I have a great idea for a product, and was thinking about trying to find a partner / someone to invest in it - partially for cash and partially to help market and design it. Has anyone tried to get venture capital before? I don't want to really advertise the idea because I'm afraid of people stealing it - but who in hell would agree to pay to finance an idea without hearing it? Is there a way to find local investors? I think that might be better than finding people online.
Hello, How are you? Are you looking gor millons? If you are looking for millons you need a venture capital, but you need of course a business plan. If you are looking for 100K or 50K or 200K you need an angel capital, a venture capiltal will give you money if you need more of 1 millon. My 2 cents Jakomo
Really depends on the amount, and you need literally to take a step back and get somone to pitch your own idea to you, and ask how you sound to yourself. I read busines plans for a living and I hate to say it 90 % of the time make business decisions not on the plan but on the individual and your profile In other words I read their bank statements and do not pay a lot of attention to the plan. In my experience the gutter is littered with good ideas from people who cannot execute them. You could hand the chemical formula for ocld fusion to 10 million people before it would arrive in the lap of somone who could devolop it I look for patterns, and decisions are based on this. Rarely the decision is based on the plan or colateral. Out of 100 lends averaging $50 K over the last three months three have based on the business plan alone. The ideas were so strong we would have bought the company had they failed. One of those has failed already! I got it wrong. The rest were lent money as they showed ability to actually tick the right boxes and ability to pay
There are a few stages in the VC game - Before you can even get to being able to approach VC firms, you are going to have to have to have either have a very strong reputation OR have a proof of concept prototype (read my blog for info on what this is) Then after all this, the VC, will not only look at the idea and profitability, but also YOU the team. Not only to prove that you have a great idea, but will also have to prove why you over any joe off the street can pull such a thing off. if you need specific direction PM me as I know lots about this part of the game.
Exactly right. You need to be a kaptain of a ship, with the right crew, who know where he is going and what to do if you hit an iceberg, which incidentally is also a type of lettace
Hi, Whether it is Angel, VC, or even family and friends, you will be expected to put a lot of your own money and sweat equity, and have lots to show, before anyone (who is experienced) will give you any money. I am sure, you would ask the same of anyone who came to you for money. So think in terms, what would it take before I gave anyone any money, and you will better understand what you will need to do. Rich
Yes, many times over looked. A funder (what ever name you want to give them) will in the vast majority of cases expect the owner of the idea to put up a fair financial stake too - why should they be the only one carrying the financial risk? Likewise there are a lot of small elements that can make a big difference, most new business owners dont draw any salary from the company for months (if not years) and then it starts off at the bare minimum. A funder is going to give you money simply so that you can double your current salary. As others have said, a business case/ plan may get you a meeting but ultimately you as the potential owner of the business is also a major element - business is a unique skill and just because you are an amazing programmer or sales person or... doesnt mean you will be successful running a business in the same space because it takes additional skill types. If you look at senior management within a large organisation the majority have track records of "management" much more than technical knowledge of their current operating sphere. People wont invest on a promise of an idea that is great and so you are going to have to let the world know what the idea is. Whilst many here will recommend using a non-disclosure agreement (NDA) they really arent worth the paper they are writen on, legally speaking, and so you should investigate other protection methods such as patent (depending on what your idea is) before you tell anyone else. NDAs are a good scare tactic however and so should be used in conjunction with anything else.
I was actually looking for more like 5k, I figured I'd write the application, and someone else would help me market it, and be there to bounce ideas off of. I think I'm going to just go this alone though - the program could be half done before I talked someone into investing, and then if it isn't as successful as I think it's going to be, no one would be upset about it. Thanks for all the advice - I'll be sure to come back if I decide to pursue it.
Try v.c or go on dragons den I inherited my company which is over 100 years old,ive overseen minor growth but with the british economy in trouble my largest customers aint buying. The bottom line is-You need something unique,something which sells,something which the consumer will part there money with. V.C.s very rarely if not ever go invests in a product thats around or which is a cost squeezer.
Dragons Den!!!!! DO you realize the woman works for the other two after she lost her business?? They are a closing team/