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I have a very good idea but I am scared to death of submitting my idea to venture capitali

Discussion in 'Joint Ventures' started by dizen, May 4, 2012.

  1. dizen

    dizen Regular Member

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    Hi Folks :),

    I have an idea that I think is very good, in fact I never seen this idea implemented on the Internet ever.

    My idea is very good . I am pretty confident about it, so condifent about it that I am willing to risk my last valuable asset, a house that is currently priced around $250.000 - 280.000 based on market price. Venture capitalist can take my house if my idea doesn't make the money and I am willing to sign a contract for this clause before a lawyer.


    Why I Am Scared To Submit My Business Plan To VCs
    =================================================
    - My idea is very good, again I never seen this idea implemented on the Internet ever. The thought of the VC stealing my idea without supplying funding for me is very scary to me. I don't want someone to steal my idea.
    - I live in Jakarta, SE Asia, there are a lot of VCs here (even in third world countries, $500.000 is a miniscule amount of money for a VC, really) but most of them are VCs for offline businesses that don't want/not interested in funding a dot com startup company.
    - There is no lack of dot com VCs in US. However due to geographical barrier . I don't think they will be very interested in my proposal since I don't live in US.


    There must be one of you here who is a VC or have experience in getting funding from a VC.
    How do you guys get funding from VC? and don't you feel scared at all if the VS steal your ideas?
    I really want to submit detailed, professional business application with graphs, revenue projection etc to VCs but again ... I am scared to death about my idea being stolen. This is a dillema for me.

    What is your opinion on this ?


    Why I Need Venture Capitalist:
    ===============================
    - My wife will never let me to sell the house. If I am still single, I will sell it without hesitation just for this project, however If I can get a VC to fund my project with my house as a collateral, I think I can get her to accept it but I want share of at least 51%. Why? Because it's my idea and I assume equal risk as the VC plus I will do most of the work, so it is just natural for me to ask a stake of 51% or more.
    - Even If I sell my house , say $ 250.000,- . It is still not enough because I need $ 500.000 of money in total for safety net and unexpected things (worst,pessimistic scenario)
    - The cost of making the site is not expensive , however the marketing/promotion part of it will be expensive plus I can't do it alone. I need a team of several professionals working under me.
    - I will have someone that expect a progress report from me , this will help me to stay focused on this project.
    - A partner with solid experience is preferred so that his experience/skill sets can complement mine.

    About Me :
    ==========

    I started my career as web programmer back in 1996 and as a full time IMer since 2000 (No big deal at all).

    I built several successfull authority sites that is growing consistently without much efforts from my side, made decent income from them until I sold them for 30x monthly revenue (again nothing biggie about this) and plunge all the money into US and Asian stock market back in 2008-2009. This is the biggest mistakes of my life that I trully regret.

    A thread about my situation still can be found in a trading forum.
    http://www.traderslaboratory.com/fo...laboratory/5790-desperately-seeking-help.html

    I thought I was smart, I keep saying to myself trading stocks is very simple compared to object oriented programming, RDBMS and other technical tech stuffs.

    Boy, I was wrong, technical analysis is one of the pillars of stock trading but stock trading is not a science.Pyschology plays very great role in stock trading, but then again who would ever think that 2008-2009 are the years of one of the biggest financial disaster in wall street history? Before 2008, trading gurus, economist, experts were all optimistic about the stock market.

    So, again what do you think?

    There must be one of you here who is a VC or have experience in getting funding from a VC.
    How do you guys get funding from VC? and don't you feel scared at all if the VS steal your ideas?
    I really want to submit detailed, professional business application with graphs, revenue projection etc to VCs but again ... I am scared to death about my idea being stolen. This is a dillema for me.

    What is your opinion on this ?

    Thanks
     
  2. hamish11

    hamish11 Regular Member

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    Dizen, you need more than an idea to get VC here in the US. You need to have a well thought out business plan that shows exactly how you are going to monetize the idea, with financial projections going out 5 years. Patents are always good to have. If you are worried about the VC ripping you off, have them sign an NDA and Non Compete contract. Good Luck.
     
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  3. audioguy

    audioguy Power Member

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    Location:
    Anywhere in the world building WP sites.
    If starting your site is not cheap, create a prototype, and get people to it. Once it is proven and it's in the black, and you can prove it is scalable, the VC will chase you. You might want to read "The Lean Startup" for ideas on how to build a frugal startup and focus on the right things instead of funding from the start.

    Change your mindset. Thousands of people think their ideas are excellent. But ideas are dimes a dozen. It is how you implement, manage, and profit that count for those VCs.]

    When you don't have any proof, your projection is nothing more than prediction. That's so 80s or 90s.

    Watch some of those Shark Tank episodes may help you see from the right perspective.

    (I'm also an Asian).
     
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  4. krayzietalent

    krayzietalent Junior Member

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    This. Everyone has a "good" idea, but many fail to execute the idea. If the cost of the site is <$1,000+ have it built and drive some traffic to it (using social marketing, and SEO) and when you've got some members/customers, then you can make a business plan about how you plan to scale, why they should fund your operation, etc.

    In short, show them that YOU think the idea is profitable first but working to build it up without the assistance. Once you have a working model, getting a VC to invest will be alot simpler.
     
