Exploring Raising Capital

[zachthompson]

I'm in the process of getting a startup off the ground. We've already got:

website
business plan
minimal inventory
advisory board

Who should I take too about the different ways of raising capital and the respective pros and cons? Any advice?

I am willing to give up some control to a board if need be or major stock holders, but am not interested in having a venture capital firm tell my board/me what to do.

Thanks!

Zach Thompson

[nmacneil]

Personally contribute as much as you can along with your business partners. I did this with my business and bootstrapped-it for a long time. Bootstrapping forces you to be frugal and more creative because you need to stretch the little money you do have as far as it can possibly go. Bootstrapping teaches you a lot of good business lessons.

If you need more, try a business loan or line of credit. If you don't qualify, ask friends and family for loans in exchange for a return on the investment. Only if you have exhausted all of these options should you approach venture capitalists.

If you are 100% sure that you need to raise capital, make sure your business plan is flawless. Good luck!

[pboychuk]

You wont get a biz loan/LOC unless you can secure it, or have been in business for at least two years. To go the investor route, as nmacneil said, have a flawless business plan.

I personally Friends/Family/Bootstrap. That is just how I am, it requires less formal planning and doesn't discriminate based on income statements and age..

[unlimited22]

Any advice?

I am willing to give up some control to a board if need be or major stock holders, but am not interested in having a venture capital firm tell my board/me what to do.

You shoud always start with family/friends/ even former employers who know your work ethic if you have that kind of relationship.

Small investments - under $50K can be a business loan even a people to people loan such as Prosper.com, GlobalFunder.com, Zopa.com or LendingClub.com

Given your criteria, you may be leaning towards angel investors. Start local.

Also, get the chip off your shoulder. It's enough to know what you want without sounding defensive in your pitch.

Some investors have experience in your field. You may need that.

[akula]

damn it, it's some bullshit mlm juice thing
his advisory board is his upline
shame, for some reason i hoped there was a real business here