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We don't want equity sharing but we need about $3K/monthly expenses! Any other options for funding??

We are an early stage startup in a stock market arena with a limited budget and we want to develop themselves. Angels are so greedy, they want 30% - 50% just for $20K! At this time we need about $3K each month for financial market data. Is there any other options for funding??What should we do if we are non-US residents?

17 Replies

Svetlana Parleva
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0
Svetlana Parleva Entrepreneur
Opportunities Creator
Hi Alex,
The simple answer is that there is always an alternative and if you don't want to give equity, you shouldn't, incl. when you are not USA citizens.
There are few great start-ups programs, forums and incubators which don't ask for equity at all.
Drop me a message, if you are still not finded your match.
Kind regards,
Svetlana.

Melissa Chiou
0
0
Melissa Chiou Entrepreneur
Writer/ Graphic Designer
Patreon.com - subscription based funding
Lisa Ezrol Curran, CFA
3
0
Lisa Ezrol Curran, CFA Entrepreneur
founder Perspicua Strategic Partners
First you should reach out to the provider whose data you need to see if they have a program for working with startups or if they have a development or test data feed that you can use. Try reaching out to their business development team - that's often the group that maintains relationships with the startup community. You should also look into FinTech Sandbox (fintechsandbox.org).
Alex Vin
0
0
Alex Vin Entrepreneur
CEO at uDouble
Oh thanks Lisa, never heard about them, useful advice!
Adam Pressman
2
1
Adam Pressman Advisor
I've helped a number of folks become millionaires. I'd like to do it a few more times.
If you're offered $20k for a third to half of your company that means they think it's worth $40-$60k. If you agree, I would sell them the whole thing and do something else. If you don't, I wouldn't sell any equity. If you have customers, perhaps offer a percent of the profit on every sale instead. If you don't get some. If you have a great way to get and keep customers, investors, the kind you want, will find you.
Martin Omansky
3
0
Martin Omansky Entrepreneur
Independent Venture Capital & Private Equity Professional
You are either in the wrong country or talking to the wrong angels. And you are probably not going to meet your objectives with only a $20,000 investment. Also, if you don't want equity sharing, how about profit-sharing? Such a thing is possible in the LLC corporate structure. Please note, however, that investors will not understand your reluctance to share equity. They may even think you are naive, ill-informed, or crazy. My suggestion is to get a good corporate lawyer and take his advice. Sent from my iPhone
Alex Vin
0
1
Alex Vin Entrepreneur
CEO at uDouble
Martin, I'm talking about this moment, we don't want equity sharing right NOW at early-stage! Profit-sharing is a good option for us too...
Thanks
Andre Fox Wilson Sr.
0
2
Andre Fox Wilson Sr. Entrepreneur
Managing Partner | Business Funding
Do you live in America? What are your credit scores? Please reply directly at: [removed to protect privacy]
Mike Davie
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1
Mike Davie Entrepreneur
Founder & CEO at DataStreamX.com
Angels asking for 30-50% is insane. Anything more than 10-20% per round is bad business in general.

There are alternatives to get your hands on market data, including us which can help you get off the ground. Let us know what you are looking for and we should be able to help.
Miguel Hidalgo
1
1
Miguel Hidalgo Advisor
Mighty Micro-Multinational Entrepreneur
Hello Mr Alex Vin, The information provided is limited, therefore, my answer may not suit your needs. First, take away the ego and look at your endeavor from a different perspective. No one is going to give you money if they: 1) don't know you 2) don't see you at MVP (minimum viable product) so that they can see your work, sweat equity, startup team coordination, traction (momentum) and customer proliferation (not profitizing, but at least monetizing. Otherwise, what's the value you have to offer an angel investor...TODAY. $20K is not just, it's a lot of money. Again, take away the ego. You startup team can be smart and passionate, but don't carry an attitude of expectation, deservance or entitlement. Humbly present yourselves as earnest and passionate entrepreneurs, regardless of how others behave. Would you give $20K to a group of college kids from your university with the question you posed? If you are non-US residents, so what. A member of the startup team, hopefully a co-founder must go to where the action is. Where on planet Earth would you have the best success to make a presentation to a group of investors who understand your industry? Would it be Silicon Valley, Hong Kong or other emerging "venture" cities? To investigate, begin by doing your homework on the Internet to find potential investors and investor groups. Perhaps there are several in your city or nearby? Find an investor in your neighborhood who: 1) understands your business, 2) has invested in businesses similar to yours, and 3) will not break a sweat or lose their livelihood because you fail, which happens to 90% of startups in 5 years. A sophisticated investor invests in 10 - 12 startups knowing that maybe one will make it. On the unicorn meter, the odds are much higher. So, from an investors point of view, how well can you present your team, product and establish a track record (monetizing) before they give you $20K? Stock, so what. Promises have no stock value. What is the value of that stock...TODAY? Here are suggestions that two startups successfully raised capital, and their endeavors are performing admirably after six years. By the way, it took about 8 months for them to prepare themselves before they began knocking on doors. $15k pre-sale to open the doors. $20k hard money loan on 20% interest payable in 15 months on a promissory note. No prepayment penalty. It took $29,000 to pay the investor back. $15k micro-loan from a local investor group, negotiate between 5 to 10%, but avoid this route. Be stingy until you are monetizing, get down to 5%. Angels had no equity, no partnership Depending on the needs of your startup team, recruit a co-founder with the expertise and financial ability to pay the bills. And, yes, if that expert is outstanding, 30% could be fair. You are in a founder group. find one or two experts in your business. Perhaps they will do the work in exchange for stock, and the entire team can build value together? In my experiences, never ask from family or relatives. Select investors with experience at what you are doing. Good luck in all your endeavors! Miguel Hidalgo
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