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Investors Need. Question?

Discussion in 'BlackHat Lounge' started by biginch, May 9, 2010.

  1. biginch

    biginch Regular Member

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    Hey,

    I came up with an idea/business in which I would like to create and establish. I shared with a friend of mine and thinks it can be very huge. It will stop credit card fraud by 100% if not 99%. Its big and revolutionary.

    My problem is funds. It wouldn't be a couple 1,000 to get started. I am thinking well into the 7 figures. My question is does anyone know of the proper ways to approach investors, also where to find them?

    Anyone with experience i would appreciate it.

    Thanks,

    Inch
     
  2. g111k

    g111k Regular Member

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    Do a search for local angel investors, they won't take you seriously without a full-out business plan though... also make sure everyone signs a confidentiality agreement with you before they even see the proposed business plan.

    Try to meet and get to know a couple of them first, before going into any details, just to get the feel of the whole process and such.

    Be prepared to give up a majority stake or a reportedly high interest rate though... but if you don't look like a joke and can put a serious business plan together, you're very likely to get the money you need
     
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  3. Whisker

    Whisker Moderator Staff Member Moderator Premium Member

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    As of now you only have an idea, which is seed stage capital. Investors are going to want to see a business plan with these general things at the very least:

    Executive Summary
    Mission
    Company Overview
    Legal Business Description
    Strategic Alliances
    Product
    Current Product
    Research and Development
    Production and Delivery
    The Market
    Market Definition
    Customer Profile
    Marketing Plan
    Sales Strategy
    Distribution Channels
    Advertising, Promotion, PR
    Competition
    Risk/Opportunity
    Management Team
    Capital Requirements
    Exit/Payback Strategy
    Financial Plan
    Assumptions
    Financial Statements
    Conclusion
    Exhibits


    I would start taking steps on the technology and protecting your intellectual property if it's actually worth pursuing, because if the credit card companies find out and it's an alteration they can manage they'll just do it themselves removing you from the picture.
     
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  4. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP Premium Member

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    I would also looking into getting copyright, Trade mark, and a patent on your item. You will need the above items to get this all done. But I would do this first before going out and putting your ideas on the market. If you think they can be that big. I would protect myself first before I start sharing too much info.

    IMO

    Billsboardonline
     
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  5. biginch

    biginch Regular Member

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    Thanks for the response. We are actually going through a business plan setup. I know it is more work then it seems, but to effectively do this I understand.

    I might actually have a big wig lawyer in LA checking in with it... Soon ill know.
     
  6. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    I 've done this a couple of times and I will only say this:

    Prepare for a lot of work. Or outsource. But this is risky.
     
  7. netfish

    netfish Junior Member

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  8. shaunpollock2008

    shaunpollock2008 Junior Member

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    outsource=risk.
    i agree