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Finds investors and their portion

I have found a great engineering idea in university, and i am going to run my own business using this idea.

1- If an investor accepts to invest about 100 unit on my idea (100% of the investment on idea) and after one year our company earn 10 unit net. How many units can I expect to earn out of this 10 units?

2- What is the best way to find investors?

Answer 5985

It sounds like you are going to have a passive investor fund your idea? In that case, you will need to work out the terms directly with the investor. Sounds like they will either be an early stage angel investor or a co-founder. In either case, here is a really helpful tool to help you approach the decision of the equity split.

As far as where to find them? There are generally four sources. In order of timing (earliest first) they are as follows.

  1. The entrepreneur himself.
  2. Friends, family and associates of the entrepreneur.
  3. Angel investors.
  4. Venture capitalists.

There are online communities and local clubs/organizations in major metro areas for Angels, VCs and entrepreneurs to meet.


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