VC Fodder Forums / The World Famous Dr. VC Advice Forum / The World of Fodder

Entrepreneur in mist...

snowman — Sat, 05 Jan 2008 16:23:49 GMT

Hi Dr. VC, hi all,

I have a bit specific question about finding VC willing to look at my business plan.

Situation is as follows:

- I'm not a company
- I'm not USA citizen
- BP is IT, Software (OS), Hardware (PC platform), Mobile telecommunications, Multimedia
- BP involves buyout of one or two USA companies (private)
- I'm looking for 100m$

Now the question is: how direct should I be? I know my situation does not look good, but I'm still willing to try. So if you have any suggestions ...

thanks,...

looking for investment opportunities

limitup — Tue, 02 May 2006 08:23:36 GMT

hi, i am new here, first post. i would like to know if anyone can suggest where one should start if he wants to become an angel investor. are vc funds a good idea? is there a place where i can find potential projects and choose where i wish to invest? i am not looking for multi-million dollar projects, something more in the 500k-1mil range. thanks....

amnon

Private placement memorandum

First BOV — Sun, 21 Oct 2007 08:45:56 GMT

Where do I find funding for a PPM?

stage assesment

First BOV — Sun, 21 Oct 2007 08:48:11 GMT

How do I determine what stage a company is in? Are these the correct stages? Have I added or omited any?

Research

Seed

Startup

1^st

2^nd

Mezzanine

Bridge

LBO

MBO

VC equity for a new service company

PolarBeer — Tue, 08 Jan 2008 16:35:01 GMT

Hello,

Myself and some friends are working on starting up a new services company in a market we know, though not necessarily as entrepreneurs. We've already found some interested investors who want to provide us with our first six months of operating costs, including salaries, in exchange for a lump of equity, and return of funds at some point (yet to be determined) after we become profitable.

Given that we're a services company, I can't find any valuation models that talk about how to a valuation or equity division - the company effectively has no value on starstartuprt from its employees and what's in their little heads. The only suggestion we've had thus far is a model where we split equity along a ratio like so:

: <"lost" salaries of employees>

Where the "lost" salaries is the total of the difference between what the employees WOULD have made in their normal jobs and what they will make in the cut-down world of a startup. Obviously in such a model, the employees are going to be eating a lot of beans to maintain 50% equity.

Any suggestions on an equity-splitting model for such a situation? Both sides of the agreement would love any advice!

pb

Start Up Logistics Co looking for Capital

The Complete Logistics Company — Fri, 21 Dec 2007 00:05:18 GMT

I am a shipping and logisitcis professional having over 15 years of experince in the shipping and freight forwarding feild out of which more than 11 have been in senior management position.

I have a business plan that I have run through a few people from the industry and they feel its the need of the hour and with the right funding the start up can grow into large and profitable organisation within 3 years.

Since I do not have enough funds and the concept in new I am looking for VC or individuals who are willing to invest in a fast growing industry in India.

Promoter the Complete Logisitcs Company

V C for real estate developemnt

jbq — Sat, 23 Sep 2006 01:26:33 GMT

I there a difference in how one would sorce V C for realestate deals as opposed to other types of deals?

I have real estate that I want to develope.

http://maps.google.com/maps?f=q&hl=en&q=298+Sandpiper+Avenue,+Surfside+Beach,+TX&ie=UTF8&t=h&om=1&z=16&ll=28.968818,-95.269575&spn=0.00933,0.026951&iwloc=A

Anyone with an ideas, let me know.

Thanks,

JBQ

CEO Looking to help start up move to next level

Laughinboy — Mon, 22 Oct 2007 16:24:09 GMT

Hi all, I have just joined the forum and after reading many of the recent posts, thought I would add mine.

I am currently looking for an opportunity to work with a start up that is perhaps in need of some new thinking or just new energy to help move it to the next level. I bring twenty years of senior management experience to the table together with a successful startup venture that I sold earlier this year. My background includes turnarounds, startups, launching of new divisions and the launching of new products.

