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    26 Replies Latest reply on Jan 26, 2009 1:23 PM by Kjlawrence63

    Angel Investors

    Kjlawrence63 Adventurer
      Can anyone tell me if they've had any luck in finding an investor through this site at all? We have been in contact with many funding companies to try and find the capital we need to finance our start-up business www.luxurysfinest.com but they all seem to want you to pay them a fee first. How does that make any sense? The reason you need money in the first place is so that you can get your business off the ground. It is so frustrating.

      Can anyone help me please. Do you know where the best place to find an investor would be?

      We are looking for around $4.5 Million and we have our business plan, financial appendix and company bios ready for anyone that is interested in funding our company. This will turn into something big if we can just get the funding.

      I look forward to hearing your replies

      Kathryn
        • Re: Angel Investors
          LUCKIEST Guide
          Angel Investors

          18 posts and Who are you?? Where are you??

          Tell me more. $4.5 Mill for a Start Up??

          LUCKIEST
          • Re: Angel Investors
            intechspecial Ranger
            I would like to hear more about you as well.

            Please reply with detailed information if possible.

            Thanks!
              • Re: Angel Investors
                Kjlawrence63 Adventurer
                This is our Company Description.

                Luxury's Finest is the first and only exclusive online auction company in America to provide a unique family of auctions designed specifically with luxury in mind. We are the only company to offer clients the ability to buy and sell their finest luxury's to a higher concentrated online market. We offer a swift and seamless transaction on every purchase with unsurpassed customer service.

                This is the playground of the powerful. This is Luxury's Finest.
              • Re: Angel Investors
                Cartierwealth Wayfarer
                Hello Angel I have a really unique program for High Net Worth Clients. You can go to my website at www.cartierwealth.typepad.com and/or email me at Cartierwealth@aol.com. Good Luck ~Michelle
                • Re: Angel Investors
                  Lighthouse24 Ranger
                  Kathryn, you answered other member's questions, but no one seems to have answered the ones you asked as yet.

                  Any luck in finding an investor through this site? I haven't personally tried, but I doubt it -- just because I haven't seen any pitches here that made me think, "Wow I wish I had the capital to get in on that!"

                  +Does it make sense to pay a fee in advance to someone who will try to find funding for your business+? In general, no -- but if you really have a business plan you believe in, yet lack the experience and contacts to raise the seed capital, then you may have no choice but to hire or partner with someone who does (but as you seem to have determined, most firms that are posting offers in these forums to secure funding for your business don't qualify in that regard -- in fact, many aren't even legitimate).

                  Where would be the best place to find an angel investor? The $4.5 million you are seeking is a lot in the angel investor world. My thought is that you'll probably need to approach an angel group or a VC firm, and your best bets will likely be (a) groups that historically have invested in start-ups for your type of business (so you'd need to research that), and (b) groups that are close to home (this could be a very promising option if your business launch would guarantee new jobs and generate local economic growth that's not dependent on tourism, motion picture/TV, or housing -- i.e., the industries that have driven your local growth and that may suffer the most in a slumping economy).

                  Other people's experience may differ, but in mine, almost every business founder who sought and the actually obtained start-up capital was only two or three degrees of separation from the money at the outset. In other words, the founder knew someone who knew someone with the money or a connection to the money. So I would exhaust EVERY potential contact and connection I had before I went out into the world at-large trolling for seed money.

                  Hope that helps a little. Best wishes.
                  1 of 1 people found this helpful
                    • Re: Angel Investors
                      Kjlawrence63 Adventurer
                      I wish you had the capital too Lighthouse24, it would certainly be a good investment for someone. What Investors should be doing is putting more money into main street rather than wall street which would help the economy grow.

                      Anyway this is what we have found through our research:

                      Competitive Comparison
                      A) We offer a lower transaction rate that our competitors cannot touch. Because our competitors have already set their operating cost and set their charges as standard, for them to change would mean a damaging cut into profit margins.

