has anyone here ever tried to get funding for a project?

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Phoenixz

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Dec 8, 2008
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vc funding or fromm a private lender?

any experiences you want to share? tips?

ive written a business plan, an outline of what we want to accomplish

now i need to find someone to help pay for the extra labour and costs needed


ive never needed funding before, been on my own for about 6 years
this project is a bit bigger then my pockets though, the money is there to be made for sure though

just need to get an audience with
 


Tried before, had several entities offer funding, but never actually received any. Before moving forward, make sure to think about why you need funding, and where you hope it's going to take you.

Many VCs / angel investors will try and take you to the cleaners. After all, they're in this to make a buck too, plus they need to recoup for any failed investments they previously made. Remember, they don't give a fuck about your company, your idea, or making your dream realized. They simply want money. I ended up with some ridiculous offers. For example, I get a few hundred thousand in funding, but 100% ownership of the company goes to them, plus I have to relocate to Minneapolis, and work out of a cubicle / office on a fixed salary. Fuck that.

Make sure you're looking towards investors for the right reasons. There's a difference between an investment and "smart capital". Is it better off for you to start small & struggle, yet own 100% of the pie? Or do you believe it can grow to the point where only having a small portion of the pie is worth much more?

That, and make sure to look for investors WITHIN the industry you're looking to enter. Don't hit up a real estate investor if you want to start a software service, type of thing. Find someone within the same industry, because they can offer not only capital, but experience, skill, and other resources that may become invaluable to your success.
 
Kiopa_Matt said:
Tried before, had several entities offer funding, but never actually received any. Before moving forward, make sure to think about why you need funding, and where you hope it's going to take you.

Many VCs / angel investors will try and take you to the cleaners. After all, they're in this to make a buck too, plus they need to recoup for any failed investments they previously made. Remember, they don't give a fuck about your company, your idea, or making your dream realized. They simply want money. I ended up with some ridiculous offers. For example, I get a few hundred thousand in funding, but 100% ownership of the company goes to them, plus I have to relocate to Minneapolis, and work out of a cubicle / office on a fixed salary. Fuck that.

Make sure you're looking towards investors for the right reasons. There's a difference between an investment and "smart capital". Is it better off for you to start small & struggle, yet own 100% of the pie? Or do you believe it can grow to the point where only having a small portion of the pie is worth much more?
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Hey Matt, thanks for the input.
I certainly don't want to offer up 100% of anything. I could fund the build myself, and get the product ready for sale. It is the marketing part, i'm more worried about, i predict it will take a small warchest to really enter the marketplace and compete with the people there already.

Ideally i will find an angel investor willing to take up to 25%, i've predicted they will make their money back in 1-2 years.

it is all new to me, im used to doing what i want. The only person ive needed to impress to get a new idea going has been myself...lol
Anyway, i think the best way is to bring in someone who once shown what we are doing, and have done in the past, will share in the vision and readily jump into the project with both feet.
 
Phoenixz said:
yes the business plan is written correctly
unlike message board text which is less formal

thanks for your input
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It shouldn't be informal - what if I would have been your VC? Just a thought - and no I'm not a grammar nazi :)

Just saying you should always present yourself in the best possible light since you never know who is reading.
 
Keep it very simple, go to the core of application.

I think these templates will help you:

Code: 
http://library.toutapp.com/posts/how-i-raised-350k-as-a-solo-founder-using-these-4-email-templates
 
bootstrappinnnnnnnnnn for the win

If you're trying to start an online business, do everything you can to bootstrap. Don't sell equity when you aren't making money yet.
 
stmadeveloper said:
It shouldn't be informal - what if I would have been your VC? Just a thought - and no I'm not a grammar nazi :)

Just saying you should always present yourself in the best possible light since you never know who is reading.
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You are right of course, however i enjoy the nuances that come through on chat boards when people use "weblish". Also, being a mathematician, i'm willfully lazy about things that i don't consider important. Although, you are correct, when talking about getting money from people, maybe i could use a few of these ,.' :)
 
I have successfully raised funding in the past using a business plan, and I'm currently in the process of doing the same again now for a new and bigger project.

Key important factors in your business plan AND in all communication with potential investors are:
- Get all your numbers as straight as possible. Don't overestimate OR underestimate your projections.
- Stay clear of language that may (or may not) be vague to an outsider. Use laymans terms as much as possible, while at the same time keeping it professional.
- Don't overly try to convince someone how smart you are.
- Make sure you are asking for the right amount - and appropriate equity. Again - too much or too little might sway possible investors the wrong way. What is your company worth (or WILL it be worth in 4 years?). What is a fair share and why?
- Be prepared ahead to ask all and any questions.

@Flash4Ever; Good post, thanks for sharing. ;)
 
dchuk said:
Don't sell equity when you aren't making money yet.
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It's quite the opposite with fund raising.
VC's will fund your project/idea and your team (even 1 guy-at-home) skills.
They don't care if you are making money with your plan.
They fund only something what a market want.

ImagesAndWords said:
I have successfully raised funding in the past using a business plan, and I'm currently in the process of doing the same again now for a new and bigger project.


@Flash4Ever; Good post, thanks for sharing. ;)
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Same here. Good experience with a past project (mobile game).
The times are good again even if VC's are much smarter than 6 years ago.

P.S.: all the best to your country in these days, I have a few but true friends there.
 
I've pitched via venture capitalism style and it seriously is about who you know. Everyone says that these days but we would have never been able to pitch or even meet with prospective funding entities if it wasn't for some semi-close connection. It can be either personally or professionally but there are far too many entrepreneurs trying to gain funding or even some sort of green light in terms of direction or progress.

Different for every situation but I've been a part of a pitch and part of the audience for a pitch and each were different in every sense of the word. The one I prepared for and was part of was extremely informal, through the course of a meal, joking, etc. The second was the opposite - board room, power point, the works. May not help you with an actual in to someone, but thought I would post this.
 
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