Lesson 16 – Angel Investors Companies of Your Kind
Google was initially founded in August 1998 with a contribution of $100,000 from Andy Bechtolsheim, co-founder of the sun-micro system, the money was given before Google was incorporated, later on Google was incorporated in September 1998. Sun-micro system was also another tech-style company that made the contribution to google for seed funding within that time Google received money from angel investors in 1998 as well as the amazon co-founder.
Jeff Bezos, and others, after some additional small investments through the end of 1998 to the early 1999, a new $25 million round of trundling was announced on June 7, 1999, with major investors including the venture capital firms Kleiner Perkins and Sequoia Capital.
Mark Cuban quotes “Anybody that borrows money for the new business as a startup is a moron”. Now, ever wondering why he said that tech hubs venture capitalist starts with paper, sweat, and sell? Basically, because shares of the companies to partners investors are sometimes offered (non-cumulative stock). This clause which is included in the agreement is a structure that doesn’t pay investors back in some cases until the company become profitable or goes public with an Initial Public Offering (I.P.O.), this drives the founder’s the company out of debt obligations via bank loans, also, sometimes terms growth stock.