Question on Investors

[jsabol]

Has anyone actually put together a comprehensive List of Investors and People Looking for investments. Along with Grants and Small Business Loans. I have looked and find most of it is Garbled with those pay for the book crap, And pay to join a Site. But is there a list out there that is not gonna cost somone just to network and find an investor?

[akula]

erhhh...things don't work like that..
ok, what amount of money you looking for?
gimme a range and i'll give you the lists etc..

[jasaunders]

Networking is the key to building any business and it goes for finding investors as well. Networking will help you in any pursuit, personal or business, for the rest of your life. The most successful people are the most connected.

If you are looking for funding other than from professional investors, such as loan and grants programs, check out my blog post: 15 Ways to Fund Your Business. I'm not selling anything, there is no book to download. Just a few hours of research I put together in a blog post for free.

[Cole Taylor]

Yes, I have a list of investors I'll let go for 5k. Wire transfer only.

[2gould]

The National Venture Capital Association website can be a good resource and helpful depending on what you are looking for.

[jasaunders]

Even if you have a list of investors, 95% of them won't take a random Joe soliciting them their business plan without a referral or recommendation. So getting your hands on a list won't help, nor will randomly sending your business plan to VC firms.

[2gould]

Josh:

I agree. Normally, mass mailing VCs will not work. However, I do know of a few occassions where it has. If someone is willing to put in the time, it might turn out okay...But again, you are right, its rare.

PS> I like your blog

[Cole Taylor]

If OP is asking for a list then he hasnt done enough preperation and a list isnt going to do any good. However, IF the OP had everything lined up and had a solid BP to send then he simply needs to get in front of the right people.

The right people are not going to be angel or VC groups. The right person is generally a gambler with money to blow on the next best thing. Any deal needs to target a 10:1 plus ROI and be sexy!

Assuming a sellable deal (most are not as we're well aware) a targeted list can work wonders. Again, we're talking wealthy accredited investors, not sophisticated institutional or pseudo institutional (read: angel groups). These are people that get many, many calls from movies to oil and gas exploration.

I was being sarcastic about selling a list, but I wouldnt simply throw out the idea. Years ago I sold a project that put itself out there as a defense contractor. I helped myself to the database somehow (gave the sec. $1000) and proceeded to raise $2.5M on an overseas manufacturing deal, another $3.0M for a skincare company, $1.5M on land deal, etc.

Currently, I have a list of investors that invested $189M into O&G exploration. Someone would have to give he a hell of a lot more than 5k for it though, it's good for at least a few million raised assuming a good deal and a better salesman!

These guys are used to doing business over the phone and are check writers. For the average Joe who is never going to sit across from a VC it's an option.

As far as never having talked to them before, if you have a good deal they dont care. It's the same way a rookie stock broker builds his/her book.

[jasaunders]

That's why I said 95%... I'm sure it has worked before, just very unlikely. There are better ways to go about it that are more successful. But if you do a little bit of searching, its not hard to find lists of VC's or Angels.

Thanks 2gould!

[Cole Taylor]

For the sake of discussion could you please elaborate on some of the more successful ways?

[jasaunders]

The obvious one that started this thread is to network. Networking is key. You need to meet the right people who can connect you to other powerful people.

Aside from that, as Daniel has suggested, contact other successful entrepreneurs that have received VC funding and find out about the VC firm(s) they used and if they would be willing to give you a recommendation. This is really just an extention of networking.

Another way, is to enter a business plan contest.

Another way is to drop-in the entrepreneurship center at a local college or university. For instance, my school has a center avilable to help anyone looking to start or grow their business by providing access to experienced entrepreneurs and investors.

Another way is to enter a contest sponsored by VC firms. There are starting to be more and more of them. One is the "You be the VC" contest, a big one is the "Y Combinator."

[akula]

The obvious one that started this thread is to network. Networking is key. You need to meet the right people who can connect you to other powerful people.

Aside from that, as Daniel has suggested, contact other successful entrepreneurs that have received VC funding and find out about the VC firm(s) they used and if they would be willing to give you a recommendation. This is really just an extention of networking.

Another way, is to enter a business plan contest.

Another way is to drop-in the entrepreneurship center at a local college or university. For instance, my school has a center avilable to help anyone looking to start or grow their business by providing access to experienced entrepreneurs and investors.

Another way is to enter a contest sponsored by VC firms. There are starting to be more and more of them. One is the "You be the VC" contest, a big one is the "Y Combinator."

my friend; gr8 points, these people they don't deserve your effort

[jsabol]

So Basically, Its not about what ya got. your numbers, or your potential Profit. Its about who you know.Thank you all for your responses.

[jasaunders]

Exactly, you hit the head right on the nail.
Anyone can make the numbers look good. Everyone has "conservative projections" that make millions. Lots of businesses show potential on paper. None of this means anything if you don't know the right people and don't have the right people to run it.

[Cole Taylor]

my friend; gr8 points, these people they don't deserve your effort

I dont know who your post is directed to, but I think it's a pretty crappy attitude especially coming from a moderator.

That being said, boards like these are filled with theorists. People who read about what should be done yet have zero in the way of practical application. Of course this is to be expected as many people are here for advice, guidance, and direction.

I do not disagree with any of Jsaunders points, however, reallity for the average joe that reads this board (original poster) is that you're suggesting that if you can just get that VC meeting... The fact is 99.99 percent of the ideas you see laid out on these pages wouldnt get a second look from a Venture Capitalist or any organized angel group.

Some of the ideas/concepts are simply horrible and should have been discarded long ago. Some of the people dont have the sophistication or business acumen neccesary to get in front of the right people and when they do often times their business model isnt scalable.

Lets talk real world here for a second:

"The obvious one that started this thread is to network. Networking is key. You need to meet the right people who can connect you to other powerful people."

This is something everyone should do whether they are looking for capital or not. Great point.

"Aside from that, as Daniel has suggested, contact other successful entrepreneurs that have received VC funding and find out about the VC firm(s) they used and if they would be willing to give you a recommendation. This is really just an extention of networking."

People asking advice on these boards dont know other entrepreneurs that have recieved VC money, if they did they wouldnt be asking here. So although this is a valid point we need to look at the medium were dealing with and the audience. Assuming they know someone and can get an intoduction their chances of getting a face to face based on thier preliminary material is probably 1/10th of 1 percent. Getting venture capital is extremely difficult and if and when you do get it prepare for extremely low pre money valuations, board control, management control, and series A preferred with a laundy list of terms, conditions, contingencies, etc. Not really what the aspiring entrepreneur had planned or is prepared for.

"Another way, is to enter a business plan contest."

Keiretsu is great for this although they do charge you $5000. Some think that because they charge a fee they're not above board, however, I know people that have recieved money from them.

Another way is to drop-in the entrepreneurship center at a local college or university. For instance, my school has a center avilable to help anyone looking to start or grow their business by providing access to experienced entrepreneurs and investors.

Another way is to enter a contest sponsored by VC firms. There are starting to be more and more of them. One is the "You be the VC" contest, a big one is the "Y Combinator.

----------------------------
All good stuff Jsaunders and people would be wise to utilize all of these sources. In fact, anyone looking for money isnt trying hard enough if they dont exhaust all resources.

Only thing I will add is that for the average entrepreneur probably has a greater chance of recieving funding by utilizing finders. They will need to use the resources you mentioned to locate these people. It's pretty simple, much simpler in fact than getting VC dollars, to raise a few hundred thousand from accredited investors, regardless of how you connect with them, do a reverse merger (funded by those with thier trailing interest and free trading stock), followed by a PIPE.