Questions about investors, incubators, AngelList, and more.

[Owen]

Alright, so I'm in the process of launching a startup called FreeFall. Basically, I've taken a more (realistic) approach to it. I took clients I had from my electronic repair business and starting the company up. Basically it's an app, I'll go into further details in the future once this is up and running.

I'm dumping a lot of money, borrowing money from people (parents, friends, etc.) and paying these programmers to make the app. It's almost done, it should be ready to be tested within the next couple weeks to a month (deadline is July 1, 2015.)

Lately I've been obsessing over a website called AngelList (http://angel.co). It's where Uber got going, Patreon recently started going, and has done some great work in the venture industry. I was wondering if I have an app made, a few clients on the app, and have a solid concept will investors still be interested? Since most of you here know I'm only 15 (16 in July), I'm worried if I present this to an investor and incubator they'll back out once they see my age. Since my only partner is a 18 year old (Ryan's back, he's not going to college, he's actually spending time, life's great right now lol.) and then I have Kulin, who's only 17.

I really am concerned. Plus is an incubator really worth it? I mean most invest a good chunk of money into seeds which is great. I don't know what to do. Any help?

One thing I'd love to have is a business advisor, you know someone to help us through the process until we go public. Where can I get one of those?



Thanks,
Owen

[vangogh]

I think we would need to know a little something about the app before anyone guess at whether investors will be interested. I don't think anyone (outside of family and friends) will give you money just because you have an app. It depends on what the app does and whether or not investors think the company will grow enough for them to get a return on their investment.

Don't worry about your age. People invest in companies run by young people. People invest in companies because they think the return on their investment will be worth the risk of investing. I think your maturity will count more than your age.

One question I'd ask is do you really need someone to invest in your company? Can your company make money without investment? Aside from hiring programmers what do you need the money for? Have you thought of brining a programmer on board into the company. If the company is going to be built around an app it might make sense to have someone who knows apps as a partner.


you know someone to help us through the process until we go public.

Work to get the business started. It's fine if you're long term goals involve taking a company public, but there's no reason to start making real plans for that or seeking a consultant to help you. You're putting the cart before the horse. Get the business started first. You have years before the possibility of taking your company public will exist.

[Owen]

I think we would need to know a little something about the app before anyone guess at whether investors will be interested. I don't think anyone (outside of family and friends) will give you money just because you have an app. It depends on what the app does and whether or not investors think the company will grow enough for them to get a return on their investment.

Don't worry about your age. People invest in companies run by young people. People invest in companies because they think the return on their investment will be worth the risk of investing. I think your maturity will count more than your age.

One question I'd ask is do you really need someone to invest in your company? Can your company make money without investment? Aside from hiring programmers what do you need the money for? Have you thought of brining a programmer on board into the company. If the company is going to be built around an app it might make sense to have someone who knows apps as a partner.



Work to get the business started. It's fine if you're long term goals involve taking a company public, but there's no reason to start making real plans for that or seeking a consultant to help you. You're putting the cart before the horse. Get the business started first. You have years before the possibility of taking your company public will exist.

I just would like someone with a lot of business experience who would be willing to be a phone call or an email away for some advice like a mentor.

Also, we have to pay for server costs (dedicated so $300+ monthly), programming, Apple Developer Licenses, patent attorneys, trademarks, copyrights, registration fees, designers (to make it look pretty), and some more costs.

[Harold Mansfield]

I just would like someone with a lot of business experience who would be willing to be a phone call or an email away for some advice like a mentor.

Also, we have to pay for server costs (dedicated so $300+ monthly), programming, Apple Developer Licenses, patent attorneys, trademarks, copyrights, registration fees, designers (to make it look pretty), and some more costs.


You're all minors, or at least in your teens. Don't you have parents? Don't any of your parents or relatives have any resources or business acumen that they are willing to help you with?

I would think most parents of 15 year olds would want to be involved to make sure you don't get taken advantage of. Also, in most states it's against the law to enter into a legal agreement with a minor without parental consent. At 15, no one can sign a contract with you alone. You need legal guardianship or representation.

[Owen]

Your all minors, or at least in your teens. Don't you have parents? Don't any of your parents or relatives have any resources or business acumen that they are willing to help you with?

My parents are incredibly strict and stubborn, read some of my old posts and you'll see what I mean. I don't have much family either, only my uncle but he fixes cars. No one in my family does any business. I haven't met anyone that wants to help us, mostly because they don't take anything I'm doing seriously.

[Harold Mansfield]

My parents are incredibly strict and stubborn, read some of my old posts and you'll see what I mean. I don't have much family either, only my uncle but he fixes cars. No one in my family does any business. I haven't met anyone that wants to help us, mostly because they don't take anything I'm doing seriously.
What about the other guys parents? A teacher?

You're going to need someone to watch after your interests. It cannot be avoided. As a minor you cannot enter into legal agreements on your own.

[Owen]

What about the other guys parents? A teacher?

You're going to need someone to watch after your interests. It cannot be avoided. As a minor you cannot enter into legal agreements on your own.

My driver's ed teacher actually was very interested in it...

[Owen]

What about the other guys parents? A teacher?

You're going to need someone to watch after your interests. It cannot be avoided. As a minor you cannot enter into legal agreements on your own.

He read my text message and I got no response, guessing he wasn't THAT interested.

[bgallegos]

He read my text message and I got no response, guessing he wasn't THAT interested.

You might like to try crowdfunding for this project, such as registering on Kickstarter.com. That can raise a good amount of money for you. You will probably need an adult to help you with the process, but it wouldn't be of any risk to them and shouldn't take all that much time. The money raised from crowdfunding is basically free or you can offer investors free use of the app as a perk...

One thing I can say from experience is that EquityNet did not work for me to get startup capital. They charged a steep monthly fee and did nothing for me really.

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