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How take investment in startup without any revenue?

Salman Siddiqui (Proprietor) (24 Points)

18 March 2015

Hello expert CA's

i have query regarding my startup comapny, i have stated an Internet Portal with a authorised & paid up capital of 5lac with 50000 share of Rs. 10 each there are currently there are 5 shareholders & current revenue of few thousand rupee, recently i got an offer from one of my friend for an investment 1 crore in return of 20% of the company. please guide me how can i issue share to get that investment into the company which will be spend for employing more marketing executives & promotional activities.

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Lisha Singh (B.Com) (21 Points)
Replied 21 March 2015

The Excellent way of the equity market investing is to do your own research, don’t believe blindly on what they say on different business channels, most of them is bad recommendation and will land you into trouble, Remember that it doesn’t matter how wide your research is you will still make mistakes, but don't get disheartened, have patience.

Buy a goose that lays golden eggs?

The Equity market historically averages, Always invest in the long term, a 10% return.

You are asking for twice as much. Good idea but not realistic.

And "yield", what it "pays" as in revenue is generally much less. A more realistic expectation of what you can yearly draw on investments is 5 percent or less. Seems at retirement investing for income investing advice.

And the market is more volatile recently. That means barring dividends the market returned NOTHING over in gains. But that will average out for the good when the market is constant.

The Excellent news is that presently with prices so low there are a few high yield stocks out there unlike what we have seen in 10 years.

Good luck, but dial back your expectations to the reality.

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