If anyone knows of a company or companies that might be interested in my help, I would greatly appreciate an introduction. I am also very happy to post answers relating to my startup, how we started, how we raised cash and ultimately why we sold.

what do I do next

mench — Sat, 20 Oct 2007 13:44:06 GMT

Hi,

I am the owner of an online caskets company, as a matter of fact I started the whole online casket business from my dorm in university, I have been very inovative, figuring out how to sell with no inventory, everything has been great for the last few years, customers happy. Like all people that start up business I am allways looking to get bigger. I have an oportunity to get bigger, but things seem to be very complicated with dealing with diffrent suppliers. I have convinced the state of New York that the amount of jobs I will create warents their financial help. All that is left is getting this thing off the ground and dealing with companies off shore. It seems that by the time the product gets state side there are soo many middle men that its impossible to make a profit. Does anyone know of any mentorship groups or people that could lend an ear to me or possible partner with me giving experience to the deal.

thanks,

Michael

Financial Projections for Web 2.0 Start-up

kihtrak — Thu, 27 Jul 2006 10:54:00 GMT

Dr. VC,

I am not sure if my query is relevant to your VC section but let me ask anyway....

We are currently far from seeking Angel/VC capital and are trying to come up with financial projections for our web 2.0 start-up.

Could you suggest some relevant tips/links that would enable me to come up with my projections? I am looking for data that helps me to monetize ad revenues based of CPM, CPC, etc?

Any help in this regard is appreciated.

Thanks

Advice on how to reach the correct investor

mail.com.uy — Tue, 17 Jul 2007 17:12:19 GMT

We are the owners of the domain www.mail.com.uy (.com.uy is the domain for Uruguay, South America) and we are looking for an investor to develop our project on the site.

The plan is to create, at first, a web portal with local news, online games, chat, blogs and, of course an email server. Then other services will come along like selling advertising for other web pages, offering streaming online content and even our own internet access.

Uruguay is a small country with 3 300 000 inhabitants where more than 50% of them are internet users (according to official sources). The main email service providers have no antispam filters and offer low drive capacity and that is the main cause for the need of a new free local email service.

Running costs will be low (we are a cheap country) and the initial investment should be around US$ 100 000 - 150 000. That should be enough for, at least the first year of operation.

I have been browsing past posts and have realized that such amount is considered small, too small to ask a VC for it and too big for me to raise between friends and relatives, so where should I go for financing?

Thanks in advance for your advice!

Esteban.-

Team to start a business

AlexN — Wed, 08 Feb 2006 21:16:24 GMT

I realize this is a very general question.

How do we find our future business partners? I am having difficulty meeting motivated individuals who are willing to forego some personal comfort to get a business started. I feel like I am surrounded by employee-mentality individuals who are reluctant to take any risks in life.

May I should stop looking for a partner and just go on my own?

Regards,

How was skype valuation reached at?

adityayadav76 — Fri, 29 Sep 2006 03:31:30 GMT

Hello Doctor VC,

I have come across an alum + friend from college who is into IM business. During my discussion with him he told me that even though firms are valued at 2x revenues. In the consumer IM business where revenues are negligible compared to the number of users the valuation is done by multiplying the number of users by a factor such as $40/user. He cited Skype purchase as an example.

Can you please explain how skype valuation was reached? (The maths behind it) I did search the internet but didn't find a satisfactory explanation. Want to ask the expert instead.

Thanks
Aditya
P.S. I admit I didn't search your forums if this question has been answered earlier. In that case please provide the link to the topic in the reply and accept my apologies on my inability to locate it.

Have an Idea, How do I Start

thinker — Mon, 28 Aug 2006 10:02:12 GMT

I have an idea for a new website that I believe has A LOT of potential.

However, I am 19, about to be a sophomore in college, and have no idea where to begin.

Do I start the website, hope it stays afloat, and then approach the VC folks so they can finance the growth of the website? Or can I just show the VC people my idea and have them finance me without any website, employees, office, etc exisiting?

Thanks for the help!

