I took my eCommerce/Bidding platform idea to TechStars Startup Weekend and ended up winning first place. We won everything from legal formation services, SEO package, Design package (branding), free hosting, and access to a co-working space.
Upon winning we were told, by staying in San Antonio to launch this company we HAVE funding. We met TONS of VC's as well as CEO's of excellent companies all throughout the state of Texas who came to see the event. They all had great things to say and are willing to help out where they can. As far as the judges of the event, we had zero negative feedback. The common feedback was that our pricing needed micro pivots because the pricing models we put into our slides were not high enough (even thought the model showed a profit margins being above 500M/yr)
What I am wondering is:
1. After formation has been completed and we have shown profit from our low-tech manual beta test (which will be started this Saturday and continue for the next 2 weeks) we will need to go for series A funding. How does this work?
Since we are such a large profit margin company, I don't wish to give away a huge amount of equity for such a low amount of money (5-10mil). This company has a parent umbrella corp due to the fact that the model applies to every industry (in which we plan on branching out to each) and will disrupt the market for each and every one.
Do we only take funding for the initial company?
Will VC's want to get in on the parent corp instead? If so, that is worth SOOO much more than the single corp we won the competition with.
I appreciate the fact I can come on here and ask real questions to real people. Any feedback on the matter would be greatly appreciated.
PS. Those of who have heard me asking about my other company FoodRoll and our API, we also got offers this weekend for an acquisition!!!