1. This website uses cookies to improve service and provide a tailored user experience. By using this site, you agree to this use. See our Cookie Policy.
    Dismiss Notice

Venture Capital, Startups and Corona / Crisis

Discussion in 'BlackHat Lounge' started by Holdentot_Accfarm, Mar 25, 2020.

  1. Holdentot_Accfarm

    Holdentot_Accfarm Registered Member Marketplace seller

    Joined:
    Feb 7, 2020
    Messages:
    78
    Likes Received:
    12
    Gender:
    Male
    You are absolutely right about another twitch.
    The idea is not to build another twitch. The idea is to build a marketplace of content. Aggregate it and show across different platforms.
    For instance, there are Netflix, Amazon, Youtube and yet 300 other small and niche-oriented streaming platforms.
    We want to help people to choose the content they want to consume from the right place. When we have 300 different streaming platforms today this is quite a mess.
    There must be an easy way to find where is the needed content or creator. An easy way to compare streaming platforms, manage subscriptions and choose the best for you.
    Too much content, too many streaming platforms (game, music, video) and no aggregation or comparing tools for a content consumer.
     
  2. GringoMonkey

    GringoMonkey Elite Member

    Joined:
    Dec 26, 2013
    Messages:
    2,023
    Likes Received:
    1,533
    Originally you had only said this sentence: "startup related to Game/Movie streaming with MVP" Since I replied you expanded on this.

    From what I can see it has got worse, you want $200,000 for your salaries!

    So my answer would be "you guys build it, that shows your commitment to the project and when you have some user traction come back to me about monetizing and investment."
     
  3. Holdentot_Accfarm

    Holdentot_Accfarm Registered Member Marketplace seller

    Joined:
    Feb 7, 2020
    Messages:
    78
    Likes Received:
    12
    Gender:
    Male
    Yep, this is what we gonna do for 2020. Build it and market it.
    Then scale up.
     
  4. GringoMonkey

    GringoMonkey Elite Member

    Joined:
    Dec 26, 2013
    Messages:
    2,023
    Likes Received:
    1,533
    Great then do it, because you do not need any investment for your salaries. You work for free, build it then pitch when you have working tech for money to market.
     
    • Thanks Thanks x 1
  5. patriotnews

    patriotnews Supreme Member

    Joined:
    Oct 25, 2015
    Messages:
    1,437
    Likes Received:
    1,107
    Location:
    under there
    $200k? For what type of ownership? 50%?
     
  6. Mkl

    Mkl Jr. VIP Jr. VIP

    Joined:
    Jan 14, 2019
    Messages:
    107
    Likes Received:
    32
    Gender:
    Male
    Streaming sites are the most profitable right now. Why don't you try youtube?
     
  7. Jack Jericho

    Jack Jericho Registered Member

    Joined:
    Sep 13, 2017
    Messages:
    55
    Likes Received:
    23
    Gender:
    Male
    Occupation:
    Growth Marketer & Business Developer
    Location:
    Undisclosed
    It is possible, even in the current situation, to get funding before MVP, but why would you? You said you had been building businesses that you are operating giving you excess cash flow and working capital to cover said period.

    There are numerous cheap ways to build MVPs and get validation. Investors don't just judge ideas, they are very interested in what you have accomplished both in product and traction.

    You lose more equity and generally get a different class of investor, the less validation you can bring to the negotiation. You must have a strong reason i.e. some other market validation (outside of an MVP) to get in front of investors who would be willing to give almost a quarter mil.

    Moreover, asking money for development and marketing at the same time sounds/seems suspicious. If you don't have a working product, why and how are you planning to market it, esp. under 6 months?

    Without seeing your deck, these questions will sure to come up: How much have you invested personally (time and actual capital - agreed with @BassTrackerBoats )? Is there another investor? Do you have an IP, if yes what level of protection did you acquire? How much runway do you have? Do you have an option B?
     
  8. Jack Jericho

    Jack Jericho Registered Member

    Joined:
    Sep 13, 2017
    Messages:
    55
    Likes Received:
    23
    Gender:
    Male
    Occupation:
    Growth Marketer & Business Developer
    Location:
    Undisclosed
    The cap table and term sheet are more complex than the shear percentage of ownership. Standard VCs tend to take minority position at this stage, or maximum of 50%. They are interested in exiting, making a great return on their investment.

    Also, as I see it @Holdentot_Accfarm and their team are at seed stage, and should they be successful, they won't take VC money, as angel, seed & first financing in the US, under $500K, was at historic low at Sep 2019 (less than 5% of the 10% of the total value invested in 2019).

    Private equity firms, angel and private investors are different. Each of them has their strategies and mission, and it can cost much less (different class, dilution, shares, etc.). There are no golden rules here.
     
    • Thanks Thanks x 1
  9. steroidjoe

    steroidjoe Regular Member

    Joined:
    Apr 26, 2015
    Messages:
    240
    Likes Received:
    83
    Occupation:
    Tailor
    Location:
    Laundry
    Personally, be transparent and realistic about this too. They're going to challenge your model and emphasize about why people would choose you over Google videos -- which has tons of aggregated rankings. Then there's SWOT analysis where your Threat is - what if Google sees you as a competitor one day and decides to not rank you? After all, Google wants their Youtube to have highest authority; of which it already is both in the top 5 in the world. Almost anything is found on Youtube anyways. Also, how would it make money is the real question, especially when you're hosting your platform for other platforms. If solutions can meet those challenges, they can see it as investment opportunity. I wouldn't primarily rely on VC investing in ideas, unless I'm proven and established, and I don't think it requires that much capital to even launch or test the market.