Thinker

Planning for Funding Rounds

LongView — Fri, 22 Sep 2006 12:05:00 GMT

Dear Dr. VC,

I’ve got a few questions on how to plan for funding rounds.

Our small company has just won an invite to present to a prestigious west coast VC, where two board members will be present (woohoo, that’s a really big thing for us). So now we’re going down the checklist…

- Wow factor presentation of our prototype, check

- Solid case for how it will be profitable and differentiated, check

- Milestones planned for cash needed and revenue projections, check

- IP - patent application submitted, check

- Team – the CEO and CTO have had GM and director equivalent positions at a large blue-chip tech company, and have also bootstrapped a previous startup that broke even after 3 years. for the Team item, half-check I guess? J

The problem is I’m not sure what the latest thinking is on the best way to stage funding requests. Questions are:

1) Should you ask for only enough to reach year 1 milestones? Reason being you can ask for year 2 money when the company has potentially higher valuation.

2) Is it odd to even work in 6 month funding rounds? I ask because our milestones are very concrete along 6 month periods, so this is really an extreme version of question 1.

3) Or should you ask for as much as possible up front? Reason being you don’t have to be in fund-raising mode as much.

4) If we are successful with one VC should we still pursue other VC’s to participate, or is this something deemed undermining? It’s not uncommon to read about multiple firms involved in a deal, but I’m not sure when and how this is appropriate.

Btw, if it matters the numbers we’re talking about here are roughly 5MM year 1 and 8MM year 2.

Input greatly appreciated -

Regards,

LongView

Existing Company - Looking for expansion capital

HelpMeIMCoding — Tue, 07 Feb 2006 19:27:14 GMT

Hello,

I have a small software development company specializing in the food service industry. My standing joke is that when we first started out, we were really, really, really, really small. Now we're just small.

I started the company in my garage in 1999 and since then, we have built a customer base of about 800 installations world wide. Our software is a mid-priced product so 800 installation is pretty decent. Especially when you consider that comparable products (feaures, quality, etc) are from companies that have been in our industry since the early 80's.

The problem is of course, money. We're all making a living but we've reached the point where we really need to start expanding to take advantage of what we've accomplished thus far.

We have already received offers and overtures to either purchase our company or license the source code of some our software products. The offers were pretty substantial, but far south of where I'd be willing to give up what I'm doing (frankly, it's a blast) or what the company and it's products are worth.

At any rate, I'm going to be devoting time this year to seeking out capital for our expansion and would like know if it's any more difficult to procure capital for an existing conern vs. a start up. Most of sites that I've seen seem to deal mostly with startups.

Thank you

How much equity (%) should i grant?

ykopeliovich — Tue, 22 Aug 2006 21:00:52 GMT

I am in the process of launching a new healthcare startup. I was able to recruit several prominent doctors and scientists to take part in the firm’s Board of Directors. Approximately two months ago, I embarked upon a quest to find a qualified business partner (preferably – a successful figure in the healthcare industry). Two days ago I received a phone call from a very prominent physician who exhibited substantial interest in becoming my business partner. He is well known, well connected, and his area of expertise fits my business model like a glove. He wants me to give him a proposal that he cannot refuse. He stated that it should be generous equity share with a base salary that should commence payment when the company becomes profitable.

Dr. VC - here is the problem: I don't have the slightest idea how much equity I should grant him…

He is not going to put money into the business at this stage (however, he is going to assume the full responsibility over the medical part of the business). I am convinced that if he joins the firm then the road to success is around the corner. I want him to really bust his butt for the business therefore i don't mind giving him a nice share.

Given that this startup is still in its “diaper” stage, I cannot really rely on any valuation calculations. What do you think should be my benchmark or guide on how to come up with the answer to this riddle?

I talked to several people from and they recommended granting him somewhere between 20%-25% with a kicker (in a form of warrants) equivalent to 5%. Does it make sense? I swear, I have no idea…

What do you think?

Any suggestions?

I truly appreciate your great help,

Thanks so much,

Yoel

How do VCs access intelligence to make a decision about an investment?

tamar6 — Mon, 07 Aug 2006 09:09:04 GMT

How do VCs access intelligence to make a decision about an investment?

