For the time being I will continue to write about the start up company I have invested seed capital in as CB Stealth. It is too early to share too much information. Yesterday afternoon we had a presentation for a small group of potential investors that are business associates of mine. This was their second presentation. At the first meeting, I had not invested yet, although I was on the advisory board. It was a productive meeting, and we got to see the latest beta version of the software which is now online, but not for general consumption.

The best part about a meeting like this, even without any firm funding commitments, was simply having so many smart and dynamic people in one room; hearing their questions, suggestions and ideas. It was heady stuff, indeed, and much was accomplished.

Next month we go live so our offer to investors will change. As we move forward and the risks are reduced, the opportunity for investors is adjusted in kind. Think of the Henny Penny children's story (dating myself here...) - If you want to eat some of the cake you need to contribute to making the cake. But for now we were seeking seed money in the form of convertible notes that have a preferred return and very generous warrant coverage. The warrant coverage will be reduced in May and gradually phased out over the rest of the year. Important issues to consider in a start-up business are no different than those of a going concern.

• What is the strength of management?
• Can we create a deep moat around the products and services?
• How big is the market?
• Can we generate strong sustaining cash-flow?
• When do we expect to make a profit?
• Who Is the competition?
• How fast will we be able to scale up?
• Will we be able to attract the right talent to the team?
• What is the exit strategy?

I have been lobbying to stay away from Venture Capital money unless we are forced to take it. So far we are managing to advance the company without it. It will all depend on how fast our product is accepted in the market place and whether we can keep cash flow ahead of the demand, growth and need to scale up. I also think borrowing money is much, much cheaper than giving up part of the company. Stay tuned and I will continue to share this adventure from time to time.

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out his other posts for BloggingStocks here.