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Should i go for Venture Capital?

Discussion in 'General Business' started by weilies, Mar 23, 2008.

  1. #1
    Greeting,
    SEMrush
    I own a PPC Network, support system, management system, blog, all are ready but no traffic.

    And i am planning to come out a business plan to find some one to join venture. But the overall budget is about 1.3Million usd for 43 months and the ROI is around 70%

    Is it possible for me to find someoneto fund my project?
     
    weilies, Mar 23, 2008 IP
    SEMrush
  2. wisdomtool

    wisdomtool Moderator Staff

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    #2
    It would be difficult, especially when there is no traffic. First of all venture capitalist would be looking more towards projects that have a chance of being listed on the stock exchange, so that it would be easier for them to sell out.

    You may have everything ready but without the traffic, no one knows will it be successful in the first place. Even with the traffic, you need to consider what is the type of traffic, is it focused? Do you have details of the surfers? How intimate are the details? Can you use it for customer profiling etc? Only when it is determined that with the traffic they can monetize it, then will venture capital comes in.

    They typically will not come in during such a moment as yours, you will need to work harder to get more traffic as well as a more popular and unique site before they venture into your business to provide extra seed money for you to grow.
     
    wisdomtool, Mar 23, 2008 IP
  3. weilies

    weilies Peon

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    #3
    What bout for new starters?
    What if i can provide a detail reporting including adverting, reporting

    My previous lost 100k from the investors
     
    weilies, Mar 23, 2008 IP
  4. aditya_sfs

    aditya_sfs Peon

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    #4
    Venture Capitalists come into play only when the idea has been tested on small scale and worked well OR in other words has the possibility to scale up. They help you to expand. So you better go this way - take some small sized funding of 50 - 100K from an Angel Investor and get started doing the things. Start growing steadily. After a certain point of time, you won't find it too difficult to get a VC fund your venture. Problems come when everything is on paper and nothing in practical. You need to show some results atleast to convince them ...
     
    aditya_sfs, Mar 23, 2008 IP
    poseidon likes this.
  5. whooped

    whooped Peon

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    #5
    The best path, as mentioned, would be to pare your expenses down and start operating in beta. If your idea picked off, you would have some additional revenue to fund growth and if it was working out well, you could pick up funds from an angel investor.

    VC's generally go for new technologies and radical improvements on existing technologies. A PPC network is probably neither. Especially with the economy headed for a recession in the US, funding will be tight and advertising budgets will be lowered.

    I bet you could find a way to cut down expenses by 50% or even more or at least begin operating. Please do send me a PM with any specifics on your idea that you can offer, without going into too much detail, and I might be able to point you somewhere.
     
    whooped, Mar 23, 2008 IP
  6. thrillseekerhass

    thrillseekerhass Peon

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    #6
    most of the responses you have had are pretty good already.
    I just want to add that in a lot of books I have read, venture capital should be your last resort because VC's tend to want high percentages, lots of control and lots of guarantees, so they are like vultures.
    look at other capital raising options first. lots of resources if you google capital raising.
    also 70% is that p.a. or overall. if overall, that's pretty low.
    Thrillseekerhass
     
    thrillseekerhass, Mar 24, 2008 IP
  7. weilies

    weilies Peon

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    #7
    what's p.a.?
    70% is the net profit, which all expenses deducted, it's like invest $100M, and get back $170M
     
    weilies, Mar 24, 2008 IP
  8. tke71709

    tke71709 Peon

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    #8
    Honestly?

    No.

    You have no traffic, no revenue, no track record, a shotgun approach to your business and nothing but a vague business plan.
     
    tke71709, Mar 24, 2008 IP