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My journey to raising 1 billion in venture capital funding

Discussion in 'My Journey Discussions' started by Vita21, Feb 22, 2015.

  1. Vita21

    Vita21 Registered Member

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    Hello everyone,

    Some of you may find this subject interesting...


    Please do not ask what my startup is or what my product does, i will not be sharing any details about my business.



    For this very first post I will provide a brief introduction to who I am and what my mission is.

    Fist and foremost, building a business is much more than money. My mission here is to create a product and a new market which people will love. In the process of doing this create a company valued at over a billion dollars.

    What is venture capital?


    If you do not yet know, i suggest spending some time browsing www.crunchbase.com to get an idea of the power behind "startups".


    I am an entrepreneur, like most people on bhw. I am embarking on one of the greatest journeys of my life through pursuing my startup as a full time job. As often as possible, i will try to provide updates to my progress of raising multiple venture capital funding rounds. My ultimate goal is to eventually raise a 1 billion dollar funding round starting from the ground floor.


    With any venture, first there is an idea and then a product is created. As most of you here are aware, The process of getting from idea to finished product is very difficult. With the product i have created, i am currently in the process of raising my fist round of finding known In the industry as a seed round. This thread will follow my journey through each and every funding round.


    I am deciding to share my journey to help inspire others to follow their dreams, to help keep myself motivated when things get tough, and to be a resource In this community to those with bright ideas.


    Month 1 completing tasks)
    Minimum viable product is ready.
    Significant market research and gathering customer feedback.
    Finalizing business strategies, plans, investor pitch presentations, product showcase, product pricing, staffing budget, milestones.
    Setting up meetings with local investors and angels.
    Apply for various incubator programs




    I will try to help answer questions as best as i can but do not foresee checking this post on a daily basis.


    If you have an idea which you would like to share please feel free to pm me.
     
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    Last edited: Feb 22, 2015
  2. prab1996

    prab1996 Elite Member

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    BTW, what type of product/company you want to start ?
     
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  3. Vita21

    Vita21 Registered Member

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    I sell swamp land in Florida
     
  4. Trepanated

    Trepanated Supreme Member

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    The fact your journey is about raising $1 billion in funding, rather than creating a business, says it all.

    Sorry, but it sounds like you have a pipe dream.

    By the way, if you knew anything about the VC industry, you'd know you have zero hope of getting $1 billion in the first round - unless your name is Peter Thiel and you have a stellar track record.

    Are you Peter Thiel?
     
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  5. Vita21

    Vita21 Registered Member

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    The mission is not about the money its creating a product people will love.
     
  6. Trepanated

    Trepanated Supreme Member

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    If it's about the product, why is your thread about raising $1 billion?

    You are in for a shock when you turn up at a meeting with a VC and ask for $1 billion - they'll be laughing all the way to the pub.
     
  7. lancis

    lancis Elite Member

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    Did I understand you right? You're looking for 1 billion valuation eventually? Or is it seed money?
     
  8. cataratas

    cataratas Junior Member

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    So this will be a $1 billion over a number of funding rounds? What is it about the business that makes it so cash hungry? Why won't the business be able to finance itself way before the $1 billion mark? How much equity will you have given away by the time you get to $1 billion?
     
  9. Vita21

    Vita21 Registered Member

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    No one has ever raised 1 billion in seed funding. I am taking about my journey into rounds d, e, f. Same reason why uber has raised multiple billion dollar funding rounds and my market is larger than uber.

    This thread isn't about how to create an amazing product, it's how to navigate the shark tank that i am currently in.
     
    Last edited: Feb 22, 2015
  10. Trepanated

    Trepanated Supreme Member

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    Without the product you will never get a cent in investment.

    You need to focus on getting your business off the ground to some degree before you look for investment. You either need users or revenue or both. Do you have either?

    If you can't do 'Step 1' you are dead in the water.
     
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  11. Vita21

    Vita21 Registered Member

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    Ive already raised a seed round.

    This post is not to discuss my business it is to discuss how to navigate the shark tank. A billion dollar restaurant isn't worth anything If it doesn't have any customers...
     
  12. lancis

    lancis Elite Member

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    How much did you get and what % of the company you own atm?
    Are you alone on this venture, or are there partners?
    Who was the seed investor VC or Angel?
    Did you fill a provisional already?
    Is it a software product or hardware is involved?
     
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  13. Trepanated

    Trepanated Supreme Member

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    A few more in addition to Lancis' questions:

    Was it from a VC firm or from friends and family? There's a huge difference.
    What are you doing with that cash?
    Is your business in the 'idea' or 'live' stage
    Has the business generated any revenue so far?
    What's the month on month growth rate?
    When will the seed cash run out at your current burn rate?
    What happens when the cash runs out?

    You say the focus is not on the business, but that's critical. Ignore the fundamentals at your peril.

    I'll tell you one thing about the investment community - they all talk to each other. If you present a half-baked, daft, or desperate idea to a VC, as you walk out the door, he is calling his mates and warning them about you. No more meetings.

    You should be focussing 100% on the business and how to scale it - you can't 'navigate the shark tank' unless you have first nailed that.
     
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  14. Vita21

    Vita21 Registered Member

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    Great questions guys!

    I am currently not able to disclose information about the funding round to the public. I can say it is angel and seed funding stage with my product. Proof of concept and market need continue to grow. Right now, the product is not available to the public yet until I navigate the appropriate legal hoops for protection. Para the business plan, early money will be used for staffing, development, marketing, and hardware so what we can open the doors to paying customers. I have a number of meeting this upcoming week to determine the final value of the round.
     
  15. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  16. Vita21

    Vita21 Registered Member

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    tiyowan Regular Member

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    mrleppy Regular Member

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  19. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  20. Vita21

    Vita21 Registered Member

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    No, thats not the project. I could raise some decent VC money for that project though if anyone wants to JV. I just don't have time.