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Need to raise about $150k for a startup company.

T

TechBoyJK

Lifer
I'm working on a startup company. We recently turned down a $1.75million investment due to the terms being too far overreaching, and we were only seeking about $150-$200k.

Over the next couple of months, I have many opportunities to sit in front of investors and venture capitalists. I am a client of a Washington University Business Incubator and members of several Investment groups.

I haven't been too aggressive with raising the funds since there is alot of work we are doing that doesn't require the money, but it's nearing a point that we do need the cash.

I'm completely ok with getting our pitches back in good shape, putting on a suit, and making the rounds with all my investment leads, but I'm tempted to start with having my local newspaper (circulation of about 50,000) basically do an article about the startup and we are needing money. They've put me on the front page of the Business Section for various deals and projects about 6 times already, so I'm thinking I have a freebie to basically take out a full page ad to announce that we need money.

Any ideas on the best way to approach this? I'm going to seek council from the Incubator, etc. but I always seem to get some sound ideas out of this place (even if it means sorting through a high ratio of trolls).


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Locked due to the thread going downhill

Senior Anandtech Moderator
Common Courtesy
 
pitch it to us something, there may be an investor here 🙂

or at least tell us what you type of business you are starting!
 
Originally posted by: TechBoyJK
I'm working on a startup company. We recently turned down a $1.75million investment due to the terms being too far overreaching, and we were only seeking about $150-$200k.

Over the next couple of months, I have many opportunities to sit in front of investors and venture capitalists. I am a client of a Washington University Business Incubator and members of several Investment groups.

I haven't been too aggressive with raising the funds since there is alot of work we are doing that doesn't require the money, but it's nearing a point that we do need the cash.

I'm completely ok with getting our pitches back in good shape, putting on a suit, and making the rounds with all my investment leads, but I'm tempted to start with having my local newspaper (circulation of about 750,000) basically do an article about the startup and we are needing money. They've put me on the front page of the Business Section for various deals and projects about 6 times already, so I'm thinking I have a freebie to basically take out a full page ad to announce that we need money.

Any ideas on the best way to approach this? I'm going to seek council from the Incubator, etc. but I always seem to get some sound ideas out of this place (even if it means sorting through a high ratio of trolls).
Click to expand...

Which local newspaper was that, again?

As for needing funds, you're saying you've got opportunities to fit in front of investors already. What's your question?
 
Hi!
I have a spare 150k in my checking now, so please post a pdf of your business plan here so that I can have a look.
 
Shoot off a Twitter message: "Startup company in field of ____ looking for #investors - we're based in #nameofyourcity, give us a shout"? It's extremely quick, cost-effective and might lead somewhere.

Edit: Not that I believe you had any such offer or even a viable business plan, especially now that I read that "executive A+ training business" idea. I can't think of anything the execs I know would want less than to waste time on learning how to install RAM in their computers instead of having some peon do it while they're out at lunch. But I'll post my contribution for the sake of others who may read it.
 
I thought your business was already off the ground and you were going to be a millionaire.

It's going to be hard in this economy to find an investor, but if you are serious you need to let people know what they are investing in.
 
Originally posted by: tk149
Is this the plan?

Ask this guy - he has $600K

or this guy - he has $6 Million

Posting from your cubicle?
Click to expand...

Actually,

The training business idea was something to do in the spare time, so that I could quit my current job, have the ability to earn income, and work on my startup company. This was so I could shoestring it along with my own cash rather than selling equity.

I was offered $1.75million for an investment in the startup, along with $500k cash. However, the terms weren't that great, and the most I probably would have ever seen was the $500k cash.

I own some really good domain names. We've been through this before, discussing it is off topic.
 
Originally posted by: Special K
Originally posted by: tk149
Is this the plan?

Ask this guy - he has $600K

or this guy - he has $6 Million

Posting from your cubicle?
Click to expand...

Haha, exactly what I was going to post. Why doesn't the OP just use the money from the last business he sold?
Click to expand...


I never sold it. My shareholders and I rejected the offer. So, in th meantime, we still need cash. As I stated, the "executive training" business idea was something entirely different, that I thought might make for good supplemental income so that I could quit my day job.
 
Originally posted by: alkemyst
I thought your business was already off the ground and you were going to be a millionaire.

It's going to be hard in this economy to find an investor, but if you are serious you need to let people know what they are investing in.
Click to expand...

No, it's not off the ground. There's been about 7 years of development with IP assets (intellectual property). The last deal I turned down was an investment of about $1.75million and a cash payout to me of $500k. This was all done on a company valuation of just under $6million, which is where the $600k for $15% came in. It ended up being $500k for about 10%, plus 35% for the $1.75million, but in order to take the cash there was a vote sharing clause that we couldn't get on board with.
 
Originally posted by: TechBoyJK
I never sold it. My shareholders and I rejected the offer. So, in th meantime, we still need cash. As I stated, the "executive training" business idea was something entirely different, that I thought might make for good supplemental income so that I could quit my day job.
Click to expand...

who are your shareholders? Your mom and dad that lent you some money?

I really think their is no chance in hell you'd get a buyer here with your intent to liquidate right away it seems.

 
Originally posted by: Lothar
Originally posted by: tk149
Is this the plan?

Ask this guy - he has $600K

or this guy - he has $6 Million

Posting from your cubicle?
Click to expand...

:laugh::thumbsup:
Click to expand...

Read my replies. These guys are clever at framing up the fact that I work a day job to support myself, was looking to start something on the side that that would supplement my income, all while I had a startup company I worked on in my spare time that had already seen some significant interest.
 
Originally posted by: alkemyst
Originally posted by: TechBoyJK
I never sold it. My shareholders and I rejected the offer. So, in th meantime, we still need cash. As I stated, the "executive training" business idea was something entirely different, that I thought might make for good supplemental income so that I could quit my day job.
Click to expand...

who are your shareholders? Your mom and dad that lent you some money?

I really think their is no chance in hell you'd get a buyer here with your intent to liquidate right away it seems.
Click to expand...

I have about 19 shareholders who collectively invested about $245k so far. The last deal I turned down was from a set of investors who wanted to take it over, and flip it to their other business associates. I'm not in a hurry to liquidate, which is why we rejected the last offer.
 
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