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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.
While standing in the front of your venture capitalist, turn 180 degrees so that he can see your back. So, put your pants (and underpants down) and try to touch your feet with the tips of your fingers. You can slightly open your legs to make it easy for your to touch your feet. Now wait for your new "venture" to start and enjoy. Good luck.
The Future of Internet Investing is Coming.
With that aggravating beauty, Lulu Walls.
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.
... I wouldn't give you money. Would you trust someone who advocated day trading to manage your investment well? I find it interesting that you quote Warren Buffet in your theory section when essentially you are going against everything that he stood for (regarding investments).
Realize that in order to succeed you will lose - a lot. I lost $11,000 when I started out, but I think of that money as an education. Also, do not even attempt to day trade with less then $40,000 as you will need Day Trading Buying power. PAPER TRADE.
How much did you end up making? If you did/are doing well, why are you changing professions (trader to dotcomer)? If not, why would I trust my money with you? (especially since you're losing your money in such a foolish manner--day trading)
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Where's the money... seems like you're missing the basic idea, they want to make money. Unfortunately it's a big waste of my time to explain this to you, so.. good luck.
A fool throws a stone into a well and a thousand sages can not remove it.
Sounds like someone got carried away with the 24HDC...
And he actually managed to get a plug on Slashdot. This is just slightly pathetic.
Bot Assisted Blogging
- 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"
Take a look, at the selfdescription of the poster! About Him
"I made a website, where's my fucking money???"
I've just started [link]a company[/link] and I'd like some free exposure from a heavily trafficked Web site. What question should I asked on Ask Slashdot to generate this exposure?
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I support spreading santorum
Where have all the VCs gone?
Long time passing
Where have all the VCs gone?
Long time ago
Where have all the VCs gone?
Dotcoms fleeced them every one
When will they ever learn?
When will they ever learn?
No real plan. No unique concept. No market differentiation. No pressing need being met. No users clamoring for you to open. No revenue streams. No team to make it happen. No real business background. No exit strategy.
If I were a VC I would bill you for wasting my time. There are plenty of VCs out there dying to invest their money as it has a shelf life that is coming due, but no one is stepping up with a good idea. And yours is not a good idea. A good idea had a $5-20 Billion market. A good idea can capture at least 5% of that market. A good idea fills a void in the market. A good idea has high switching costs for the end user, is hard to duplicate, is expensive to get into, has large margins, has the ability to block competitors through things like patents, leverages an already installed base, and makes you wet your pants it is so good. If you don't believe in your idea to invest your own money, money you may not have, put together a team, do the research, etc. - then why would a VC invest?
I, for one, can't believe this got posted. Oh, wait, yes I can. Perhaps my next submission will be an Ask Slashdot: "How much will you pay for this turd."
As for the something different, I'm hundred per cent behind you on that one. If you don't have a product differentiator, you are dead - there is only so much market and somebody bigger always has economies of scale.
See my journal, I write things there
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
Looks like his free ad on Slashdot is doing pretty well