[Matic]

I am putting together a sales presentation to a personal investor and I am wondering what I should expect from an investor for a web startup.

How much of a profit percentage should the investor get?

If something goes wrong, am I liable to pay the investor his money back or does he take all of the risk?

[MsNadi]

I have an article (I'll try and find the blog link) about investor sales presentations. The thing you should spend the least time on is your business model, which includes what you plan to give the investor. At this point you're not trying to convince him/her of the huge profits they will make...but of the viability of your idea, and YOUR ability to carry it out.

You should be focusing more on why your product is good, why people will want it - a little bit on the market conditions and customers, more on marketing and sales strategy.

Convince the guy why he wants YOU and then worry about the logistics of the give and take once his mind is made up.

One of the reasons they cited: typically business models are wrong. What you don't want to happen is your investor sees your business model and what you plan to offer him and its not to his/her liking, and that now is the focus of their attention - not what you're trying to do but the fact that you said 20% instead of 30%.

[Matic]

Thanks for the information, but I still need to know typically what is offered. I don't plan on throwing it out there, but I know that if this guy starts negotiating something, i need to know what is generally given for investors.

Also, I need to know the second question which is do I have to pay investors back if things go bad. Do they take all the financial risk? My time is money so development would also be wasted as well.

[ahmedmashhood]

there are lotsa factors to consider. usually profestional investor (VC) take 25-40% of your company, not just profit. Keeping in mind that they are betting their money on you.

Also it all depends who is the investor, vc, an angel, or your uncle. If you are going to VC track make your BPlan is fool proof, you have great team and you have been there before. and you know everything about the business, venture finanace and legalities.

Hope it helps, msg me privately (my id @ gmail.com) if you would like to discuss it in detail.

All the best.