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This is a question that requires far more than a simple 10-minute answer, as due diligence is an extremely complex subject and only having a few "quick tips" would put you in a very vulnerable position. Generally speaking though, the key areas that you would want to focus on (depending on the ty...
Angel Investors will understand that you have a need to draw a salary... but the idea of taking their cash and putting it to personal use would be a "no-go". If you were on your Series C of Venture Capital, raising $100M and you wanted to sell $3M of shares to buy yourself a nice house, for inst...
Basically you're extrapolating future sales that you expect will come from these 50,000 customers. So it's really a question of assumptions + existing data. Knowing the average sale amount of $120 is nice, but it's really inadequate. How saturated are those customers in terms of ongoing purcha...
Commercial real estate is completely different animal than residential. Loop.net is a popular site where you can review commercial deals. Outside of that you need to find pocket listings and build relationships with brokers and Realtors that list commercial properties. You can also go to http://w...
Whenever shares (or options) are issued, the language is normally "fully-diluted shares"... and what that means is that you *authorize* the number of shares necessary for all potential [foreseeable] options to vest. You'll need to stop talking "%" and start talking in actual share numbers. Let'...
A convertible note is a possible route. It would provide the owner with a discount to the price set at your next round of funding. For example, assume you give the note holder a 50% discount on your next round. Then your Seed Round sets the price at $10 per share/unit, the note owner would be abl...
You must be very careful about this type of loan, as doing this wrong can have profound tax effects. This is called imputed interest penalty. So the IRS can determine a loan was paid back incorrectly + ascribe some random interest rate, then require you pay back taxes + penalties on whatever rate...
Get on AngelList (angel.co), it's widely used by web and e-commerce investors. Best way to get visibility.
Depends. How much do you really need to build out your app? If you don't need investor money, better to avoid it. And how will you disrupt the space? I don't think there are any shortcuts to organizing.
The decision to raise equity capital would be made based on these criteria: (a) Size of your market: Is it a big market, meaning you have a chance to hit $100M in revenue in 5-8 years? (b) What is your YoY growth rate? (c) Will infusion of equity capital help you greatly accelerate your YoY growt...