Do they read pertinent journals? Talk to consultants? Talk to experts in the field? All or none of these?

Or is it something else entirely?

Please give as much detail as possible

Thanks

tamar6@gmail.com

Details of Venture capital association's help in establishing a start up company (specifically in aircraft industry)

raghu — Mon, 13 Feb 2006 07:57:41 GMT

To start with, in India, we want to establish a self sustainable aircraft and airline industry. The airlines will be based on door-to-door transportation concept. The required cargo and passenger aircraft will be built by the proposed aircraft industry. The Aircraft will be maintained in-house and flown by pilots trained in our flying school.

With this concept of airline operation with our own aircraft, our own maintainance and our own pilots will enable us to put up a very profitable low cost airlines. For the initial period of five years we will manage with leased out aircraft. During this time we will bring our aircraft industry to the level of producing the aircraft required by our airlines. These will be 30-50 seater aircraft required in the feeder lines in India. We will then look at the world market for our aircraft and expand our airline operation in India and over seas.

Initial investment spread over 10 years is $ one billion (USD).

Expected return spread over 20 years is $5 to $6 billion (USD).

We have only the idea and nothing else. We are a group of aeronautical engineers currently working in an aircraft project. We are looking for a venture capital association which can evaluate our idea, (if found suitable), help us convert to a business plan, provide the required finance and other ancilliary support to make it a success.

Service Provider Wants VCs To Introduce Him to Portfolio Companies

Dr. VC — Fri, 20 Jan 2006 16:05:20 GMT

Dear Dr. VC,

I recently had the chance to read Venture Capital 101 on a flight from Philadelphia to San Francisco. I thought it was excellent and it was exactly what I needed to become more familiar with the general working of the VC process.

We are not looking for funding - however - we are proactively contacting VC's and selling into their portfolio companies - so I wanted educate myself on the process.

One question I did have that was not covered in Venture Capital 101. If you were a service provider how would you go about contacting VC's? More specifically, our service can benefit their portfolio and we would like to present directly to the VC's and have them plug us in to the portfolio companies!

Regards,

Puzzled in Flyover Country

Dear PIFC,

Thanks for the nice comments, we're happy you enjoyed Venture Capital 101. As far as contacting VCs is concerned...that's tricky. Actually, it is one of the reasons behind the creation of Venture Capital 101. The author wanted to demonstrate what he knows about venture capital. He also wanted to provide a resource to VCs.

Ironically, as a result of not trying to sell anything to VCs, the author ended up making a ton of great contacts in the VC world.

The most prescient advice I can give is this: If you want to make contacts with people (VCs, or anyone else), have something to offer. Be a resource to others. Take the long term approach. And when I say have something to offer, I mean have something beyond the thing that enriches you.

This is the thing that drives me nuts about many real estate people -- all they talk about is fricking real estate. And if you're not interested in the lousy house or 3-flat they're selling, they have nothing else to talk about. You're persona non grata. It's one of the worst forms of ego-centric behavior.

Business relationships are based on long term, two way conversations, not short term, one sided conversations. If all you talk about is "sell, sell, sell, me, me, me, my product, my product, my product, me again, this will be great for you but the really great thing is it will make money for me," you're going to lose people.

There's nothing wrong with making a buck, there's nothing wrong with "asking for the business," but you have to find balance and find a way to be genuine.

Remember, everyone under the sun is trying to sell to VCs, and VCs are notorious "tough sells." In fact, I wouldn't waste my time trying to sell to a VC. If you have something a portfolio company can use, sell to the portfolio company.

Just because a VC invests in a company doesn't mean that the VC runs the company! In my dealings with VCs (while working for venture funded companies) the VCs might suggest something (usually at a board meeting), but they do not dictate terms. The VCs believe - rightfully so - that it is up to the management of the company to run the company. The VC might have a little weight in terms of suggesting a certain service provider or solution (often at the behest of the company), but the VC's opinion is usually just one of numerous sources of sound advice the portfolio company seeks.