                      Competition cost example's:

                      Wigix
                      For items $1,000.00+ Wigix charge the seller $19.50, plus 1% of the portion above $100. Their Reserve Fee, Buy It Now Fee, Listing Upgrades Fees, Additional Picture fee, Hosting Fees and Seller Tools are all included, however when you assess the $1,000.00+ and work out the fee, you see that it will cost the individual $29.50 just to list their list item! Our fee, $20.00, an impressive $9.50 lower. Not happy with just charging the seller, Wigix then hit the buyer with a $1.50 charge just for making a purchase from their website! Luxury's Finest believe that low costs and great consumer ethics will excel our business way ahead of our competitors.

                      eBay
                      For items $1,000.00+ eBay charge the seller $36.31 plus 1.5%. Their Reserve Fees are between $2 and $50, Buy It Now Fees are $.05 - $.25, Listing Upgrade Fees and Additional Picture fees work out at $.10 - $80.00 per upgrade, Hosting Fees are $.15 - $1.00 and Seller Tools Fee - $25.00. When you add this up, just to list one item, eBay charge a massive $51.31. Our fee?.......just $20.00! A stagering $31.31 cheeper!

                      At Luxury's Finest - we throw away the petty charges and offer just one charge, 2%. As our website is only for merchandise that is $1,000.00+, we will be receiving $20.00 per $1,000.00. If we have 1,000 users selling the minimum $1,000.00, equaling $1,000,000.00 passing through our site, giving us a profitable $20,000.00. There are 9.5 million millionaires out there, if we get just 5,000 users (out of 9.5 million) that is only .0526% of our target demographic. We are looking to shoot our way past that with a major advertising campaign.

                      Our marketing has to 'HIT HARD' and 'FAST' before competition has time to adjust.

                      If there are any serious investors out there that would like to invest in our company please contact me kjlawrence63@yahoo.com

                      I look forward to hearing from you.

                      Kathryn
                        • Re: Angel Investors
                          DomainDiva Ranger
                          Just a thought here....are you familiar with bluefly.com? Luxury items for sale at discounts. Maybe they would be interested in a partnership with you to help fund your site and take a percentage.

                          Partnerships for start ups can be great I have partnered with two other firms to get our product going.
                          1 of 1 people found this helpful
                            • Re: Angel Investors
                              Kjlawrence63 Adventurer
                              I have been to the site once before but that is a very good idea..I will certainly consider it as we have not yet had any luck with finding a angel investor to help us fund our website. Thank you DomainDiva, your help is appreciated. :-)

                              What is your product if you don't mind me asking and how long did it take you to get your business going?
                              We can chat in a private email if you would prefer.
                                • Re: Angel Investors
                                  DomainDiva Ranger
                                  Please check my profile. My biz info is there.

                                  To explain in a nutshell: (hatip IWrite...)

                                  Our application retains aircraft maintenance reocrds. If you have seen tho Whoopie Goldberg movie "the Associate', you may remember that Whoopies character had a 'box' of papers and notes. One day she came to the office and could not find 'the box'. Her assistant showed her how she had put 'the contents of the box' on the computer.

                                  All Whoopis character could say was: "YOU PUT THE BOX ON THE COMPUTER??"

                                  That is what we have done literally. Virtual BOX with information AND visual compliance data on the computer. Our website address is on the profile as well. Our application is all visually managed and we have NO search technology. Yet everything is right there available. Sign in and two clicks to your data.

                                  As bad as business is for everyone...Bluefly needs to move merchandise, trust me they already have a huge markup on this stuff as well, even though are are selling at a discount.

                                  GO FOR IT.
                                    • Re: Angel Investors
                                      Kjlawrence63 Adventurer
                                      Thank you DomainDiva,

                                      We will definitely get that started. That is a great idea. I just need to get in contact with all our users so that they can re-list all their items. I know they want our company to work especially a couple from Ukraine who have their own Art Gallery.

                                      www.mryess.org - They have around 40-50 sculptures and paintings which they want to sell and they're creating more.

                                      Our business plan has also been altered so hopefully we will have more luck.

                                      Kathryn
                              • Re: Angel Investors
                                Kjlawrence63 Adventurer
                                Thank you for your help and advice Lighthouse24, it is appreciated.

                                I have also come across a new website if you care to take a look. This will benefit many new business owners who are trying to find a start-up capital. I have registered our company in the hope to find an investor. I hope this will help out many more of you on this site.

                                www.fundability.com

                                30 days free trial $24.99 a month there after. The site helps new business owners and investors come together without having to pay the enormous up from fees that other companies charge just to find an investor for you.

