Wednesday, July 14, 2010

Where can I find Investors for my new online internet start up Company?

I have just recently filed for a DBA, and I have just started writing 2 separate business plans, generally the same idea but different themes. I think this could make a lot of money , and the return would greatly outweight the costs. These websites would generate profit through online advertising and a select few services we would provide to the user, but in order to build these 2 individual websites, I would have to put forth about 100,000 dollars worth (rough estimate), which would include all start up costs and etcs. After I have finished with the business plans, I will be in pursuit of investors? Where should I look for them? How should I contact them? Should I contact any specific ones that are interested in the internet?





Thank You.

Where can I find Investors for my new online internet start up Company?
You may want to go and pitch your ideas where investors gather. Here are some places where angel investors come and those looking for funding can come and pitch their business plans. Be sure to have a strong business plan and describe what makes your business idea stand apart:





Angel Capital Association http://www.angelcapitalassociation.org


Angel's Forum http://www.angelsforum.com


Band of Angels http://www.bandangels.com


Common Angels http://www.commonangels.com


Keiretsu Forum http://www.k4forum.com


Launchpad Venture Group http://www.launchpadventuregroup.com


New World Angels http://www.newworldangels.com


New York Angels http://www.newyorkangels.com


Prairie Angels http://www.prairieangels.org (charges $125 to submit idea)


Robin Hood Ventures http://www.robinhoodventures.com (charges $250)
Reply:You're really jumping the gun here. At this stage, you're going to have to have at least a prototype of what you're thinking of doing ready and working prior to getting anyone from the outside to invest. There are a lot of venture capital firms that you can get ahold of, but you'll have a difficult time getting money out of most of them. To get a listing of them try the 'Venture Reporter', which is an online publication available (i believe) thru the Wall St. Journal.





Not only are you going to have to put together a full business and operational plan, but you're going to have to illustrate how the investors will get their money out at some point. Also, you're going to have to be prepared to have someone else tell you what to do, you will lose control of the company by bringing in someone very early.





Source - I used to raise money for internet startups in the 90s. Total time in the dotBomb world = 12 years.


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