Slashdot Mirror
Where Have All the Venture Capitalists Gone?
artlu asks: "I have a great idea for a dotcom company, and I just started to execute the initial stages of my business plan. I developed the initial website, gained a user base, and am about to incorporate in Florida. Now I need to find a venture capitalist! However, every capitalist I approach is fearful of dotcoms. I ask the Slashdot community: How do I find a post-bubble dotcom investor?"
There are still plenty of VC's around - and they have plenty of cash as well! Maybe it is you? Maybe they think your idea sucks? giving away more things for free? they know that that is an exceptionally difficult business model to pull off, and will only work when you have some exceptionally good services to give away.
In your case, there is little that is unique, and you don't seem to have any USP's (unique selling points), anything that I can't already get elsewhere, as part of a larger service, and most importantly, readily visible revenue stream.
I'm sorry to be blunt and harsh mate, but the VC's are still there, they are just talking to people with a better plan......
People who think they know everything are a great annoyance to those of us who do.
Since you are creating a web site for day traders, I think your business plan should include some info on how you can attract venture capitalists. If not, update your business plan.
RFC1925
You need a privacy statement. It's very important, especially for what you're doing.
Seriously though. They both exist, and have heaps of money because there's been nothing to invest in to speak of.
However, the stupider ones are out of business, and the smarter ones are being a lot more careful in their dealings now.
- Who's representing you? Don't have legal counsel lined up? You're opening a securities firm and you don't have a securities lawyer hired? Buhbye.
- Who among your executives is an SEC-licensed broker or agent? Nobody? Buhbye.
- From where did you receive your MBA? Wait, you're trying to run a securities firm and you don't have an MBA in an executive position? Oh, right, right, you have "extensive trading experience". Right. Just like every other daytrader who lost his shirt. No MBA, no investment. Buhbye.
- What services are you offering which nobody else offers? You aren't offering unique services? Buhbye.
Those questions aren't nice, but those are questions which will be asked straightoff, and if you don't have good answers for them you won't even get your foot in the door.First thing you should do is stop calling it a "dotcom business". Many VCs got burnt by them 5 years ago, and now have an irrational phobia about the term.
"When I grow up, I want to be a weirdo"
Judging from that page alone, it's clear he wants to become rich without working.
The VCs are out there, but you're not in their market anymore. Before the bubble, VCs didn't invest "seed capital", which is what you're looking for. After the bubble, VCs again don't do seed money, they're looking for companies that need "mezzanine financing" - companies with paying customers, good cash flow, and preferably a profitable quarter or two behind them. Companies that need money to grow instead of money to get started.
Before the VCs squeezed them out of the market, there were "angel investors" - individuals who knew their specific industries very well, had made their own money previously and were willing to take a flyer on a new company in their industry. Angels typically require much less documentation etc. to invest.
Your site, although competent, seems thrown together in a rush. The color scheme is drab and the text is nigh-unreadable for your target audience (these are not designers you're catering to). That just won't cut it. And that's just your site (all you have to show for the time being).
As for the copywriting: It's just unprofessional. You have neither a "corporate" reassuring voice (something desirable in this context) nor a friendly, personal one. It's just a mix and match of faux seriousness and half hearted attempts at humor. Needs tightening.
From what I see, I wouldn't bet much on the business plan. Then, there's what everybody else here is saying: You don't have a unique product. No market differentiator, no apparent viable business model, no real professional experience (no, "tried and failed" doesn't cut it when requesting capital for a business providing services for the area in which you failed).
I'm sorry, but I think the problem with your proposal is that it's not good enough. Good luck improving it.
Overcaffeinated. Angry geeks.
First, the website that currently exists is not the business idea. It is the first step in my business plan. VCs have not been exposed to any of the true idea yet. The non-disclosure form was just finished by my attorney yesterday. I agree, the website is poorly designed, but I am just working on getting it running before developing it farther.
Second, my about page on artlu.net. A) yes, it is stupid and childish. B) I have not updated it in nearly 4 years. C) If you are judging me by that page, I have nothing to say. I took it offline, but im sure you can google or internet history it.
Third, I am working on the privacy policy as well - I don't remember which post mentioned that, so thank you.
Finally, I appreciate all of the constructive comments and the emails I have received of interest. They are definitely leading me to change a few things in the Business plan.
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artlu.net