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  5. dizen

    dizen Regular Member

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    Thanks guys ...... make sense .. you all are correct ... I think I should make the site first ..
     
  6. ahiddenman

    ahiddenman Elite Member

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    Even if you wanted to get a VC on-board , Just approach a Reputable VC and have them sign a NDA etc :)

    There are ways and means around that though.
     
  7. helpnub

    helpnub Registered Member

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    Do NOT Sell House or Throw it Into the Deal !

    VCs are vultures end of day, so yes you may have your ideas stolen however your options are:
    - Don't tell anyone, definitely make nothing.
    - Tel someone, maybe make something

    A VC once told me 'You need to appeal to my greed glands. I don't want 10% or %100 profit start at 1000%+ profit and then I may be interested' .... good luck.
     
  8. kaloqq

    kaloqq Junior Member

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    How much money you want? Couple of millions? Generally if you don't want to chip in then just make the site and start promotion alone and when after a month or so you see the results, then get someone to invest and you will give him a share of the company. That way if you failed you don't have to sell your house. I have some connections with Chinese investors from Hangzhou and that is how they work. Good luck and follow your dreams :)
     
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  9. darkeggx

    darkeggx Regular Member

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    DONT share your idea until is it PATENTED. Then go from there.
     
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  10. NoirHat

    NoirHat Regular Member

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    yeah my thought too..
    how much money do you NEED for a website idea?
    There are ways to get funding by just offering shares of the company, people pitch in and get shares based on how much they give.

    no need to attempt to become a master trader when you can easily piggy back proven vetted traders...why bother doing it yourself
     
  11. srb888

    srb888 Elite Member

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    Plenty of water drops can make a small pond, plenty of small ponds can make a lake, plenty of ... an ocean.

    You said you were creating great authority sites --- so why don't you make money using those proven skills? Plenty of scope in creating money-making sites (you don't need an authority site here; just a site which will appeal to your visitors / customers); sites which can sell handsomely; some sites can make huge amounts of money for you; sites for local markets; CPA-specific sites; and so on.

    It will take time to make lot of money using this, no doubt about it, but you'll be stepping ahead confidently because you have the experience.

    Finding a great VC, especially when you do not have foolproof success plans and models to convince them can be a disaster in the making -- unnecessarily at this time; and they can rip your project from under you because you display extreme rawness... Think, would you invest half-a-million in a project half/quarter/10% full of loopholes?

    So it would be wise to make that money -- or a part of it -- on your own first, and when you are approaching the target amount, you might find that VC as well. Success Attracts More Success, isn't it?

    So Don't rush into finding a VC blindly... IMHO, the Home and a great Wife are something which should NEVER be risked for any amount of money...

    God Bless & GL to you, and make your millions soon! :)
     
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    Last edited: May 5, 2012
  12. VinBed

    VinBed Regular Member

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    VCs are very interested in seeing that you'll actually be able to execute the plan. You need the plan and very specific details on how you will accomplish everything. Having been through this process myself, it's quite time consuming - but worth it. You can't be afraid of having your idea stolen. It's a lot easier for a VC to simply invest in a person they believe can pull off the venture than doing it themselves, especially if they lack the resources you have.
     
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  13. mhatter

    mhatter Regular Member

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  14. unknownn

    unknownn BANNED BANNED

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    First of all try doing as much as possible yourself before contacting any VC.If somebody is going to steal your idea you still will have an amount of time advantage.
    Next you could use social loans instead of VC's.Social loans are private people who are loaning money for a yearly % (arround 7-20%) and since you got assets as security it wont be difficult to find some.

    However i would be very careful in investing such an amount because there could be many hidden mistakes in your thinking or knowledge.A mistake could ruin your life.

    If you want a really easy solution for indian people to get funds you can pm me but remember you are taking all the risk and not sharing with a trusted partner/knowledgable person is very risky as people dont see very often their own mistake in thinking when keeping it secret
     
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  15. AdisLCS

    AdisLCS Power Member

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    First I would like to wish you all the best and encourage you not to give up. Before anything we might want to get the wording straight here. Venture Capitalist Firms are dealing with hundreds of millions of dollars, not thousands. There might be slight chance they would get involved in smaller amounts in early stages as seed money, but that is to follow large sums. You may be looking at angel investors, bank loans, friends and family to get things up and running.

    You are right, here in US, especially here in Silicon Valley, there are plenty of investors willing to put money in DOT coms. However, getting funding is one thing but maintaning, growing and operating a business is another. Keep in mind is that you will loose control over the project/business/model. For many its OK to get bought out, but for others its not.

    I am sorry to say but unless you have quite some money for proper paperwork ( and there is plenty of paperwork needed) or have direct human connection to Investors it will be very difficult to get funding.

    At the same time that might be a good thing and you may get encouraged to think outside the box, get more innovative and create leaner more efficient models.

    In closing statement I will align with fellow posters and encourage you to create a small scale functional operation, proper documents, including business and operation plans and models and of course non compete, non disclosure etc.

    But you never know, you said you were in stock trading? Many here know Yelp, yet few realize that Yelp is crappy non sustainable, non profitable business. As matter of fact they are/were loosing millions $$$ each year, for years and never ever turned profit, yet they managed to get funding and Even get a OK IPO and go public. What a country :). So good luck
     
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    Last edited: May 6, 2012