Deciding how to fund a VERY good idea

[jaquex]

Hey guys,

I've only been on the forum for a few days now, but really love the community and everything there is to offer.

Anyway, blahblahblah, the topic at hand. I have a very creative, yet simplistic, and almost obvious idea for a service to offer as a website right now, and have begun a white hat marketing plan, with my partner, to grow the business quickly.

It is a combination of education and the internet, is very simplistic, is free for users, and will essentially only need funding for an EXCELLENT website (though it is simple, I am speaking of the graphic design aspect) and app's, then a much bigger amount of money to fund advertising in a quick campaign.

The idea will pick up quickly and users will definitely spread the message for us, so it isn't a huge issue, but we do need to get the idea out there across the US.

My predicament comes with how to invest. My three options right now seem to be pitching to an Angel Investor (I have a good one in mind), using Kick Starter, or finding enough people to do a joint venture. I believe we will need somewhere in the 30,000 range to do this successfully in a completely legal, ethical, publicly acceptable manner (LOL).

With all of that being said, what do you guys think? Thanks for any help!

 

[sgmoney]

Not familiar with Kickstartr with novel ideas. My question for you would be if it's such a simple idea, are you comfortable putting it on a platform where someone else could just run with your idea?

With the Angel Investor route at least there's understanding that they will not take the idea and shop around for someone else to implement it.

A great idea is one thing, finding others who believe and share in the idea, I believe, is what sets apart truly great projects. Of course funding doesn't hurt either but passion can go quite a long way.

Perhaps it's just me, but if it's that great a project I would first approach friends/family before offering it elsewhere.

 

[jaquex]

Not familiar with Kickstartr with novel ideas. My question for you would be if it's such a simple idea, are you comfortable putting it on a platform where someone else could just run with your idea?

With the Angel Investor route at least there's understanding that they will not take the idea and shop around for someone else to implement it.

A great idea is one thing, finding others who believe and share in the idea, I believe, is what sets apart truly great projects. Of course funding doesn't hurt either but passion can go quite a long way.

Perhaps it's just me, but if it's that great a project I would first approach friends/family before offering it elsewhere.

I forgot to put that in my thread, haha. That's my exact issue with putting it out in the public.

I have considered approaching family, but I really don't have all that wealthy of a family, and I spent most of my life in a rather low income area (south LA). I do wish I had someone I could go to with the idea to come up with the funding that I knew I could 100% trust, but unfortunately, I do not.

For the Angel Investor, do you know if it would be generally acceptable if I were to request a form of consent stating we were presenting the idea and have both sides sign prior to the presentation that it belongs to us, and unless he chooses to fund us, he has no rights to it?

 

[calebmann]

create a stock... lol

 

[xollls]

Angels do not just hand over money just for an idea (ideas are a dime dozen), you will need to build an MVP to prove your concept to them.

I understand you are trying to protect your idea but Angels/VC's will not sign nda's. They are not in the business to steal ideas, most are good. I know you believe your idea is unique but chances are they have been approached with a similar idea.

 

[jaquex]

create a stock... lol

If I was a more established businessperson, possibly. Hahaha.

Angels do not just hand over money just for an idea (ideas are a dime dozen), you will need to build an MVP to prove your concept to them.

I understand you are trying to protect your idea but Angels/VC's will not sign nda's. They are not in the business to steal ideas, most are good. I know you believe your idea is unique but chances are they have been approached with a similar idea.

I am well aware. We are building a strong pitch currently, and I have an Angel in mind.

That helps a lot, actually. I am completely open to not forcing the issue, but I just needed some reassurance I'd be safe. It seems like the general agreement is it is highly unlikely my idea will be stolen, so I think this will be the plan of action.

As for my idea likely being pitched to them, I know it hasn't. There is no other service like this available currently, and I've been researching it for about six months. The idea is very unique, and I fully believe, along with those I've shared it with, that an investor will be interested. The market is there, I just need to determine how best to get things moving.

 

[mudbutt]

You will not get funding if you do not have

1) track record of building successful businesses
2) awesome management teams
3) skin in the game

Investors do NOT hand out money simply because one has a good idea. They make calculated risks and without a proven track record or solid team behind you, the risk would be too great, no matter how great the idea is.

 

[jaquex]

You will not get funding if you do not have

1) track record of building successful businesses
2) awesome management teams
3) skin in the game

Investors do NOT hand out money simply because one has a good idea. They make calculated risks and without a proven track record or solid team behind you, the risk would be too great, no matter how great the idea is.

Which was my belief. We have some background, but nothing extremely extensive.

What is your opinion on something like Kick Starter?

 

[mudbutt]

No experience with kick starter. If I were you, I'd bootstrap the entire thing and outsource v 1.0, acquire customers, data, etc, before you start looking for outside funding. Not only would it be easier to get funding to expand, youd be in a way better position to negotiate the terms. Pitch the idea to your close friends and parent, save every dollar you get and find a decent coder on elance.

 

[twmade]

I'd be careful with kickstarter if I were you. There are many great, funded projects from kickstarter, but if your idea is really as great and simple as you say it is, there is nothing stopping people with greater resources simply running with your idea before your project even get funded. Remember, people on kickstarter also needs you to present to them a viable strategy for return (plus you need to offer them incentive for larger donations). Basically means you also have to throw your idea out there. Having said that, I've seen MANY successful projects off kickstarter, albeit admittedly, most are Production projects and not many "idea" projects. PM me if you want to talk more.

 

[jaquex]

No experience with kick starter. If I were you, I'd bootstrap the entire thing and outsource v 1.0, acquire customers, data, etc, before you start looking for outside funding. Not only would it be easier to get funding to expand, youd be in a way better position to negotiate the terms. Pitch the idea to your close friends and parent, save every dollar you get and find a decent coder on elance.

This definitely may be the best option, thank you very much. I am strongly considering running with it on my own. The only hesitation I have is the potential we see here, my partner and I (I am a marketing major, and he a finance major), that we want to jump at haha. Our biggest times of activity will be around the beginning and end of school semesters, so I'll definitely have to put off a major push until at least next Spring, rather than this Fall. We are acquiring data on those interested currently, as I have a large pull online and have gained about 1,500 fans in the first week of opening it, with about 2,300 'talking about this' on Facebook currently. We're utilizing that data and making comparisons to other websites who currently harbor similar a similar targeted audience to determine likely profits. One of the biggest opportunities with this is selling the company, as most people do, because we will greatly damage a specific industries revenues if we do become successful.

I'd be careful with kickstarter if I were you. There are many great, funded projects from kickstarter, but if your idea is really as great and simple as you say it is, there is nothing stopping people with greater resources simply running with your idea before your project even get funded. Remember, people on kickstarter also needs you to present to them a viable strategy for return (plus you need to offer them incentive for larger donations). Basically means you also have to throw your idea out there. Having said that, I've seen MANY successful projects off kickstarter, albeit admittedly, most are Production projects and not many "idea" projects. PM me if you want to talk more.

Thank you SO much. I was definitely looking for someone with some Kick Starter experience and I will be messaging you.

You're picking up exactly what I'm getting at. I am worried about throwing the idea out there, because I 100% know right now that all this will take is some funding for a good website/app's and advertisement. I know most of you will doubt me, but I do strongly believe in this idea.

We have strong data on the likely returns, as well as developing data on likely valuation of the company if we receive the funding we need to make it successful, so we have a fairly good idea with the numbers. We'll just need to weigh the risk of letting it out there in the public. I mean it when I say no one else has this idea out there right now, or they at least haven't utilized it.