How to raise a startup capital?

by jpibanez

Posted: 13 years ago 12 replies

OFF TOPIC

Hi!

I've been wanting to develop a Program which I think would really sell well online. I've been doing some research and I firmly know that the need for this program is growing steadily and the competitors for this program are offering low-end solutions/offers.

I really have no time to develop this because of my day job and I've been trying to find investors. I've tried 2 websites:

1. Venture Giant ( UK Angel Investors and Entrepreneurs - Angel Investment network for Business Funding, Raising Business Finance or Venture Capital - Venture Giant )

- The problem with venture giant is they take a lot of time to review your proposal/s and it would cost money (which I honestly don't have) for me to make contact with an interested investor.

2. Angel Capital Market ( Angel Investors + Entrepreneurs = AngelCapitalMarket.com )
- Investors are either not logging in or not reading their messages.

I'm really excited to develop this product and make a business out of it. But I'm short on resources, I've already came up with a plan on how to develop it as a business.

So now I'm asking if anyone has an idea or know where to get some funding for a project. I've tried kickstarter.com by the way. It got approved when I sent it as an opensource project. But I thought why give it away when I can make more if I sell it. Even if I shared profits with the investors, I'd still make a killing with this if I sell it.

Again, anyone knows where to get some startup capital?

John Durham 13 years ago

I gues no one answered.... because everyone here is pretty much about "grow your own"... investors later will not be worth your trouble. The first cash injection is nice, but the lifetime of accountability isnt.

The best thing to do is launch a campaign that makes some money, maybe sell an offline website or two...

You can do it... I've had investors... the money doesnt last, but the pain in the ass never goes away!

Easy enough, if you are convinced you have what it takes to turn a profit for someone, to do it yourself!

Hope this helps.

Ps. We have all had that thought, and many of us have been down that road... the best way is just to start from where you are, believe me.

ask yourself "What can I leverage that I already have"?
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jpibanez 13 years ago

Hi John, thanks for the great advice! Surely, there's something that I can do to raise a good starting capital. I just have to find out and take action.
- Thanks
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- John Durham 13 years ago
  
  Originally Posted by jpibanez
  
  Hi John, thanks for the great advice! Surely, there's something that I can do to raise a good starting capital. I just have to find out and take action.
  
  Just flip a couiple of offline sites! You can make a few thousand bucks! Either way good luck! Looks like you have a good clear idea of what you want to do!
  
  Thanks
  
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- Tashi Mortier 13 years ago
  
  I would also recommend that you go and raise the startup capital yourself. That's what I am doing right now.
  
  What you could also do is think about which services that you can provide and which things you still need to get done. Then maybe you can find a partner that develops your project together with you.
  
  Think about it, you will need other people sooner or later (support, times of illness/holidays...). Just a kind suggestion
  
  Thanks
  
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  Ryan Johnson 13 years ago
  
  This seems to be a big hurdle for everyone starting out. Great ideas, but no way to execute them. I have the same problem, and it hurts to see the same idea show up out on the market and do well.
  I don't think finding investors would be hard, but like someone else said, I don't know if the troubles that come with them are worth it.
  
  Thanks
  
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  Tashi Mortier 13 years ago
  
  I haven't tried to find investors. What I did was doing research on HOW to find them. Here in Germany you have to do so many things that are just a waste of time and there is no way to guarantee that you will even get the money. Also you don't only have to pay them back the money (plus interest) they also want a share of your earnings.
  
  So I just thought: "Hey, $ 100.000 isn't THAT much. You can raise it on your own and use it. Having no one who looks over your shoulder all the time is worth it."
  
  Thanks
  
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John Durham

13 years ago

I've had investors before... usually thats a thought you are thinking when you are feeling desperate.... when you come to your senses it usually goes away. We've all been there.

Thanks
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jpibanez

13 years ago

Originally Posted by John Durham

I've had investors before... usually thats a thought you are thinking when you are feeling desperate.... when you come to your senses it usually goes away. We've all been there.

That is true John. This excitement and passion is leading me into desperation. I really want to do this badly. Money isn't my #1 motivation. It's building stuff that would really work. Seeing something work for somebody really skyrockets my level of happiness. But of course money comes along the way.

Thanks

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totalpakage 13 years ago

hey jp, i was interested in finding out more info on kickstarter, what do u think of them
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- jpibanez 13 years ago
  
  Originally Posted by totalpakage
  
  hey jp, i was interested in finding out more info on kickstarter, what do u think of them
  
  Hi there.
  
  I really think kickstarter is a very good way to fund creativity. However, if you wish to go on the business side and making money. I really don't think that's the place to make money.
  
  Thanks
  
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  Ride_the_lightning Banned 13 years ago
  
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  totalpakage 13 years ago
  
  @ lighting u just might be right
  
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  QuickSurf 13 years ago
  
  I've raised capital for companies when I had my finance and consulting biz, didn't deal much with start-ups more so mid-size/companies already operating but needed an injection for a new product or procedure or acquisition they were expanding etc. For start-ups, personally I would avoid family... everyone always says go to your fam first, I wouldn't b/c if it doesn't work out and let's say it was a nice chunk of money that went "poof"... gonna burn a lot of bridges there lol.
  
  In the U.S. there's local angel groups you can look up, not sure about other countries... venture cap is extremely tough, on avg a Venture firm will get 10-100+ submissions per week and maybe only take on 2-3 of the deals in a whole YEAR. And theirs cost involved for due diligence and you generally will have to put on a nice show for them (and they have been known to deny and then steal the idea for themselves and maybe change it a bit and not much you can do as they have very deep pockets to fight with) and usually the contracts are done up to where they have control and can sell the company or merge it without you having much say in it. Angels, I'm just leary of scammers....the second I got an ify vibe from someone I wouldn't bother with them.
  
  Also 99% of the firms are niche specific, you have to find the ones that would even be interested in your stuff...for example you'll see firms that are niched into tech, or health, acquisitions etc.
  
  Just do due diligence/research in your area... if it's a big product/or huge potential (I'm talking millions in revenue), you may want to reach out and search the U.S.
  
  Something you can see if your area has, is an incubator program, usually a group like SCORE and others that have other entrepreneurs that will guide you and help get the business started etc. Theres a local office near me.
  SCORE | Small business mentoring and training | SCORE
  
  Thanks
  
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How to raise a startup capital?

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