Where Have All the Venture Capitalists Gone? 90
artlu asks: "I have a great idea for a dotcom company, and I just started to execute the initial stages of my business plan. I developed the initial website, gained a user base, and am about to incorporate in Florida. Now I need to find a venture capitalist! However, every capitalist I approach is fearful of dotcoms. I ask the Slashdot community: How do I find a post-bubble dotcom investor?"
Maybe it is you? (Score:5, Insightful)
In your case, there is little that is unique, and you don't seem to have any USP's (unique selling points), anything that I can't already get elsewhere, as part of a larger service, and most importantly, readily visible revenue stream.
I'm sorry to be blunt and harsh mate, but the VC's are still there, they are just talking to people with a better plan......
Re:Maybe it is you? (Score:5, Informative)
What sort of capital are we talking? If it's around $30k or under, you should have no problem funding it yorself (I can easily raise that sort of capital myself through personal savings and personal loans; as a business one can easily receive more from the banks, not counting any business development grants available to you).
If we're talking more, how are you going to pay them back? What are your revenue streams - looks like just ad-driven to me. So as a VC hoping to have made significant profit on my investment in 5 years, what is your forecast? How much do you expect to get from advertising per user? How many users are you going to attract? How many years will it take for this revenue stream to generate $200k profit, to make it worth their while.
As with the parent, my intent is not to be negative, but as someone who is very much involved in the issues of keeping a business afloat, I think you need to come up with viable answers to these questions in the form of a solid business plan before you go asking for VC. And you have to truly belive that the business plan is feasible, else even if you did get VC you'd be opening yourself up for a miserable time.
A more direct answer to your question, though, would be to attend events in the ICT sector. You'll find there are many agencies, all in a close-knit community, with the goal to support ICT companies. They will host events which are of no interest, but you can network, network, network. Once that's done, finding VCs will be no problem whatsoever, as everyone in the community will know everyone else.
Oh, by the way - many people will be displeased that their information is being shared with a tracking company. At the least it looks very unprofessional. You're hosting PHP pages, bite the bullet and write the tracking code yourself.
Re:Maybe it is you? (Score:3, Funny)
No kidding! You even tried Baystar? They will apparently invest in anything.
Try doing the following experiment (Score:3, Funny)
While standing in the front of your venture capitalist, turn 180 degrees so that he can see your back. So, put your pants (and underpants down) and try to touch your feet with the tips of your fingers. You can slightly open your legs to make it easy for your to touch your feet. Now wait for your new "venture" to start and enjoy. Good luck.
24 hours! (Score:1)
Re:24 hours! (Score:1)
just wait ... (Score:4, Funny)
The Future of Internet Investing is Coming.
See your own business plan (Score:3, Insightful)
Privacy Statement (Score:4, Insightful)
The vultures have flown... (Score:2, Insightful)
However, the stupider ones are out of business, and the smarter ones are being a lot more careful in their dealings now.
Or alternatively (Score:1)
Non-extradition countries?
Re:Or alternatively (Score:1)
If I were a venture capitalist... (Score:5, Informative)
Realize that in order to succeed you will lose - a lot. I lost $11,000 when I started out, but I think of that money as an education. Also, do not even attempt to day trade with less then $40,000 as you will need Day Trading Buying power. PAPER TRADE.
How much did you end up making? If you did/are doing well, why are you changing professions (trader to dotcomer)? If not, why would I trust my money with you? (especially since you're losing your money in such a foolish manner--day trading)
Re:If I were a venture capitalist... (Score:3, Funny)
This isn't the eighties you know. The banks have computers as well now. Day trading was a fancy get rich quick scheme that reduced the real value of a lot of shares. If you want to make money patent online day trading or something. You can do it regardless of any prior art here [uspto.gov]
Absent (Score:1)
Most VC:s in the seed/early financing business (which you seem to be looking for) are still licking their wounds after the IT and biotech bubbles - and won't go back there for a long time until there is a really really really good and obvious opportunity. Which, at this point in time, reduces the chances to almost zero, since everything that resembles "dotc
wow, this is too easy (Score:5, Funny)
2 -
3 - Profit!
Re:wow, this is too easy (Score:1)
yep, revenue model (Score:4, Funny)
Simple.... (Score:2, Funny)
Steve.
(BTW Its a joke comment. If I don't say this I will probably end up with a shed load of replies saying that a
Re:Simple.... (Score:2)
Me too! (Score:3, Informative)
And he actually managed to get a plug on Slashdot. This is just slightly pathetic.
Congrats. (Score:1, Offtopic)
What a feat.
Maybe there's a reason why they're scared. (Score:5, Insightful)
Forget the MBA.... (Score:5, Informative)
As for the something different, I'm hundred per cent behind you on that one. If you don't have a product differentiator, you are dead - there is only so much market and somebody bigger always has economies of scale.