Further, VCs often (and quickly) become turned off when someone tries to sell something that supposedly "will help your portfolio companies." What the VC will read is this: "this yahoo wants me to become a de facto sales rep and get the product/service into the portfolio companies."

My advice to you: Sell the product yourself!

Good luck!

Who do I turn to next?

Bowl4Dough — Fri, 10 Feb 2006 23:25:32 GMT

My wife and I are wanting to purchase a local bowling center. The owners are getting older and are looking soon to get out of the business. Their daughter isn't interested in running it when they retire. We have expressed interest in taking over and they have been willing to discuss the possibilities. We used a grant company to help us try to obtain the needed capital, but have had no luck finding a fiscal sponsor to help us with the venture. We are going to continue looking, but if there are other ways to get the funding, through investors or other ways, we would be more than happy to hear them and check them out. I have already started putting together a business plan and some other informational documents to have ready when needed. I can probably obtain other information about the business from the owners if needed, such as financial statements, accounts payable, mortgage, etc. The center sits on a little under 4 acres of land that can be used for expansion. We are hoping to add a couple of miniature golf courses, party rooms and a game room to create a Family Fun Center. But we hope to start by getting the bowling center and building that up and then expanding. Any Ideas?

Raising Venture Capital for a Not For Profit Startup

dwestfall — Tue, 04 Apr 2006 16:23:38 GMT

How does raising venture capital for a not for profit differ from raising venture capital for a regular for profit start up? What are the challenges? Can it be easier or more difficult?

Thanks
BDW

Don't they afraid their idea be copied when they post them here?

Newland — Fri, 04 Aug 2006 11:39:43 GMT

People post their plan here do not care about the idea being used here?

Any one knows Investors on Real Estate?

markol1 — Fri, 28 Jul 2006 01:37:03 GMT

Ok I found the way to get properties for 20, 40 60 % below of there Valued price,

Now what? I need to find the way to sell them fast to investor, any one have ideas? Where I can do it?

If you want to get more Info about my self you can visit my web site http://luisavendano1.point2agent.com/ or email me at rich@dreamrus.com,

For now I am creating a data base from people interested on invest on Real Estate.

So let me know.

How many venture captials should I contact at the same time?

hzh003 — Fri, 28 Jul 2006 07:58:16 GMT

Hello there.

I am currently looking to raise some money for our company. I am not sure how many venture captials should I contact at the same time. Should I just send a email with my business plan to one first and then wait for a couple of days?

Or should I just send them all out at once to all the venture captials I found?

Thanks

Tom

Founder's equity in internal spinout

Blingblang — Sun, 16 Jul 2006 17:16:47 GMT

Hi Dr VC,

We are a small team of employees working in a mid size private company. Including me there are about 3 founders who have developed a technology that has a decent probability for commercial success. But it is a field the company has clearly decided not to pursue. But the management is willing to spin us out by licensing the technology. They also want to be the sole investors for series A funding.

This would be the first time the company is doing anything like this. We looked at various sources and found that the founder's equity should be around 12-20% + another 10% equity to attract talent at later stages. This seems too much for the parent company, way too much. They would rather see the founders just get a few tens of % above their current compensation without any substantial equity stake.

How can this be resolved, especially when the company thinks they would rather shelve the technology than give any substantial equity to the founders. They don't mind foregoing the very attractive ROI in spite of a equity position for the founders than to give the equity position to the founders. Isn't the equity a key motivator to keep the talented team in play until commercial success. I am concerned that without that equity the talent would leave prematurely. I am having a tough time getting this through to the company management.

Any advice would be greatly appreciated. I hope I explained the situation well enough for you to understand the nuances of emotions playing out.

Thanks in advance.

Blingblang.

Was I ripped off by my so-called partners?

tical — Thu, 29 Jun 2006 12:17:11 GMT

I am a technical person with some past decorated experience.. In other words my name associated with a company is worth a good amount of money. I have been offered a position/partnership in a new, not yet formed company that is soon to receive series A funding from VC.

