to get the answers. My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: Read more
The problem with this scenario is that you are describing an oxymoron, and wondering why you can’t find a hot ice cube, or a tall hole, or a submarine that can land at ATL. You write:
“Where can I find intelligent and serious investors who aren’t looking for a cash cow, but are willing to use their funds to contribute to an emerging market and make a lot of people happy?” Read more
Actively build, maintain and make use of the amazing social networking tools that are available. Right now, there are over 11 million people who can provide an introduction to me through LinkedIn (and I am far from an open networker.)
If you can’t figure out how to get one of those eleven MILLION people to recommend you to me, that’s probably a good indication that you may not be quite ready yet to be a successful entrepreneur in the US.
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *