I didn't see any of my fellow investors take 49% of a company via an investment unless it is a corporate turnaround and/or an acquisition deal. From where did you get such a figure from?

That's a good observation, one which I noticed many whom are seeking investments in Malaysia do not understand (ie. leveraging on other's wisdom and connections)

It varies (typically) based on the amount of help (not just money) given to the startup.

Typical percentages ranges from 3 - 20%

Valuation is done differently by different investors. Some adopt market size as a primary gauge, others adopt extrapolation of billable invoices within 12 months, and so on and so forth. There is no fixed formula.

Reference to this post, which entrepreneur in his/her right mind would reject a FIXED RATE, FIXED TERM bank loan in favour of an EQUITY investor?

That wasn't my impression with the post, I bold-ed the words you written in the other post which clearly indicates that he REJECTS the use of bank loans.

In any case, if this is truly a good product, why isn't the inventor willing to take up personal lines of credit and/or mortgage his home and/or dip into his own savings? This is one clear sign to investors that this person has no sincerity or conviction in his own product. Personally I would never invest in such a person.



This post has been edited by Nicholas Chan: Jul 18 2013, 10:08 AM

You use a dramatized show as a gauge for professional information?

Your statement actually proves that in saying you gave an individual 20% stake per angel to be correct accordingly to my previous message; as reference in my reply yesterday angels typically take anywhere from 3 - 20% individually.

So to say that you gave 2 separate angel investors 40%, or as another example 3 separate angels 60%, and conflate it to the claim that a typical angel take 49% is rather disingenuous.

If making conclusions based on the exact words you say are "jumping to conclusions", I don't know what quantifiable facts can any investor then use factually as a gauge in your case.

A company is led by its people, not its technology. Its success does not lie in paper plans nor in intellectual property.

You are free to your opinions on that statement. I am free to mine as a person that puts my money where my mouth is.