Help in finding Venture Capital please

Discussion in 'Trading' started by Joeblough, Feb 8, 2012.

  1. Based on your description, there is no reason why you can't fund this yourself. Most software startups need little capital to get a set of early adopters.

    Get some money, a loan, friends, parents, anything, put it in your trading (I'm assuming you're profitable) and then into your start up

    Sandhill Road is where you should look for venture capital. Most big cities have some kind of firms.



    Edit: allot of trading software companies are crappy businesses. Ninjatrader has allot of users, and still more bugs than the Iranian navy. You shouldn't fall in love with your one idea and be open to other things outside of trading. :)
     
    #11     Feb 20, 2012
  2. Epic

    Epic

    I'm in VC.....

    Your analogy to other companies like Facebook is not applicable. Facebook was started on a shoestring budget. They did not get any big time VC until it was already catching on. You are still at the stage of funding this from your own savings account or personal loans.

    I will tell you right off hand why I wouldn't invest in your idea though. First off, I rarely invest in ideas. I usually invest in businesses and there is a big difference. Businesses make money, while ideas cost money. Many people tell me that they are a business because they spent $400 creating an LLC. But they have no real sales, and do you know how hard it is to put a proper value on something that generates no profit?

    But occasionally one comes around that is still in the idea phase, but might be worth the risk. Here is the criteria for a "good" idea.

    1) large target market
    2) ability to pre-sell before manufacture
    3) perishable or addictive resulting in continued revenue
    4) very high margins
    5) easy to understand the value requiring little consumer education
    6) low overhead

    Your idea fails #1. Do you know what portion of the national population would be interested in a trading game? Less than 1% would be my guess.

    Your idea fails #2. All of the cost is development cost, that must be completed before you can even demonstrate the product.

    Your idea fails #5. You'll probably have to give it away for free to get people to try it out and in the end it isn't showing them how to make money, it is just building their skill set.

    Going back to Facebook... do you know how they first got started? They were a huge success because thy fit almost all of the above criteria.
     
    #12     Mar 1, 2012
  3. Epic did a solid job, but I'd like to add a few things for others who may be interested in VC. Saw some suggestions here that need correcting:

    1) If you ask for an NDA you'll get laughed off the premises. That'll be a huge red flag, and you'll be pitching to a biased group before you even start. You don't have to worry though, a VC who blabs about your idea won't ever have the opportunity to fund another deal. [reputable] Firms take this stuff seriously.

    2) DON'T COLD CALL. That's another turn off. Rummage through your linked in connections and find someone to give you an intro. If you have no possible inroads, then attend a local entrepreneurship function in your area, find the local incubators, and talk to some folks. Before long you'll have a few names and you won't sink your ship before you set sail.

    Happy coding.
     
    #13     Mar 7, 2012