Has Anyone invested in a start-up Company?
- Thread starter rmani
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Number9
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Yeah, I've invested in private companies but right now, there's not a lot of interest in seed-round investments. Too many folks have been burned recently as you must know. VCs and even some angels typically want to see something past concept and into implementation before they'll bite.
Don't forget customers!
In today's funding climate you will not even get appointments with VCs unless you have solid customer traction. It's a prerequisite now, unlike the go-go bubble days.
Good news is that right now is the best time to launch a startup, as ironic as that may sound.
Hey Number9, I am getting to know all those Sand Hill Rd. addresses quite well as of late
In today's funding climate you will not even get appointments with VCs unless you have solid customer traction. It's a prerequisite now, unlike the go-go bubble days.
Good news is that right now is the best time to launch a startup, as ironic as that may sound.
Hey Number9, I am getting to know all those Sand Hill Rd. addresses quite well as of late
Number9
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Originally posted by 8000RPM:
Don't forget customers!
In today's funding climate you will not even get appointments with VCs unless you have solid customer traction. It's a prerequisite now, unlike the go-go bubble days.
Good news is that right now is the best time to launch a startup, as ironic as that may sound.
Hey Number9, I am getting to know all those Sand Hill Rd. addresses quite well as of late
Very true about the customers. BTW, if you do something in EDA, we can talk. Our corp VC fund still has several million to invest. BTW, I've also spent quite a bit of seat time at 3000 Sand Hill Road over the years, but much less lately. Heck, they even cancelled the Sand Hill Road Challenge (an infamous local soap box derby charity event) this year!
[This message has been edited by Number9 (edited 15 September 2002).]
Number 9:
This isn't a backdoor operation it's real, and a solid one I might add. As far as customer sales the product that's planning to be sold is already sold out for the next few years with contracts renewing on most of them after the three years. The orders have already been placed (signed contracts), and thus the company is probably one of the safest bets in today's market. Would you be interested to speak further? Shoot me out an email: [email protected]
If you really are interested in solid investments gimme five minutes of your time, if you don't like it no biggie, however I think you will be pleasantly surprised.
This isn't a backdoor operation it's real, and a solid one I might add. As far as customer sales the product that's planning to be sold is already sold out for the next few years with contracts renewing on most of them after the three years. The orders have already been placed (signed contracts), and thus the company is probably one of the safest bets in today's market. Would you be interested to speak further? Shoot me out an email: [email protected]
If you really are interested in solid investments gimme five minutes of your time, if you don't like it no biggie, however I think you will be pleasantly surprised.
These are amazing customers. Are these corporations or consumers?
They must have a lot of faith in your friend to agree to buy a product that's still in the planning stages... and at the same time commit to renewing the contract three years later.
If this type of spending keeps up, the economy will recover in no time!
BTW, if I ran a company that had a product that's already sold out for the next few years, I would shun VC/Angel funding at all costs.
Why give away equity to outside investors when you've got customers willing to fund your growth and survival over the next few years?
Yes, If that's the case even a lowly bank would be willing to get involved.
-Jim
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1992 NSX Red/Blk 5 spd #0330
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-Jim
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1992 NSX Red/Blk 5 spd #0330
1991 NSX Blk/Blk Auto #3070 (Sold)
1974 Vette 454 4 spd Wht/Blk
http://homepage.mac.com/jimanders/PhotoAlbum1.html
Must be due to the fast disappearance of those monster billion-dollar funds...
These are corporations willing to buy the product becase my friend hold's the patent to the production of the chemicals he's selling, he developed them when he worked as a chemical engineer for another company, but now has decided to pursue his own business. The corporations (his biggest buy was also his former employer) know him and know the product is good (as long as we can get the funding to begin production). Because of the rather good outlook of this business, the banks are willing to let him finance most of the company on debt, but not all of it, and that's why we are seeking investors looking for a solid investment with good returns on their investments. Nothing is guaranteed in a start-up business, but this is as safe as you are going to get, it's simply that good. If anyone is even remotely interested I'd be more than happy to email a business plan.
Sounds exciting! Best of luck to you and your friend.
I respect and admire all those who throw caution to the wind and choose to follow an entrepreneurial path.
BTW, I am very surprised your friend's former employer didn't claim the intellectual property rights to his patent since technically your friend developed the technology while still being employed by them.
I respect and admire all those who throw caution to the wind and choose to follow an entrepreneurial path.
BTW, I am very surprised your friend's former employer didn't claim the intellectual property rights to his patent since technically your friend developed the technology while still being employed by them.
Very good insight (and eye) 8k.
yeah, a number of years ago, about 30, a relative of mine developed several chemicals as well as a process that became the standard in agricultural feedstuffs industry.
he received a token amount in return as his acheivements were accomplished under the umbrella of his employment.
pretty cool that your friend is able to personally reap the benefits of his efforts.
he received a token amount in return as his acheivements were accomplished under the umbrella of his employment.
pretty cool that your friend is able to personally reap the benefits of his efforts.
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