A unique way to raise start up capital

**ceo77** · 12-06-2007 12:42 PM

I use to always say if you can convince 1 million people to give you $1 you would be a millionaire, and thats the concept of generating start up funds.

Angel investors usually invest large sums of money into businesses and other investors that do put money usually want to have some say of what goes on in your business and of course there is the pressure of having to pay them back.

But what are the chances of someone wanting a return on a $5.00 investment?

In a nutshell you put up everything about your business online including company info, business plan and all that you have done thus far. you put your start up goal (my goal is $85,000 for what I'm trying to do), and what you would need the funds for. Lastly you put how much you've raised so far and your companies progress on your site/blog whatever. Lastly you have a donations button where potential investors can donate. A limit of say $200.00 would be the most anyone can invest (if they want to make more than one investment so be it)

To insure this isn't a scam, I'm listing all of the companies info including phone numbers etc.

For people like me that are having a hard time getting loans or finding any source of start up capital I think its worth a try.

Its hard having a good idea with no funds to make it a reality.

When I'm done with my site I'll post it. You'll be able to see how much I've raised.

**2gould** · 12-06-2007 01:08 PM

Creative for sure but why would i donate to your business? Maybe I read your post too fast, but I am not sure people would want to donate their hard earned money for no return to a for-profit enterprise. Unless you are a charity good luck with this approach.

Please keep us posted on how it is going!

**ceo77** · 12-06-2007 01:21 PM

Originally Posted by 2gould

Creative for sure but why would i donate to your business? Maybe I read your post too fast, but I am not sure people would want to donate their hard earned money for no return to a for-profit enterprise. Unless you are a charity good luck with this approach.

Please keep us posted on how it is going!

Its definately for profit and thats why i'm keeping the investments small. Everything about my company will be posted. There are so many angel investor sites and services out, but I don't want someone to front me large sums of money for that very reason. I'm looking at it like someone making a "small" donation and not an investment. But I'll find out in due time. I want to have it up by Monday so hopefully going to the site will answer a lot of your questions. Some people like to support others just because. If this blows up I might make a forum for others to do the same thing. I've raised $267.00 in small 1 to 10 dollar donations without a site over a 30 day span so I know the potential is there.

**2gould** · 12-06-2007 02:18 PM

Well, like I said, keep us posted and give us the site so we can check it out. I like the non-traditional thought process and I am curious to see how it plays out.
good luck!

**rogercbryan** · 12-06-2007 03:30 PM

Hmmm… I’m confused?
Invest: To commit (money or capital) in order to gain a financial return

So your plan is to get strangers to donate the capital needed to start your business? You are doing this because you do not want to have to give investors a piece of your company? You have tried to get a loan to fund your company but have been unsuccessful? Am I correct in my evaluation of your situation?

This would mean that your current business plan is to solicit strangers for capital in order to get your business up and running with out giving them anything in return?

If you can pull this off… you’ll be a genius. I would wager to say that if you are not willing to give up part of your dream in order to make it a reality… then it isn’t really your dream. I’m not your CPA either but I can see 2008 sales at about…lets say… zero? The world doesn’t work this way.

If you want to get your business up and running you have to give some of it away. Structure the deal correctly and you can buy back parts of your stock over time. I’ve been through this. I spent four years trying to get my company up and running on my own. With $61K in sales over the four years I was far from a success. After giving an investor a share of my company for a $100K loan… I’ve done $624K in sales in 2007. This is just the way it works… you get nothing when you are willing to give nothing.. GOOD LUCK!

**Cole Taylor** · 12-06-2007 03:42 PM

OP: don't know why you put this is two sections, but I replied to your other thread. In sum: illegal and a bad idea.

**2gould** · 12-06-2007 05:09 PM

Cole:

I am not sure why this would be illegal. A crazy idea maybe, but illegal?? If I understand correctly, he is not giving away shares or interest in the company in return for the "donations". I think he is simply asking people to give him money, promising nothing in return, to run his business. If people want to toss their money away fine, but I don't see the illegality. Maybe I am missing something?

**ceo77** · 12-06-2007 05:41 PM

Originally Posted by 2gould

Cole:

I am not sure why this would be illegal. A crazy idea maybe, but illegal?? If I understand correctly, he is not giving away shares or interest in the company in return for the "donations". I think he is simply asking people to give him money, promising nothing in return, to run his business. If people want to toss their money away fine, but I don't see the illegality. Maybe I am missing something?

Thats pretty much what I'm doing. Its going to have a paypal donations button. I'm not looking for companies to invest thousands of dollars into my company for the very reason, they would have control. Asking for $2 and 3$ donations is a difference from asking for 20k and 100k. Is it a gimmick, maybe. The odds of me generating 100k, slim to none over a short period of time. But it doesn't hurt to try.