Dad asking me opinion on website...

**takeiteezzy** · 08-07-2008 09:53 AM

Being the techy of the house, my dad comes to me whenever he has problems with anything technology related. So one of his friend's friends started a website and is asking him for an investment, 600k for 5 % or 1.2 mil for 10%. He's basically just asking me a yes no question. Invest or not. I can't decide because I'm not into social networks so I come here for your help.

The site is mEgo dot com and has a company profile at mEgo Company Profile

This is pretty urgent as new shares being offered may raise the price. Thanks guys.

**jasaunders** · 08-07-2008 11:05 AM

First of all, the issuing of new shares will almost certainly not raise the price. In an investment seed round, shares are almost always offered to investors at the same price and with the same terms.

Secondly, no one is going to be able to make an investment decision based on just a company profile. Unless you were to see all the details of the business, it is absurd to think someone is going to be able to provide valuable advice with the information given.

**RLorenzen** · 08-07-2008 11:17 AM

This concerns me a bit. Just because he comes to you for tech advice doesn't mean you are qualifed to give advice on an investment even if it is tech related.

I just saw this comment from you in another thread:

Originally Posted by takeiteezzy

Me too, I need experience.

I'm not trying to personally attack you, so do not take offense, I'm suggesting that you tread carefully when giving this advice and perhaps consider not giving the advice at all. For your father's financial safety, maybe it would be better to seek advice from a professional investment advisor.

Also, as Jasaunders said, a little more info would help.

**takeiteezzy** · 08-07-2008 11:53 AM

I have the spreadsheets and finances of the company. PM me if you wanna take a look. Jasaunders, new shares won't raise the price, but a new valuation will. If he invested a month ago, for the same equity it would be half the price.

**volcom5799** · 08-07-2008 12:56 PM

600k investment?? wow that sounds pretty steep for such a cruddy novice site. how will the investment be used? for that much money and the company looking like a new startup, 10% is bullcrap. at least get 40%. How much is already invested in the company? that also will possibly have an effect on share price.

**andrewrichardgale** · 08-07-2008 03:54 PM

jesus christ give me 600 grand and ill gaureente we will become millionaires

**Aletheides** · 08-07-2008 03:59 PM

Is it just me or does it seem like these dot coms seem to ask so much for something that can be done for so little?

It might be his friend, but tell your dad to invest in what he knows about.

**chrispalko** · 08-07-2008 04:42 PM

If he has the $600k to invest, there are several other options that would bring a much larger ROI than a social networking site...

Originally Posted by andrewrichardgale

jesus christ give me 600 grand and ill gaureente we will become millionaires

+1

**jdoc** · 08-07-2008 06:16 PM

Originally Posted by takeiteezzy

I have the spreadsheets and finances of the company. PM me if you wanna take a look.

Finances are one thing, how about revenue? Do they have any? What's their business model? Judging by their page they have none (right now, I'm sure they've got some great detailed pie in the sky plan to convert eyeballs into dollars).

This is a web 2.0 who's had it's kick at the can - it's already been techcrunch featured, etc. last year. If it couldn't raise institutional money after that, then I would suspect that even in these 2.0 bubble times their monetization plans are weak. That would be why they're going the 'friends, family and fools' route.

I would walk slowly away, then run when they turn away.

**takeiteezzy** · 08-07-2008 10:00 PM

from their company finances spreadsheet, they already have raised approx 3mil in previous rounds, and they are trying to raise 4mil this round, of which SK Telecom of Korea wants to come in for 1.5mil. So, another 1mil to 1.4mil is available for investment. Pre-money valuation is 12mil.

Aletheides: I told my dad to invest in stuff he knows, citing the example of Buffet, but he still says he doesn't want to lose this opportunity if the company ever gets successful.

**takeiteezzy** · 08-12-2008 06:52 AM

bump bump bump

**nmacneil** · 08-13-2008 11:25 AM

The one wise thing you said was that you should invest in things you know. I think that is the answer to your questions right there. If he doesn't know about the technology and doesn't have the skills to help contribute to making the company successful, he probably shouldn't invest in it unless he has $600K that he doesn't mind losing.

**Aletheides** · 08-14-2008 02:34 AM

Originally Posted by takeiteezzy

Aletheides: I told my dad to invest in stuff he knows, citing the example of Buffet, but he still says he doesn't want to lose this opportunity if the company ever gets successful.

Greed doesn't make good investment decisions.

**shaboo** · 08-14-2008 05:25 AM

600k to 1,2mil, join me in ventures in Dubai we can bloody triple that in 6 months.

as for an actual comment on the mega thing, seriously i don't get the point

**takeiteezzy** · 08-15-2008 08:41 AM

dubai is a nice place. we went there for christmas. Stayed in the Emirates Palace Hotel in abu dabi. but its my dad's money so can't do anything about it