Re:Forget the MBA.... (Score:2)
Re:Forget the MBA.... (Score:2)
Re:Forget the MBA.... (Score:2)
Re:Forget the MBA.... (Score:2)
One of my previous jobs was establishing high-growth/high-tech markets. Many of the potential isuers that we talked to (remember, we are talking issuers, not startups or even mezzanine-stage companies) had established successful businesses. Those with Angels were getting quite good advice via active particip
Re:Forget the MBA.... (Score:2)
Does a marketing specialist need an MBA? It depends on the company, I guess. It depends on the person. Depends on the market they work in.
Re:Maybe there's a reason why they're scared. (Score:3, Funny)
Stop calling it that. (Score:4, Insightful)
Re:Stop calling it that. (Score:3, Interesting)
Calling your business a dotcom will likely have them burning you at the stake before you can use the word "leverage".
Beware, this guy has an IQ Over 160 (Score:2)
Re:Beware, this guy has an IQ Over 160 (Score:2, Informative)
(Emphasis mine)
Perhaps this is why the VC's are running scared?
Re:Beware, this guy has an IQ Over 160 (Score:2)
I would, but my eyesight isn't good enough to read the text. :-/
Re:Beware, this guy has an IQ Over 160 (Score:2)
2. You should probably have said "Beware, this guy has 'An IQ Over 160' written on his website". Publishing something on the internet does not make it fact.
3. Yes I have had a bad day and am taking it out on somebody else.
Re:Beware, this guy has an IQ Over 160 (Score:3, Funny)
Re:Beware, this guy has an IQ Over 160 (Score:1, Insightful)
Re:Beware, this guy has an IQ Over 160 (Score:2)
Re:Beware, this guy has an IQ Over 160 (Score:2)
OK, but all I got was: Not Found. Seems Art's gone missing. Quick, somebody call the FBI and report a missing person!
Use the cache (Score:2)
Re:Beware, this guy has an IQ Over 160 (Score:2)
Damn, he pulled the About page... (Score:2)
Just priceless. Someone, please get a cluestick quickly and help this poor chap.
I really would like to now what the business part is he is talking about.
WARNING - Ads on 'About' page NSFW! (Score:2)
Hahaha. (Score:5, Funny)
Parent post is too true to be funny. (Score:2)
If I were a Venture Capitalist, and somebody came to me looking for VC with something as poorly thought out as this, his ass would hit the middle of the parking lot by at least the second bounce.
Ask Slashdot: Where can I get free exposure? (Score:3, Funny)
Where have all the VCs gone? (Score:4, Funny)
Long time passing
Where have all the VCs gone?
Long time ago
Where have all the VCs gone?
Dotcoms fleeced them every one
When will they ever learn?
When will they ever learn?
Re:Where have all the VCs gone? (Score:1)
If you REALLY want to get a kick, rent "Revolution OS" from Netflix and watch RMS sing it. That is a great movie, also. Its got all the big open source giants and even describes the beginnings of the term "open source".
Chris
RMS: Don't quit your day job. (Score:1)
I couldn't hit XMMS's stop button fast enough!
Re:Where have all the VCs gone? (Score:2)
Re:Where have all the VCs gone? (Score:1)
> when I hear Pete Seeger sing it
So true. I've got a Pete Seeger greatest hits album... "We Shall Overcome" is especially poignant. Classic stuff.
Re:Where have all the VCs gone? (Score:3, Funny)
Where have all the VCs gone?
No more funding
Where have all the VCs gone?
Funding all gone
Where have all the VCs gone?
No more lovely Aeron chairs
It seems that they have learned
It seems that they have learned
This is a joke, right? (Score:5, Funny)
If I were a VC I would bill you for wasting my time. There are plenty of VCs out there dying to invest their money as it has a shelf life that is coming due, but no one is stepping up with a good idea. And yours is not a good idea. A good idea had a $5-20 Billion market. A good idea can capture at least 5% of that market. A good idea fills a void in the market. A good idea has high switching costs for the end user, is hard to duplicate, is expensive to get into, has large margins, has the ability to block competitors through things like patents, leverages an already installed base, and makes you wet your pants it is so good. If you don't believe in your idea to invest your own money, money you may not have, put together a team, do the research, etc. - then why would a VC invest?
I, for one, can't believe this got posted. Oh, wait, yes I can. Perhaps my next submission will be an Ask Slashdot: "How much will you pay for this turd."
Re:This is a joke, right? (Score:2)
From an editorial perspective, generally one doesn't care so much about "good" as "interesting". And although the question was, frankly, stupid, the ensuing game of pile-on-the-retard is fun for both participants and watchers. And the other gazillion half-wit potential entrepreneurs out there have a great opportunity to learn how to critique business ideas, including their own.
