How the startup is funded

My friend’s dad, Bob, owns a small company in Dallas. He works out of a nicely decorated warehouse/office. Inside this office there are some empty offices and cubicles. Inside the warehouse is warehouse space, friendly employees, forklifts and other equipment, and an elevated loading dock.

I’ve found that if I conduct business at this location, and I don’t get in Bob’s way, I can generally get away with it. Bob doesn’t stop me, he doesn’t help me either, but he doesn’t stop me.  So I set up shop in Bob’s building.

It is possible to buy copper transformers for a price in the US, and to sell them for a higher price in either China or Hong Kong. This was my first truly international business, scrap recycling, I’ve been doing it for three years and it is the way I fund Xingergy. Finding, shipping, dismantling and especially importing into China, scrap is difficult, complicated, drawn out, and risky. But I do it because if I don’t, my Xingergy company will fail, I will fail.

 

 

A few months ago I wrote Xingergy a check, an “investment” from Seth to Xingergy of $24,000. Aren’t I supposed to receive stock for this? This cash should cover the prototype, which I estimate will cost about $10,000, plus our living and travel expenses for the next few months.  Once we have the prototype up and running this is supposed to convince the HKSTP and investors that we know what we’re doing…….

Since I’ve returned from Hong Kong, stopped by DC and NYC, and am visiting Texas, I’ve been working on generating cash for the company. I won’t be doing very much “Xingergy” work until I’ve got enough cash in the bank and return to Hong Kong.

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