New Business Idea Question?

**ruskoz** · 07-24-2007 12:55 PM

Hi, I have been working on a internet based based idea that I have come up with for about 5 months, it has the potential to be worth millions maybe billions in revenue. I will have to admit that its scope is large and very complex but Im convinced it is worth the effort. I will need to get large venture capital to hire as many as 10-20 skilled, technical, and professorial types. Development should take one year give or take a couple of months. I have spoken to 5 people about position in the start-up team and 4 are in as long as the proper incentives are in place (we know what that means...lol).

The problem lies in getting funding to get to the venture capital stage. I need about $30,000 to get all the legal, business plan, company structure, accounting, research, and etc. "I'm tapped out"! I want to put a outline of the business model together to approach smaller investors but to get this funding but have not been able to find any info on this type of funding on the internet. So if anyone has any info, thought, ideas on these please advise.

"No need to ask about the idea, unless you has something good to offer and are planning on signing NDA and other legal agreements".

**EthanK** · 07-24-2007 01:44 PM

All depends on your age/ credit score. If your 18 years old or 30 years old with horrible credit, kiss that idea good bye, unless you can fund the project through something like prosper.com. If your not 18 or don't have horrible credit, contact a local bank branch and approach them about business loans and learn what they have to offer.

Edit: Also think, if the plan fails, will you be able to pay back this 30,000?

**ruskoz** · 07-24-2007 01:51 PM

I'm over 40 yrs, excellent credit.

I want to get equity funding instead of debt funding.

**Kendra Jane Fashions** · 07-24-2007 01:56 PM

Originally Posted by ruskoz

I'm over 40 yrs, excellent credit.

I want to get equity funding instead of debt funding.

I've often heard a rule of thumb that VC's won't touch you unless you show a realistic expectation to hit $25 million in sales in something like 3 years. You'd also need to show the ability to gross at least 50%. And, of course, the typical rigors of VC, in which they would scrutinize every idea you have and make you show them where your product/service/idea fits an untapped market or fills a void.

**chriswick** · 07-24-2007 02:17 PM

Just out of curiosity how much do you need and is this a niche market or is it based of something that is already out there?

**Paint and Air Sportz** · 07-24-2007 02:21 PM

Originally Posted by EthanK

All depends on your age/ credit score. If your 18 years old or 30 years old with horrible credit, kiss that idea good bye, unless you can fund the project through something like prosper.com. If your not 18 or don't have horrible credit, contact a local bank branch and approach them about business loans and learn what they have to offer.

Edit: Also think, if the plan fails, will you be able to pay back this 30,000?

Your not that smart are you, venture capatalists/investors dont give a shit about credit score, they only care about whether you can make the venture profitable.

**ruskoz** · 07-24-2007 02:21 PM

Thank for the replies, but I'm not really worried about getting the big funding from venture capitalist right now. I'm trying to focuses on the pre-funding. This is the reason for my posting with a question.

As far as what VC are looking for, that depends on the potential reward and how solid the concept / idea is.

**ruskoz** · 07-24-2007 02:27 PM

Originally Posted by chriswick

Just out of curiosity how much do you need and is this a niche market or is it based of something that is already out there?

Both...but we need to define niche in the proper terms. By niche, I will say it is a very very large niche.

As far as something already out there...yes but not done right.

**EthanK** · 07-24-2007 04:00 PM

Originally Posted by Paint and Air Sportz

Your not that smart are you, venture capatalists/investors dont give a shit about credit score, they only care about whether you can make the venture profitable.

Glad you took a business class, but maybe it should have been grammar.

**jayk** · 07-28-2007 10:20 PM

Originally Posted by EthanK

All depends on your age/ credit score. If your 18 years old or 30 years old with horrible credit, kiss that idea good bye, unless you can fund the project through something like prosper.com. If your not 18 or don't have horrible credit, contact a local bank branch and approach them about business loans and learn what they have to offer.

Edit: Also think, if the plan fails, will you be able to pay back this 30,000?

i don't know what you're talking about my friend, credit has nothing to do with a business idea. when have you ever met a venture capitalist that asked for your credit score?

**wully00** · 07-28-2007 11:53 PM

No, but my bank sure as hell did. And my merchant account. And my supplier... Don't act like its not important.

**jackace** · 07-28-2007 11:56 PM

Look for an angel investor. Someone who specializes in your industry. If all you need is 30k, and your idea is as good as you say, finding a solid angel investor should be no problem. These are the types of businesses Angel investors love to work with. It doesn't cost them a large chunk of their investment money, but could potentially make them millions.

**Hooman** · 07-31-2007 03:00 AM

Originally Posted by jackace

Look for an angel investor. Someone who specializes in your industry. If all you need is 30k, and your idea is as good as you say, finding a solid angel investor should be no problem. These are the types of businesses Angel investors love to work with. It doesn't cost them a large chunk of their investment money, but could potentially make them millions.

Where and how do you find "angel investors"? Got any tips/articles?