I am currently well employed and after being contacted by the CEO of the new venture, and being told I would be "taken care" of if I joined. There was thought that developing some key technologies would add to valuations, so I developed some unique cutting edge technology for the new venture, using my own time and my own hardware and the code is still only seen by me..

The 2 partners (boyhood friends) asked me to join them on a trip to meet with VC. The three of us did excellent in the meetings and the company has received a commitment of funding. My experience and this technology of course was mentioned to VC and immensly helped in the valuation.. When we get back into town I decided it was time to talk to the partners about my % of the company and I realized that the % they wanted to give me is much lower than I anticipated.. They are offering me a fairly low market salary and about 2% of the company.. Since I helped bring the idea to VC, and since the technology I developed and my name add so much value to the project, I expected something in the neighborhood of 25-33%.. I am already thinking of other options I have with other ideas / partners and other VC's..What do you guys think? What are my options?

Gimme the names of investors for my {insert business idea}

limitdown — Sun, 02 Jul 2006 12:41:35 GMT

Hi everybody,

I have spent the last five years studying the Foreign Exchange Markets. I have come to understand why such a small percentage of traders actually profit from these markets, they are absolutely brutal.

To make a long story short I have come up with a method of trading that takes most of the emotion out of trading, and puts money in your pockets on a consistent basis. Minimal time is needed to utilize this method (10-30 minutes daily). The returns are outstanding. An annual return of 100% is fully anticipated, with the potential for much higher returns. The amount of Capital needed to implement this method is minimal, but earning potential is basically unlimited. I would suggest beginning with 500K to $1,000,000 dollars.

Does anybody know of a VC, or an angel investor that would have an interest of looking into this matter further?

Thank You

Earl Thomas

limitdown2002@yahoo.com

Spain small business

Matthew Copley — Mon, 19 Jun 2006 11:27:54 GMT

I am a professional geologist and highly motivated to succeed. I opened a company in Spain to provide engineering geology and construction site investigation services to construction companies, architects and individual land owners. There is a market in Spain for engineering geology to fit in with new government planning legislation. I need venture capital to the tune of $50,000. I have no securities in Spain. I do have a property in France, fully paid up which can provide some security. Three banks turned me down, already. The banks are in England, France and Spain. Please advise on my successful way forward in gaining an advance. Or, do I just sell my property and keep my independence?

Evaluating an Investment Opportunity

kpabley — Tue, 13 Jun 2006 13:32:38 GMT

I have been a subscriber to an CRM application for investors, very similar to salesforce.com. The owner of the company and I became good friends,and I had an issue of other users saturating the marketplace. Instead of selling a franichse right to a territory, the founder of the company offered me to buy 6% of the company for $150,000.00, because according to him, the company has been evaluated as of right now worth $2 Million

The company currently has over 100 users who pay a monthly fee of $200.00 per month, and they charge an inital set up fee of $10,000.00 - His plan is to not have more than 1000 users nation wide

How do I know If his offer is a good opportunity or not ?

Venture Capitalist in Africa

Sherif — Tue, 09 May 2006 14:59:11 GMT

I'm a new member to this forum. I just want to know if VC and Angels operates in Africa and how I can find them

Business Plan Review

J Pryor — Thu, 18 May 2006 07:46:17 GMT

I'm not looking for a firm to write my business plan, but I would like to have the plan reviewed and critiqued. This will be my second plan and it's been 9 years since I participated in the first one. We were told that one was excellent, so I think I know what to include, but since I'm doing this one alone, I'd like to get an experienced opinion. Any suggestions? Thanks in advance!

Investment Opportunity in Steel Rolling

Sherif — Tue, 09 May 2006 14:53:20 GMT

My Late Father had a Steel Rolling Mill which was operated for about 13yrs. The company went out of production as a result of unstable economy and bad govt. policies with unfavourable operating environment. The company closed down in 1998 when they ran ouf of working capital and were not making profit. Though my Dad plan was to generate capital to refund the business.Some few months later he died. Ever since then, we've been trying to revive the company without success. Of recent, Our chairman called a meeting recommending we sell off the company. This decision to me and some others in my family is not the best idea as we believe based on current trends of things here in Nigeria. The company can still be revived and managed profitably. My plan is to buy this company off my family and manage it myself to live the dream of my late father. I'm hereby seeking opinions and interest of friends in this forum to advice and checkout this opportunity for growth. Our Economy is on the verge of growth and surely steel business is a backbone for development and growth.

