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Eric, Thanks for your compliment. I’m glad to hear that you found my comments helpful.   There are Venture firms with people who believe their job is to “drive a hard bargain” with the entrepreneur and we do see some forfeiture terms being included- but I wouldn’t say it was the “norm”.   As to your ducks – it is true that capital is attracted to things that are organized (and repelled from that which is diso...

Thanks for the clarification. I realize that I didn`t really give you much in the way of detail. As a professional I asked you to make a broad statement without any understanding of the business being funded. Your answer was a fine example of  a very careful and professional approach. I really can`t ask anything more of you than your professional understanding allows.  I`ve heard of some V.C.`s looking for a 100 percent return on debt financing over time with ...

Eric, First, the ROI an investor would expect is directly related to the risk they perceive they are taking. For a idea startup – I’d say 20% would be on the low side. Venture Capital firms typcially look for 30% plus as the opportunity and usually in 5 years as the limit. While the calculations are rough, I wanted to give you an idea of how an investor will “view” your opportunity. Given that this scenario isn’t appealing – you need to refine (or re-define) your deal so it will make good busi...