Jason KrausPrepare 4 VC founder and startup consultant
Bio

Helping startups raise funding one pitch deck at a time; Prepare 4 VC founder; Equity Venture Partners director of VC



Recent Answers


Convertible notes or Simple Agreements for Future Equity (SAFE) solve this and defer the valuation until you have traction. Standard agreements provide a 9-12+ month runway of capital for launch in exchange for a 20% discount to a priced equity round that you raise (sometimes with valuation that cap that places a minimum equity amount for these investors).


At this time, the main tool to reach backers for your ICO are the whitepaper and the discussion platforms to answer questions that arise from potential backers. These two aspects have been disconnected, usually with a PDF version of the whitepaper and a comment board on a discussion site, but Mattervest is changing that model. The Mattervest site hosts interactive whitepapers, where users can comment and ask questions on each section of the document right inside of the whitepaper. Check it out at http://mattervest.com/evermarkets and http://mattervest.com/digipulse


The main question to ask here is "Why do people use my product or service?" If the answer is functionality, cost, or a variety of other reasons, then starting with a simple design and getting your product out there quickly is the best path.

If your answer is "All the other sites are boring, old-fashioned and uninviting" or you are simply coming in as a luxury brand in a space, then investing heavily in design is key. However, there are cost-effective ways to do this as well, such as creating digital mockups and gaining feedback from potential customers and investors prior to the full design work.

Let's chat further as I work with some very skilled designers at every level of your budget.


Check out HelloMogo at https://mogoagency.com/ministry or https://mogoagency.com/coach as they have a great system for creating, managing and selling your own online courses, blogs, or workbooks. I'd be happy to introduce you to the CEO, Jake Press, that I have worked with as well to speak to you directly.


Start with a Web App for testing and use a code-free database site like www.bubble.is
We built www.mattervest.com on Bubble without code and started about a month ago. Happy to chat about the experience further and other options as well.


There are two parts you need to consider in making this decision: 1)the total value of the discount and branding & marketing services to your company and 2) the value of your company.

Part 1) The value of the services is an "opportunity cost" of using this company. If you were to hire another firm with the all of the same qualities, skills and timeline, how much more would you have to spend in cash for the same development, branding and marketing services. Call this figure X

Part 2) Develop your valuation for your company that would use for an investment at this stage. Call this figure Y.

If X/(X+Y) is greater than 12%, then you should do the deal, otherwise you should not.

Example: If all of the services are worth 20K to your company, and you value your company at 140K, then you should be willing to give up 12.5% and would take the deal. If all of the services are worth 20K to your company, and you value your company at 150K+, then you should be willing to give up 11.7% and would decline the deal


The examples you have given are dependent upon having users in the area (others date around you, others to do your tasks that live nearby, etc.). These startups find an initial group of users in localized markets before expanding to other locations, usually offering an option to be notified when there are enough users in your area for the launch. The userbase does not have to be huge, just enough to fine tune results and offer concrete data "We tested our dating app in Cambridge, MA and 25% of test users went on a date in the first month. Users tended to click on the interests section the most, so we made that the highlighted section of a profile..."


Contact on Clarity

$ 1.67 /min

N/A Rating
Schedule a Call

Send Message

Stats

7

Answers
Calls

Areas of Expertise

No topics selected.0


Access Startup Experts

Connect with over 20,000 Startup Experts to answer your questions.

Learn More

Copyright © 2020 Startups.com LLC. All rights reserved.