But is this program legitimate?

ScribesUnlimited — Fri, 05 May 2006 10:39:40 GMT

Everyone is familiar with FHA/VA programs for loans, correct?

HUD steps in to make a guarantee to the lending bank that if the borrower defaults, HUD will buy the loan back from the lender.

Well, something new has arrived, and we'd like comments on if this program indeed is legitimate. We ask this because one of our ongoing services is writing business plans, and we have been contracted to write as many as 50-100 business plans for clients in the next few months. The SOURCE for these business plans is using this program, and since they are going to be a heavy source of income for us for a bit (@$2500 - $3500 per plan = Happy Math! ), we would really like to know this is a real program!

As far as we know, it's been tested in other countries with very good success. It entails working with an insurance bond, except HUD doesn't guarantee it; a large insurance company backed by Deutche Bank supposedly will.

The client submits an Executive Summary and approval letter from any bank that states that the funding group will fund the Financial Guaranty Bond being issued on their behalf. The project is then reviewed by the Bond House which actually issues the FGB to the client’s funding source. After the Bond House reviews and approves the client, the client will be given an outline concerning what the Bond House charges, normally 2% per deal. The client will transfer their funds to a THIRD PARTY escrow account in the U.S. The Bond House then releases the instrument to the client’s funding institution 72 hours after the payment is made to the escrow account and at that point the lender for the client will supposedly make the loan to said client.

That's the program in a nutshell, and we hope people can add comments and concerns. Thanks!

Paula and Paul

Ripped Off By Predator VC Broker

bernieday — Wed, 18 Jan 2006 23:56:39 GMT

I just got ripped off by a person behaving as a “VC Broker,” and want to WARN others about this type of person. While he seemed totally knowledgeable, said all of the right things, and provided an agreement I felt was completely ok – I still got ripped! How does this happen?

I'll call him Larkin.

Larkin approached our company through a referral (who it turns out got ripped off also for USD 30,000 and who knows of two other companies that got ripped off).

Larkin preys on the purse strings of small emerging companies (we have 15 employees) that are ready to go to market with a product, having successfully passed the seed round with deliverables (and might I add USD 500K in sales already). Each of us was ready to emerge for a Series A Round of financing – looking to Silicon Valley for funds. He claimed to have all of the connections.

Then the deal was struck; We paid the retainer and Larkin began working. His agreement said, only 10 hours a month of work to prepare for introductions within about three months, with billing and payment due June, 2006 (at a rate of $425 an hour). After 18 hours of work and just prior to a meeting he slapped me with an invoice for 24 hours of work (that day’s planned 4 hours and the next day’s unplanned hours…) and demanded payment on the spot. I said, “no, we have an agreement…” He took it out and said, “but it says you only get 10 hours a month of deferred payment, the rest is due and payable immediately!” I said, but I didn’t ask you to work more – you are the one adding up the time in my office!

I told him that there was no way our company could pay him that kind of money…he then added the travel expenses to Seattle and his week’s worth of expenses for being here – which I never invited him – he said he is here 1 week a month and handed me a bill for $12,000+ ! …so, I said, “no.” He immediately began threatening me. He said, “I can ruin you with one phone call.” And also, “I can ruin this company easily…” And, of course he continued to demand payment. I told him to leave and finally after telling him I would pay the bill net 30, he left. I of course immediately called my attorney and a letter was written demanding our retainer back and he’s gone. But that is not without going to my Board (and I’m on the Board—dah--I don’t think he even read our business plan) saying that he was sure I was involved in some impropriety and it was their judiciary responsibility to investigate…anyway, long story short – all is fine and we only lost a week or two from distraction on the deal and a $5,400 retainer.

