Thing-O-Matic Fundraising

[kiba]

indeed - now that we're all on the same page, the bargaining can commence.

Also, I'm not very keen on buying a share of a company, knowing that the initial founder will own 50% of it.

Because this gives him a bit too much power, imo.

Say, for instance, that too a small amount is raised, and that the machine cannot be bought.

If there is too small amount is raised, I'll simply buy the rest of the shares and own majority of the company and the business will start much later.

After all, my previous ventures will be bootstrapping this venture and the profit will continue to pour in until I purchase all the unbrought shares.

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[grondilu]

If there is too small amount is raised, I'll simply buy the rest of the shares and own majority of the company and the business will start much later.

You can't buy something unless one agrees to sell.

If what you're suggesting is the only solution, then you are the only buyer.  In that case, you can buy these shares at almost zero, since those shares don't worth anything unless you buy them.  This puts you in a huge dominant position (many sellers, only one buyer).

This would be exactly similar to the option 4 previously described.

[kiba]

If there is too small amount is raised, I'll simply buy the rest of the shares and own majority of the company and the business will start much later.

If what you're suggesting is the only solution, then you are the only buyer.  In that case, you can buy these shares at almost zero, since those shares don't worth anything unless you buy them.  This puts you in a huge dominant position (many sellers, only one buyer).

It doesn't accomplish the purpose of raising enough money to buy the machinery.

[grondilu]

It doesn't accomplish the purpose of raising enough money to buy the machinery.

These kind of things happen.  It's not even rare.  I don't know the english expression, but basically it should be something like  "IPO failure" ("échec de l'introduction au capital", in french).

[ribuck]

Guys, it's only a small business, don't try to make it so complicated that it can never get started.

Kiba, just set out clearly how the business is going to work, then people can decide whether or not to invest. Some kind of plan like this:

1. I "sell" 50 shares in the profits of the business. Each share is BTC 300 and entitles the purchaser to 1% of the profits.
2. If I don't sell 50 shares within 90 days, I return everyone's BTC and the project ends.
3. If I sell 50 shares within 90 days, I stop selling shares.
4. I use the BTC to buy the Thing-o-matic and other expenses needed to start production, plus the initial stock of raw materials.
5. I set up a website so that people can upload their shape-files and pay with BTC to receive the produced "things".
6. The shareholders and I will have a weekly meeting, but I will make the final decisions about how the business is run.
7. If the shareholders don't think the business is working out satisfactorily, they can vote to close it down.
8. If I don't think the business is working out satisfactorily, I can close it down.
9. If the business is closed, all of the equipment will be sold and the funds distributed to the shareholders according to their shareholding.

[grondilu]

Guys, it's only a small business, don't try to make it so complicated that it can never get started.

Kiba, just set out clearly how the business is going to work, then people can decide whether or not to invest. Some kind of plan like this:

1. I "sell" 50 shares in the profits of the business. Each share is BTC 300 and entitles the purchaser to 1% of the profits.
2. If I don't sell 50 shares within 90 days, I return everyone's BTC and the project ends.
3. If I sell 50 shares within 90 days, I stop selling shares.
4. I use the BTC to buy the Thing-o-matic and other expenses needed to start production, plus the initial stock of raw materials.
5. I set up a website so that people can upload their shape-files and pay with BTC to receive the produced "things".
6. The shareholders and I will have a weekly meeting, but I will make the final decisions about how the business is run.
7. If the shareholders don't think the business is working out satisfactorily, they can vote to close it down.
8. If I don't think the business is working out satisfactorily, I can close it down.
9. If the business is closed, all of the equipment will be sold and the funds distributed to the shareholders according to their shareholding.

Looks fine.  I'm interested in buying, now.

[kiba]

Guys, it's only a small business, don't try to make it so complicated that it can never get started.

Kiba, just set out clearly how the business is going to work, then people can decide whether or not to invest. Some kind of plan like this:

1. I "sell" 50 shares in the profits of the business. Each share is BTC 300 and entitles the purchaser to 1% of the profits.
2. If I don't sell 50 shares within 90 days, I return everyone's BTC and the project ends.
3. If I sell 50 shares within 90 days, I stop selling shares.
4. I use the BTC to buy the Thing-o-matic and other expenses needed to start production, plus the initial stock of raw materials.
5. I set up a website so that people can upload their shape-files and pay with BTC to receive the produced "things".
6. The shareholders and I will have a weekly meeting, but I will make the final decisions about how the business is run.
7. If the shareholders don't think the business is working out satisfactorily, they can vote to close it down.
8. If I don't think the business is working out satisfactorily, I can close it down.
9. If the business is closed, all of the equipment will be sold and the funds distributed to the shareholders according to their shareholding.

Looks fine.  I'm interested in buying, now.

I'll take that as a first draft.

[kiba]

For me to invest, I'd look for one more thing. I'd want the website to be substantially complete before investing to buy the machine.

Fair enough.