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Input on venture cap or other startup investment
Coegi
Member Posts: 5
Hello again everyone, Coegi here. As some of you may recall I part of a team of independent developers for a pre-Series A startup gaming company. We have a good and proven mmorpg concept, are already in the black, have a capable business and programming component. However, none of us have any experience with venture capital. Legally we understand how it works but beyond that we are still learning.
So, my post here is to ask this knowledgable community if anyone has any experience with VC or other investment or even just general suggestions that we and others may use.
Comments
Ok from the sounds of it you have your product and are confident enough in it to proceed to find funding so you can ramp up production to better quality, better resources etc..
How to find and succeed at getting funding for virtually anything on the planet:
1. People with money, know how money works. - Prove to them with your BUSINESS PLAN that you are financially sound, a good investment, not likely to fail, have motivation to proceed when faced with major problems. As people say there no investor stupid enough to pass on a good deal. Your job is to make them know that you are that good deal just need some of their funding.
Do this and money will be rolling in. Of course you already understand the legal endeavor you will have to undertake but that is the risk you must take to get this off the ground. Investors in business' are more wary about where to put there money unless both the money and the people running it have sound principal and management behind them because if you do fail, they will have nothing to recoup their money back that they have spent on you. Put yourself in their position and you have money to give away because you want to gain a return on your investment and the longer its sits there its more time wasted doing nothing. What kind of stuff would you like to hear and can back it up with data that can persuade yourself to give some stranger/business partner your hard earned money.
If you would like a guide on how to write a business plan just email me at Nikkons017@gmail.com
2. Once you have a bullet-proof business plan, you will start pitching to investors because there are plenty of them out there. This stage usually involves lots of phone calls and setting up meetings to sit down and talk with them. Put your business charm skills on and really get to know the person. Establish rapport with them and learn about what they want to achieve with their money. Find out what kind of person you are talking to is: is he/she the straight business person who only wants to see the financial s and get in and out quickly or do they the type that decides not only on the financial s but on the connection and feelings they build with their client. The more the person can trust you, the more likely they will be willing to lend you money. If they don't bite at the first catch, that is OK, its not the end of the world and there are thousands of other investors whose door you can knock down. Just say, " thank you for your time, and it was a pleasure meeting you." then hand them your business card (you do have a business card?) and tell him/her to contact you in the future if they change their mind. The puts you one stage higher than them because you act like you know its going to work and all you need is money to make it happen and they are the ones who are missing the opportunity to take you up on such a great offer.
3. to find venture capitalists you can use the web, google, investment firms but the best business comes from personal referals from other professional people. Find people who have gotten financing from some guy and have them refer you to them, that way you already have some connection to that person through said new friend mr. banker. Banks, real estate brokers/agents, and investors network with people who you would really like to get to know to..
But good luck to you on your business endeavor and I hope this helps
Nikkons thanks for responding and with such useful information. I was hoping for an explosion of discussion and debate on the topic considering the topic but your answer was fantastic. It has helped us and I am sure it will help others that look. If anyone wants to contribute further, even redundantly, with your experience or thoughts or advice please do I am hoping that other new developers may come across it and find that tidbit of informatin they were looking for.
Nikkons, thanks again, it was very kind of you. Ill be in touch