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Need opinion on web20 venture
Posted by: Alexandru Stanciu on 7/23/2008 6:59:26 AM
Need an Expert:
$250k - $500k 		Category:
Information Technology (IT) 		Website :
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Bucharest, All, Romania 		Viewed : 141 times
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Description:
Hi guys. I'm Alex. I own a startup comp. in Romania called StarTech - http://startech.ro. We're just 2 guys at StarTech. For about 1 year, we are struggling to keep the business running by bootstrapping. What we do is mobile web and we're very good at it. We've done 'not bad' so far with the business also, having few big clients, some of the biggest media companies in Romania.

Now we have a couple of very nice web 2.0 ideas and we thought about raising some capital for these projects. We've pitched a big Romanian media comp, which is one of our clients, and they agreed on starting a new company with us and finance/promote our projects. We've done the business plan, the budgets, projections and everything else. Now we are about to sign a partnership agreement. And here comes my problem :)

They want 70% of the new comp, buy options (they can buy our shares whenever they want) and drag-along right. Basically they want full control of the company.

So what I'm asking for is your opinion on this matter. I'm obviously not happy with these conditions. And for you to get the big picture, here are some figures out of the business plan: required funding is 200k/year (mainly wages for us and 2 other guys and rent), break even 17 months, 500k profit after 3.5years. It's EURO, not USD. Main revenue source is advertising on sites.

Any opinion/suggestion would be most welcome! I can give more details if anyone is interested...

Thanks a lot!

http://linkedin.com/alexandru.stanciu
http://twitter.com/ducu

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