                                Hope this helps.

                                Kathryn
                                  • Re: Angel Investors
                                    macklamm Wayfarer
                                    make sure you also sign an NDA with the other before you proceed with anything or give anyone your business plan - no matter who they are

                                    investor angels are there but at the moment the credit crisis has stopped a lot of investment in new start ups

                                    your business is luxury goods? find out what the market is like now from competitors etc
                                    • Re: Angel Investors
                                      GrowthCurve Adventurer
                                      I think you're asking for way too much money for a start-up, and I don't see how you can possibly expect to be in business for this upcoming holiday season.

                                      You need to do a set of financial projections that show various milestones as you grow, indicating how much capital you need at each milestone to move on to the next.

                                      If you are still in the concept stage, then you are probably looking for money just to build the infrastructure to get started. Then you'll look for dollars to start marketing and actually generate revenue (proof of concept). Then you'll look for dollars to grow what you've started. And so on.

                                      You're not getting $4.5 million on Day One. And if you were, you'd be giving up 90+% of the company, as it's highly unlikely (oh, let's just call it impossible) that your valuation will be anywhere near, let alone higher than, $5 million.

                                      I'll be candid...I don't get this business. It's a discount eBay for luxury items? You don't think eBay couldn't just come in and pound you into oblivion? And do you really think that there are that many people willing to sell high priced items online? And buy them? Who buys something for $10,000 online sight unseen? I know it happens, but enough to make a business out of?

                                      Also, if you get 1,000 transactions at $20 each, that's $20,000 in revenue, not profit.
                                        • Re: Angel Investors
                                          Kjlawrence63 Adventurer
                                          Thank you for your input. We have everything set and ready for investment capital, this includes: business plan, milestones, projections, market analysis, etc.

                                          eBay = $6 million investment
                                          Wigix = $5.5 million investment

                                          We have a service in place that will hold transactions as a third party and wait till the Buyers are satisfied with the transaction. Once the Buyer has the item, the money is released. We are looking to protect our clients by putting in these safeguards. So no, it is not sight unseen.

                                          You don't get the business? Really?

                                          eBay can't touch what we have in place and there is no way that I am going to explain to you how on an open forum.

                                          Thank you for your comment anyway.

                                          BTW, Profit = Type-O.
                                            • Re: Angel Investors
                                              GrowthCurve Adventurer

                                              There's no way to put this without sounding arrogant about it, but you're comparing apples to oranges when you discuss your capital formation needs and compare them to eBay.

                                              eBay had already been in business for about two years when Benchmark put in the first $5 million venture capital investment in eBay. I'm willing to wager that the company already had customers, employees, and revenue -- proof of concept -- before the $5 million went in. I'm also willing to wager that there was already a good slug of capital in there from founders and angels. In other words, they didn't go from a business plan to getting $5 million overnight.

                                              Morever, you're discussing a one-in-a-million investment made in the frothy days of 1997, when getting venture capital was a whole lot easier than it is today.

                                              I appreciate and applaud your belief in your business, but I do think that you need to collaborate with someone on the capital formation part...someone who can bring some current market expertise on how these kinds of deals do -- and don't -- get done.

                                      • Re: Angel Investors
                                        NoBullFunding Scout
                                        I agree with Lighthouse. More small businesses are capitalized with funds from someone with whom the founders had a personal relationship than investors.

                                        I checked out your website. Is it correct that you want to be an EBay for rich people? Or is there more to it? I'd love you read your business plan if you care to share it.
                                        • Re: Angel Investors
                                          stingrayriley Newbie
                                          Kathryn

                                          Nope I have not, had many inquires but nothing solid yet. Then for the most part it is people worried over the market in loom of a possible recession. And not knowing if it worth risking their money in. I know for me I have a car rental venture I have been pushing for months and even has a website and when I see emails in my box for people looking to make reservations it is a hard thing to have to turn away revenue cause of no real investors.or invetor.

                                          Tho I did have a guy already in business looking now to buy a franchise of this company.

                                           

                                          Good luck in your search

                                          Happy Venture

                                          Tim Riley
                                          • Re: Angel Investors
                                            glory.to.God Newbie
                                            Have you found any investors for your idea?