Re:This is a joke, right? (Score:1)
You need angels, not VCs (Score:4, Insightful)
Before the VCs squeezed them out of the market, there were "angel investors" - individuals who knew their specific industries very well, had made their own money previously and were willing to take a flyer on a new company in their industry. Angels typically require much less documentation etc. to invest.
Re:You need angels, not VCs (Score:1)
This is not professional enough. (Score:4, Insightful)
As for the copywriting: It's just unprofessional. You have neither a "corporate" reassuring voice (something desirable in this context) nor a friendly, personal one. It's just a mix and match of faux seriousness and half hearted attempts at humor. Needs tightening.
From what I see, I wouldn't bet much on the business plan. Then, there's what everybody else here is saying: You don't have a unique product. No market differentiator, no apparent viable business model, no real professional experience (no, "tried and failed" doesn't cut it when requesting capital for a business providing services for the area in which you failed).
I'm sorry, but I think the problem with your proposal is that it's not good enough. Good luck improving it.
Re:This is not professional enough. (Score:2)
You are overly harsh, in fact, I almost think you're a bit of a negative a**hole who simply cut down everything with a bit of criticism without giving some advice on the viable options.
His site has deficiencies, but given that he's prototype-early-stage, that's not a problem, I've certainly seen worse. As for "doesn't have a unique product": offering a unique online service for group share schemes could well be it - can you name his competitors, since you've "obviously" done some research to support your c
Re:This is not professional enough. (Score:2)
I'm not. I know what I'm talking about. I did remark on the flaws of design and copywriting, and a few specific points on why I think they don't work. I'm not going to write a 30 page report offering improvements that could be made, if that's what you're implying.
His site has deficiencies, but given that he's prototype-ea
How to make money? (Score:2)
What are you selling? How much will you charge? How many people will buy?
Those are your questions when you have good answers then you will be of interest to VCs not before.
Re:How to make money? (Score:2)
More important for this stage: How will your investors make money? Any time you take other people's money to fund a business, you should be thinking about how you'll pay them back with adequate returns. If you can't answer that, you shouldn't be asking for their money in the first place.
A Few Rebuts if I May (Score:3, Insightful)
Second, my about page on artlu.net. A) yes, it is stupid and childish. B) I have not updated it in nearly 4 years. C) If you are judging me by that page, I have nothing to say. I took it offline, but im sure you can google or internet history it.
Third, I am working on the privacy policy as well - I don't remember which post mentioned that, so thank you.
Finally, I appreciate all of the constructive comments and the emails I have received of interest. They are definitely leading me to change a few things in the Business plan.
Re:A Few Rebuts if I May (Score:2)
Well, this would probably be why any VCs that you've approached have appeared uninterested. Without an actual, written business plan (including stuff like an analysis of the competitive landscape, realistic capital requirements and revenue projections, etc.) as a starting point you won't be able to interest anybody in investing.
Once you've done this part of the work, have a site tha
Re:A Few Rebuts if I May (Score:2)
Re:A Few Rebuts if I May (Score:2)
Okay, then I guess I'm a bit confused, as your original post said: "[h]owever, every capitalist I approach is fearful of dotcoms," which I took to mean that you had approached VCs who then told you that they were fearful of dotcoms.
From what I've been hearing (entirely second-hand, mind you), there is venture capital out there. And while VCs do require a high level of confidence that a business has potential before they'll invest, dotcoms with good ideas
You may (Score:1)
Private pages have the inherent design feature of allowing people pre-judgement. That is the whole idea behind online publishing: presenting oneself to the public.
You approaching slashdot was a great testrun, regarding what I have just said.
I think you got a lot of great feedback. The unsupportive being even of grea
Re:You may (Score:2)
As I stated earlier, this website [groupshares.com] is just serving to create a
Not bad. (Score:4, Funny)
Well. (Score:1)
Your site looks like a SEC investigation waiting to happen.
Where will the money go? (Score:1)
Honestly, I think you'd be in danger of blowing any VC funding on more day-trading "experience" and this time it would all be documented in your blog. Not a good thing, from a legal defense perspective.
my advice as an "average investor" (Score:1)
When I buy a stock this is what I ask:
1) how do they make money?
2) how do they make MORE money each year?
3) how will they be making more money 50 years from now?
I'm having trouble coming up with answers for your site. Plus the whole day-trader angle bothers me.. is that the same philosophy you use when running a business? Maybe you will be able to sucker some VC, but
Where to find VC's (Score:2)
Try the National Venture Capital Association [nvca.org] or the Western Association of Venture Capitalists [wavc.net]. Both make their membership directories available.
They've gone.... (Score:1)
Tahya al-Moqawama al-Iraqiya! (Score:1)
American pigs will pay... soon!