Raising Money for a StartUp Company
I’ve spent a good deal of time in the past 12 months raising money for docstoc. I thought I understood the process, but before you really go through it yourself for your own company, its hard to get the full essence of the experience while on the sidelines.
I had selectively helped some folks raise money for their companies in my last consulting business. The truth is, no one should ever be a better fundraiser for a startup than its founders. And if you are relying on an outside 3rd party to “raise you money”, you’re likely in for a huge waste of time.
I recently found a paper I wrote while in law school on a variety of topics about raising money for startups. While it certainly won’t make any dough magically appear, in re-reading it, I do think it gives a helpful overview of the process and some important legal points, for those new to the process.
I broke it down into the following sections:
The Funding Lifecycle; Business Planning; Bootstrapping; Raising Money from Friends and Family; Legal Issues with Raising Capital; Requirement for Private Placement Memorandum; C Corporation vs. LLC, Angel Investors vs Venture Capital, California Angel Investor Groups, Trends in Angel Investment, and Typical Term Sheet Clauses
Here is the full paper on Raising Money for a StartUP Company
Raising Money for a StartUp Company – Get more Business Plans
You should also check out my friend Adeo Ressi’s (founder of thefunded.com) presentation on How to Pitch VC’s
How to Pitch VCs by the founder of TheFunded.com – Get more Business Plans
You can also find lots of helpful business planing templates on docstoc
Quote from C corporation v. LLC: “Most states cap the number of members a LLC can have.”
Perhaps you were thinking of S corporations. I’m not aware of any state capping the number of LLC members. To my knowledge, the major tax advantage for LLCs v C or S corporations is if the startup is to be highly leveraged:
http://llcoperatingagreement.blogspot.com/2008/05/tax-advantages-of-llcs.html
[...] check out Jason Nazar’s Guide to Raising Money for a Startup Company. Jason is the CEO of Docstoc.com, an online community for document [...]
From vBharat.com » Raising Money for a StartUp Company…
I had selectively helped some folks raise money for their companies in my last consulting business. The truth is, no one should ever be a better fundraiser for a startup than its founders. And if you are relying on an outside 3rd party to “raise you …
[...] found this report that Jason Nazar, founder of docstoc.com, wrote on raising capital. It provides a great overview of the entire [...]
I love your work!
Check out our web site. We are looking for funding now. We are in LA and I would like to meet you.
Thanks
Lawrence Kazali
[...] για το διάβασμα του Σαββατοκύριακου, το ένα είναι του Jason Nazar, ιδρυτή του docstoc.com και θα το βρείτε στο παρακάτω link Raising [...]
Hello webmaster
I would like to share with you a link to your site
write me here preonrelt@mail.ru
I love your info! Thanks!
I love this blog. Thanks for the great information. I have it bookmarked and will be back. If anybody needs creating a new credit file don’t hesitate to come on over.
I like that you can enter info at your leisure, so once the 1098s and W2s start trickling in, I can update my return. Once the last piece of paper comes in, I am ready to file in a matter of minutes.
When you do your tax return electronically, you can be sure that the information is correct. Not more than one person to read manually, tax forms.
Use IRS tax extension form 1127 if you are asking the IRS to postpone payment of the full amount of your tax debt. If you can pay the full amount in one chunk, just not by April 15, file this tax extension form.
Very thought provoking post about Raising Money for a StartUp Company Jason Nazar's Blog. I enjoyed reading it. Are these real images or has the artwork been edited. Thanks for blogging this useful information.
Tip 1: Looks Like You Need To Blog Like A Real Person Actually there are lots of good Internet marketing blogs out there that give great advice.
Skate Longboards