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    13 Replies Latest reply on Jun 13, 2008 12:20 PM by temsik.5998

    Raising Capital for Start-Up

    temsik.5998 Wayfarer
      I have a website I have launched that has a very large revenue potential. I need to find a partner/institution willing to fund the sales and marketing of the site. With the upside potential, I am very concerned about the financial aspect and finding a reputable organization to help. Reason being, as the site grows in popularity, the funding party will actually become a part of the story. When it comes to money, finding someone you can trust is very tricky.
      What do I do?
        • Re: Raising Capital for Start-Up
          LUCKIEST Guide
          *Raising Capital for Start-Up, Welcome and Yes *finding someone you can trust is very tricky.

          Where are you?? How much Start Up are you looking for??How long do you need the funds for?? and
          When and How will you pay me back??

          You build trust and friendship slowly. Can I see a Business Plan??

          LUCKIEST
            • Re: Raising Capital for Start-Up
              temsik.5998 Wayfarer
              I am based out of Phoenix. I am looking for 100m, of which, approximately 85% would be used for achieving ranking on search engines, E-mail marketing, and direct mail. The remainder would be used for product development. We have an entire line of products we plan to private label.

              We will generate revenue through advertisers and product sales.

              I have an informal business plan I can send now or within 7-10 days I can present you with a more professional one.

              As far as repayment is concerned, I would expect repayment to occur within five years.
                • Re: Raising Capital for Start-Up
                  Bridge Navigator
                  Who/what are your target demographics?

                  Are you looking for debt or equity?

                  What ROI are you offering?

                  I know a PE group out of PHX that like to invest in AZ based tech companies.

                  Be prepaerd to potentially give up a board seat but get expert management advice in return.

                  Greg
                    • Re: Raising Capital for Start-Up
                      temsik.5998 Wayfarer

                      Hi Greg

                      My target demographic is men starting over after any of lifes curveballs such as divorce, bankruptcy, losing job/busines, health issues or just plain midlife crisis. The umbrella theme covering all topics is depression in men and the stigma associated with the need for acknowledging and getting help.

                      I have an entire line of products that we plan to private label. We are going to create a brand with our logo that has actual meaning to it. It is a logo that will become known as a symbol of strength.to any that wear or use our products. We will create a true fraternity for men. One they can come to for acceptance, guidance and knowledge as they take that ever important first step forward.

                       


                      I am willing to talk about both, an equity or debt position.
                        • Re: Raising Capital for Start-Up
                          Bridge Navigator

                          O.K. I'm confused again, you said you are going to create a "Brand" but also private label? That seems contradictory. How will your strong brand help with the private label efforts?

                           


                          Perhaps I'm confused with the terminology. Usually "private label" means a manufacturer who makes products but puts other companies names on it.

                           

                          Are you going to create a strong branded company OR a private label company? Trying to do both out of the gate is a huge undertaking.
                    • Re: Raising Capital for Start-Up
                      teamtwi Wayfarer
                      LUCKY..

                      can you send me your personal email address? I am in So Calif and want to see how you work for arranging funding for angel investment. You seem to answer everyone's posting both froma business side and a personal side, so I dont know if you <personally> invest, or does your company.

                      send to retiredyoungster@yahoo.com (its a motivational name)

                      Mark
                    • Re: Raising Capital for Start-Up
                      Tracker

                      As concerned as you are about finding a reputable organization to work with; they are going to be equally concerned about you and your venture. If you are looking for capital you are going to need an investor-ready business plan that covers the things that funding sources and investors will want to know about your venture. The plan should also include 3 years of financial projections.

                      Do you have an investor-ready business plan prepared? If not, that should be one of the first things that you take care of.

                       


                      As for sources of capital for you: Banks are going to need to see your plan and will be looking at your creditworthiness and collateral. Venture capital firms for the most part now limit their investment interest to narrow niches of business; primarily those businesses past the start-up, R&D phase and currently generating revenue that have the capability to reach $100 Million in revenue within six years. Some Venture Capitalists could almost be termed "venture cannibalists" ... so sometimes even if you attract VC funding it could end up being a less than pleasant experience. There are hundreds, if not thousands, of VC firms and Angel Investors and groups out there. Just type in either phrase into Google and you will find plenty of sites to look at. You would want to find the one that seems closest to have interest or a track record of companies similar to yours. You will need to have a very professional business plan when you approach them since for many it will be the first thing they ask for. If its a plan you've put together your self; have an experienced professional look it over before you present to any investor prospects or funding sources. If this is a new experience for you, if possible, you should also speak with an experienced business professional to walk you through your business launch and the best way to approach sources of capital for your business.

                      Keep in mind that VC's fund only a small percentage of the deals they see. You may want to give some thoughts to looking at alternatives to VC funding. There are other ways out there that often are better for you than venture capital. Angel investors and other private equity sources might be worth exploring but it is tough to get their attention. First impressions are important in getting their attention; your business plan has to clearly show them your capabilities, the viability of the venture and the opportunity it presents.

                      I hope the above helps; good luck with your business launch.

                      Dennis Lowery
                      Adducent, inc.
                      • Re: Raising Capital for Start-Up
                        Bridge Navigator
                        If you have already launched the site, what is the web address?
                        • Re: Raising Capital for Start-Up
                          Bridge Navigator
                          Dear Cory,

                          How do you plan to monetize your site?

                          I understand it has great personal relevance to you, and I am sure it has help you as an emotional outlet but, make sure you have a plan in place to generate cash.

                          It's not about how great an idea you think it is, its about "will anybody pay for it".

                          Best of luck
                            • Re: Raising Capital for Start-Up
                              temsik.5998 Wayfarer
                              I plan on having multiple revenue streams through paid advertisers, opt in forums, and an online/print catalogs that will carry the theme throughout. We are also forming strategic alliances with non-profits where I can sell products with there help and donate a percentage of the sale to the non-profit.