A new start-up is based on an idea and once the idea is turned into a product there often comes a stage where the need for Series A Financing arises to further expand the business, add new features to the product. , retain employees, etc. Venture capitalists, companies like Facebook, Twitter, and Pinterest have become what they are today.
Let’s say you’ve come up with the idea of developing a social casino app for multiple mobile platforms and you strongly believe in the success of the app. However, you don’t have enough money to even start product development. As you need a team of developers, graphic designer, product manager, etc. To develop the social casino app, you need to have sufficient funds to pay them their salaries in exchange for turning their idea into reality. You may think your idea is brilliant, but when บาคาร่าสูตร you finally opt for Series A financing, you must have something important to show investors to convince them that your social casino app is worth financing for a good return on investment. . By the time you prepare for the Series A funding round, your social casino app should also have an impact on the user base to entice VCs to fund the start of your social casino app.
How can you organize enough funds to start your social casino app development and qualify for Series A funding?
You can first seek funds from your friends and family to kick start the development of your social casino app. There is always a good chance that the money you collect from your friends and family is not enough to keep your startup afloat for long. In such a case, you can hire a co-founder to get your money to support your startup, as well as skills and enthusiasm to add value to your social casino app. The co-founder will also get more money through his friends and family, so he can have enough money at his disposal to keep his startup alive for longer and bear the infrastructure, tools and employee expenses than his social casino app development. demand.
Angel Investor Role to Help You Prepare Your Social Casino App for Series A Funding
If the co-founder can’t even prepare his social casino app for Series A funding, he can reach out to angel investors. Angel investors are basically those investors who invest a small amount of money in exchange for convertible debt or equity. An angel investor is different from an institutional venture capitalist, who invests other people’s money. Angel investing has seen a rapid rise in recent years, as many wealthy people view investing in a startup as a better opportunity for a good return on investment than conventional forms of investment.
An important point to keep in mind here is that you must register your company before taking the angel investment round. You can register your business through an attorney or online services. Angel investors generally invest in a startup based on how much they think the startup values.
How would you calculate the percentage of the business that you need to offer to an angel investor in exchange for your significant financing?
Let’s consider that an angel investor has valued his startup at $ 5,00,000 and agrees to invest $ 50,000. Now, you need to apply a simple mathematical calculation. Add the pre-angel financing valuation to the angel financing, and the resulting figure is the post-angel financing valuation of your startup.
$ 5,00,000 (pre-angel financing valuation) + $ 50,000 (angel financing) = $ 5,50,000 (post-angel financing valuation)