Duncan Hill

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• What's the best way to start a tech startup if you live outside the U.S?

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    Just do it. Find ways to generate revenue early and bootstrap if there is no local investment ecosystem. If you are building something great, there are likely local angles or VC’s that will back you if you are getting good traction.

• How much value does a company gain if any with IP patent vs. a solid business model?

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    If you have patentable IP, get the patents. In my experience, patents have little value to a tightly funded startup who doesn’t have the funds to litigate, but they often do to acquirers, and may boost your value.

• How can someone get a $5000 loan to start a business when the banks won't do it? I'm in bc Canada

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    If you’re trying to start a tech business, checkout the next cohort of GrowLab http://www.growlab.ca/

• Are there any websites to find investors, willing to invest in a start-up?

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    http://angel.co/

• What do you have to do if you want to be the next Google? Is there still room for another one?

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    History suggests there is always room for another one – and always will be. I suspect you’ll need a healthy dose of genius, hustle, dogged determination, and luck.

• What is the ROI on a process patent? We have an eLearning start-up with a unique approach to language acquisition that is potentially patentable. I have heard everything from, "A patent is about as useful as an MBA in a life raft" to "You will be much more appealing to investors with some IP protection". In short, our budget is stretched to the limits and the effort and cost of pursuing a patent would hurt badly. Does it help our overall position?

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    Talk to Anthony DeFazekas at Miller Thompson. They are great patent lawyers in Toronto.

• My startup needs a minimum $3M to make a significant ground floor entry into its industry. How should that $3M be valued in equity as a function of PMV. How do Angels and VCs really view PMVs.

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    Private market investment is still driven by supply/demand. How much equity you have to give up to raise $3M will be determined by you having options. If you have no options, you will likely give up more than if you have the ability to walk away. If the investor really wants into your company and you are willing to walk away, you give away less.

• What is the best way to launch a social commerce site in Canada?

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    Just do it.

• How do I get a VC from the US interested in my New Zealand based company?

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    Crike mate, tough one. It is hard enough for Canadian companies right next door. Demonstrate great traction in a market and a plan to replicate it in others. And be prepared to go to the US – and/or move there. If you know Nat Torkington, talk to him. He’s a Kiwi that has done some great things in the Valley.

• I have the domain knowledge but no technical background to implement a internet start-up/computer application idea. I have a tech cofounder in mind. What risks are involved? Do I need to set up things legally right from the beginning? What kind of agreements should i address with a partner? ie 5%, 10%, 50% ownership. How do i protect the idea? Any resources out there? thanks alot

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    I think you should get things squared away legally with your founders right out of the gate. Talk through what happens if things go well, and if things don’t. What happens if someone wants to leave? What happens if you want to get rid of them. What happens to their equity. Consider reverse vesting structures for equity grants. How much you have to give depends on how much you value the person. I’ve seen everything from 5% through 50% for a tech cofounder. There are only 2 way sto protect the idea that I know of: patents which may be difficult for an internet startup; and just getting out there and getting a good headstart. If you are in Toronto, check out MaRs, in Waterloo check out Communitech.