Should i Approach Venture Capitalist or apply for Busines loans

hello everyone,
Me and my partner have a very unique concept for Mobile software which can give us about $50,000/Mo earning. The Concept is very unique and need about investment of $20,000 in total including software development and marketing.

Do you think i should approach VC or should i apply for Business loans ??

Any ideas ?

Thanx
Kay

 

Buisness loan. The amount needed is small and venture capital will want to have control over your business. No need to have more people involved get a loan.

 

Hmm But if my project does not get success, do i have to pay the money back to VC ??

 

$20k is pretty small for VC.

I would look at some of the angel investor groups like Keiretsu Forum or Band of Angels.

Another option I've seen people use to seek small funding is http://www.prosper.com/

 

VC won't give you anything less than millions, 99% of the time.

 

Take a loan
or wait few months and making some savings.

And if you product is great, you can also "outsource" your marketing to integrators or resellers.

 

Hello,
Maybe you could find out an Angel Capital because 20K is nothing for a VC, and earn 50K is nothing for a VC...

Here you can learn more about this term, (if you dont know about)

http://en.wikipedia.org/wiki/Angel_investor

Good luck!

Jakomo

 

hahah venture capitalists.

Look, they aren't going to just give you a loan and ask that you pay it back, plus a few bucks, when you're good an ready.

If you don't have executive experience and a solid education, you're likely to get pushed off. And a VC will want your soul for the money. You minds well just sell the idea on ebay and move on.

For $20,000 you either want to A) save / get 2nd job(s), B) ask friends/family, C) use credit cards / sig loans, or D) try for a SBA / Bank loan.

Banks are fairly tight and will look at your ability to run a business.

But perhaps they are less conservative in your country.

 

Either use credit cards or get a bank loan if you have good credit or collateral. Realistically $20k is a very small amount in business terms and by funding it yourself, you'll maintain 100% ownership. VC's will take 95% and leave you nothing.

 

thanx everyone for your suggestions
May be in USA or UK $20K is a small amount.. but in India, its thrice the avg. savings of a man living in india
anyways i'll lookout for more options..

 

For Series A, they will probably give out a minimum of 500K, for sites that are worth it. Small investments may be good, but are too hard to manage and oversee.
Besides, Series A funding probably will take away about 30% share of your business.

 

This is a very interesting thread.

 

Lets see i had talk with one investor, he's asking for 2% royalty for life time..
do you guys think its fair deal ?? he's investing $15K in my business