But, I want to protect others. It is not fair that this predator comes in, builds trust, and then when you have geared yourself to go to do presentations to his contacts in the VC world, he asks for more money, “or else.” This other company I know had it happen to them and they gave him money several times…to the tune of $30,000. Larkin even wrote them a business plan and charged them $12,000 for it, without ever getting permission. It’s very subtle – you think it’s all coming together – and then WHACK.

So, my question, what can I do to stop him? I would like to file something. Or Blog…or??? He is a criminal of the worst kind, preying on vulnerable, emerging companies that have a little money to go the next step and then he rips it off.

On-line capital

Velocity — Tue, 28 Mar 2006 15:05:42 GMT

Hello,
I'm new to this group/forum. I'm an entrepreneur, and I am starting up a company here in Illinois. The first part of this adventure was great, as that was the invention part. I have now turned into a full time fund raiser. I would like an opinion regarding "FundingPost".com. Is it legitimate, does it work, for whom would it work best?

Thanks
Velocity

Looking for investors or angels

thomas.anderson43 — Thu, 26 Jan 2006 13:05:21 GMT

I'm seeking angel or investors to help me to get my company off the ground, I am the first deaf business owner in this type of business, as matter of fact, it doesn't matter but it's the diffuculty that I'm going through because I had to rely through relay service to communicate hearing world which is very tough, due to tons of hang ups, so I'm trying to find someone to put money in my company to get it off the ground, I built the company from scratch in 2003 and am ready to expand but I don't have funds to do so. I've spent thousand of dollars on finding investors, angel investors and so forth, with no success. I would love for someone step in and I'll prove that the company would be profitable since I'm using the "Lower Billing and Higher Nurses Pay Rates" which I've researched and compare to other agencies. I have beautiful business plans and executive summary. But it's not getting me anywhere, NEED YOUR HELP!

How to raise angel funds to found China-base Firm?

puchengboya — Fri, 21 Apr 2006 21:14:48 GMT

Dr.VC.

I wanna know which web site is for entrepreneur to raise angel funds.And it could help to found Chinese firm.Could you introduce a few.Now I've got a biz idea and that's just an idea,I want to compare notes with risk capitalists about this biz idea,maybe some VCs will like.

Thanks for any help.

Need understanding..........

Jason S. Flournoy — Mon, 17 Apr 2006 21:56:36 GMT

I have already finished a Business Plan. I have been working to find VC, however I have not been able to find the correct VC. I am attempting to create a Country & Western dancehall in the Texas area. Does anybody know where to I could start looking. I need 600,000 to complete the project. I have tried goverment loans and grants to no avail. I have already looked into Area Business inprovement projects aswell. Any help would be great.

A new approach to an old problem

Nonni — Tue, 21 Mar 2006 15:10:30 GMT

Hi again

Some teenagers and young people suffer from a problem caused by ACNE. This normally starts when puberty sets in and can continue for 20 years from then on.
The ACNE infection is a bacterial based troublesome highly visual problem that often affects people negatively and the treatments are most often costly and long term. Both are difficult to master as money tends to disappear to other needs when you are in your teens and mom and dad have enough bills to pay any way you look at it. A bad circle or a "loop" has emerged.

What if there was a way to both treat this dilemma and get away with it much cheaper then known today.

I need the kind of help from you guys that would help this further from my doorstep.

I have the product and how it is packaged but I need the distribution and partnership of good people in this.

How do all you merry men suggest I go from here.

A possibility is to approach highschools and gymnasiums in citys and towns with a presentation and lecture on the problem and it´s essens and with the solution/remedy/help as noone is interested in starting a marketing campagne on an empty belly. I mean without much money to spend on marketing.

A factory to provide with raw material would cost less then a million dollars to build fully equipped.
Each package would cost less then 3 $ to manufactor.
Each package would last 5-6 weeks of dayly use.
Each customer would be expected to use 9 such a year and the problem lasts normally for 10-12 years or more.

Comparable packages on the market cost 25 $ or more.

It would seem easy to find a key solution to this possibility but thus is not the fact.
Help me find the right way.

regards

Nonni