I am wondering if anyone from NB has experience with obtaining venture capital?
Previously, I have not wanted/believed my project does not require VC, but have come to the conclusion I need to hire some developers and professionals to help with content.
While my site is making $0 profit at the moment, I am working extremely hard and am aiming for $5,000-$10,000 profit by the end of the year through affiliate programs and advertising. I am hoping to get VC funding somewhere around AUD$300,000.
Would appreciate your help if you if you know anything about VC or if you just want to give encouragement, feel free to do so.
I have just a bit of experience with VC's (Vulture Capitalists), and I may have more discouragement than encouragement.
- VC's tend to invest in projects represented by people already in the VC community. Outsiders (you and I) tend to get ignored.
- VC's these days tend to invest in project that are already showing positive cash flow -- by which time you don't really a need a VC.
- VC's tend to invest in projects which have the potential of becoming enormously huge -- which isn't likely for the web content business in 2009.
- VC's tend to demand a large ownership stake in the company, diluting the value of your share of the company. This is particularly true when they invest in businesses that are not yet cashflow positive.
- VC's tend to take a long time to recruit, which is time you could spend building your business instead.
VC funding is necessary for some projects, but I recommend other funding avenues if at all possible (self-funding, debt-based funding, angel investors, etc...).
Australia does seem to have a mature VC market though, which is a benefit that many communities don't have:
Yeah, your probably right. Instead of going to the hassle of finding VC (i.e. time and opportunity cost), I should probably keep persevering with my site. I am aiming to get it to 10K revenue as outlined above- to get it to 100K (cumulative) should not be too much of a problem if I can get the 10K in the first place.
I'm wondering why you need 300k to get 10k in revenue? You could flip houses in Phoniex with that kind of money :D
Bill Gates was able to buy QDOS, the "Quick and Dirty Operating System" for $50,000.
All it takes is a $1 and a dream.