Yes! Scored funding for web development!

[leftfielder]

About me: People have always accused me of being crazy and weird but I see myself as the normal minority. I feel we all owe it to ourselves to learn the discipline needed to follow our dreams. Not trends but dreams. The ones that keep you awake at night. The one that keep evolving into a bigger and better concept and make you feel brilliant.

Yeah, I've got one of those. I never sleep anymore. I'm always doing research, playing with hybrid concept, taking what has been tried in the past but failed because of community anonymity, poor marketing, and poor customer service. It's saddens me that a large behemoth like ebay that went from 0-60 in such a short time, are idling at 20 because they lost site of the definition of loyalty.

Some people are profit hungry, some people are fame hungry and some people are hungry to grow their network. I'm hungry for simplicity and practicality. I'm hungry to grow my network. A few grand is a small price to pay to bringing convenience to someones life.

Enough about me. Let's talk money. There are many ways to come up with money to do the things you really want to do but I'll tell you:

• what my options were

• what options I chose

• what I would do in the future

Option 1.

Patriot Express--- In short, if you are a u.s. military veteran with a discharge no less than General under honorable conditions or an active duty spouse you may qualify

I chose not to go this route because the govt doesn't like to back anything intangible or controversial like energy programs, pollution programs, homeless programs etc. I wouldn't expect them to fund an online venture.

This option is pretty much useless to me. But having the information handy to share with others who qualify, puts it to good use.


Option 2.

Sell items and services to raise money-- I try to keep in mind that things like clothes, computers, furniture have very little resale value. It would have taken me at least 6 months of selling and saving while still maintaining my current lifestyle.

Although we naturally do this a few time a year this would never work for me because I didn't want it to. I had to factor in hourly or commission or school hours vs the effort put into selling a $60 domain or a $200 bedroom set.

If you can sell air or actually have a product people demand, like iPhones, it would work for us both.


Option 3.

Ask venture capitalists---If your dream is that big then this may work for you. They supply with fund and are mostly a silent partner. You don't have to worry about paying the bills, just make them some money.

I would never choose this option. For one I am paranoid. I don't want some tool taking my idea because he has the money to start it up and do it better than me.

Again, I would keep this option handy because it works for different type of investors like ones that invest in education or housing.


Option 4.

Ask friends and family---If you have the balls and they love, care and respect your opinion, this may be the way to go. I wrote out a business plan, and what it takes to be profitable. My favorite uncle said maybe. My grandmother who knows nothing about the internet, said yes. Does she love me more? No. She just believes in me more.

I chose this option because I showed her I am risking my own money also. Honestly, my money is for development, her money is for offline marketing. I also decided to cut costs buy nearly 40% buy customizing an already developed script or alternatively, go open source.

Depending on who you know this could be the most hassle free way of funding your dream. Because I worked to save the money, I'm more aware of where it's going and why.

Thanks for taking a look,

Em

 

[Coop]

There are some venture capitalists that won't steal your dream away. I'd be willing to help if you need anything and can show a solid business plan.

 

[Brian D]

Thanks, does anyone know any venture capitalists who do smaller stuff like around 10,000 not the million you hear about on TV.

Thanks

Brian

 

[DJ-Sound]

Thanks, does anyone know any venture capitalists who do smaller stuff like around 10,000 not the million you hear about on TV.

Thanks

Brian

Hello Brian,

Unfortunately no, I've successfully raised funding through regulation d offerings on two occasions for business ventures and I didn't come across one vc that would invest less than 100k. Anything less and it's not worth their time, even if you do something like 400% roi in a year it is pennies to them.

I suggest not getting other people involved if you can, get loans, save, work odd jobs, hire people on equity etc.. If not, then family members and friends like you mentioned you can contact.

Posting on VC boards like gobignetwork.com and private loan requests like zopa.com prosper.com are good. I would avoid business savy low-ball investors if you can, they will fight you for control and be to active.

The general rule of thumb: "If you can't make money without money, you can't make money with money" This is proven true almost everyday, and (smart) investors have learned this.

So especially in this day and age you need to show a lot of proof your worthy of investment. Start a business online that requires no capital, get customers, get income, get real proof that you have a clue... and trust me this will give you more cards in vc negotiations.

 

[leftfielder]

The general rule of thumb: "If you can't make money without money, you can't make money with money" This is proven true almost everyday, and (smart) investors have learned this.

So especially in this day and age you need to show a lot of proof your worthy of investment. Start a business online that requires no capital, get customers, get income, get real proof that you have a clue... and trust me this will give you more cards in vc negotiations.

Excellent advice DJ. Keeping those in mind. I spoke to an older friend, who is a serial entrepreneur of sorts, after I found out the awesome news. We discussed his ups and downs, highlights and disappointments along the way. He also advised me continue doing it the way I started, you know, making personal loans to get business started because VCs are ruthless. They just care about the money and how soon they can get it. Plus I feel great saving money and using open source products. It gives others free advertising in a way where the ball is in their court.

He told me it's profitable for them because if they have just $1 million invested in 10 small businesses. Most of them are going to fail, a few will flounder, and 1 or 2 investments will recoup their entire million back.

VCs HATE the few that flounder or is just breaking even. They think those kinds of businesses are a waste of time and would rather them fail so they could spend their energy elsewhere. Vicious.