Hello fellow entrepreneurs,
Being a major fan of the Series "Shark Tank", I love the ideas and the confidence of entrepreneurs going to get bitten by the Sharks or swim with them. As an entrepreneur who'd love to pitch my ideas to investors but i have a question and its a fundamental one.

How can one understand the numbers when pitching your ideas to investors.
For Example:

$250k for 10% equity
$3M for 50% equity

I'd really appreciate it if forum members could direct me to websites where i can learn the financial part of running a startup.

Thanks in Advance.
 

VirtualGlobalPhone

Moderator
Top Poster Of Month
Hello @Olagoke Tobi Enoch , Welcome to BizWarriors,

The answer to your question is not as simple as the question for sure. I hope many will try to address this in details, but my question to you is "Do you really want to part away" the fundamental right of ownership for couple $ 'Money' ?
 
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Hello @Olagoke Tobi Enoch , Welcome to BizWarriors,

Thanks for the love. I really appreciate.

my question to you is "Do you really want to part away" the fundamental right of ownership for couple $ 'Money' ?

I got those numbers from the Series. The Havejac Millionaire made the preposition to an Entrepreneur.
The answer to your question is not as simple as the question for sure. I hope many will try to address this in details,

OK thanks. But if you can profer a place where I can learn more about Financing for Startups especially pitching to investors I'd love it.

Thanks for the reply.
 
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T J Tutor

Member
How can one understand the numbers when pitching your ideas to investors.
For Example:

$250k for 10% equity
$3M for 50% equity

Okay, so understanding numbers comes from a very simple set of formulas and numbers in the beginning. These numbers are developed in your business plan. That's right, you have to have a business plan! Always!

The numbers in your plan for a new business that is on paper only have to be far more explicit and far more researched. The reason for this is that anyone that invests in businesses that are not yet opened (theoretical businesses) need to be educated on the market, the people that are going to be in the business, and the current success of competitors already in the market with your proposed business, and the earning s potential based on the research you provide. Getting investors for a theoretical business is very difficult and less than one in 2000 theoretical businesses get any type of first stage funding.

The numbers for an existing business can be extrapolated on, and projected by, examining your current cash flow, your market penetration, and what your expansion plan is.

With the cases on the Shark Tank, the vast majority of them are existing businesses. These existing businesses on the Shark Tank have turned over a prospectus and a proforma along with current financials to the investors prior to the shows taping so that the investors can have a set of brains to make decisions during taping. Also, the investors reserve the right to retract their commitment made during taping if the documents provided don't prove to be accurate.

I'd really appreciate it if forum members could direct me to websites where i can learn the financial part of running a startup.

Running a start-up is an ambiguous statement. If all you want to know is how to run a business, then get some business training (on the job training). As for learning to manage finances for a business, you really need to take some business classes for this.

If you are asking how to run a business, well I recommend getting some education and some hands on experience by joining a company that gives you real world experience before jumping out into the world with just an idea and no experience in business.

People invest in people as much as they invest in business. If you are trying to sell an idea for a business to business people, they are going to expect you have knowledge and experience. Every time!
 
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