How to connect to investors

Startups

Hi everybody,For first, i`m new here and i hope to get involved in many interesting discussions. Please excuse, my english is not the best, i`m from a very small country in central europe, so i hope that doesn`t matter.OK, now to the topic:My friend and i are planning a (in our opinion) very interesting webservice, which should be unique or at least rare. We have also a concept. Our problem is: How can we hook up to investors? I know, there are a lot them. The point is: We  get in touch with them(only if email is accessable to the public and contacting desired, no spam) and we want to introduce them our plans. The most of them don`t reply us, although they don`t know our idea as yet and might to miss a good project.How can we go on to get attention? Any tips?Thank you for your comments

InactiveMember

First... if you haven`t already... go to the library and get a few books on dealing with investors or venture capitalists. These books contain interviews with investors... and in these interviews the investors talk about all sorts of things - including introductions. One thing that I`ve heard over and over again is that venture capitalists are much more likely to pay attention to proper introductions than random contacts like e-mailing a business plan or cold calling. 

Startups

Hello CookieMonsterThank you for your reply. A proper introduction would be surely the best. But how could i do this, if it`s not by the telephone or email? The most vc-companies or ba`s are far away from me, i can`t jet around the globe and introduce myself everywhere Or did i get you wrong?
startups2007-6-19 7:29:27

InactiveMember

You are welcome.If you are not able to get introductions, and must send your business plan or executive summary via email or postal mail, I still recommend getting a book or two on venture capital. You can also create a short, well-written executive summary and send that along. An interested venture capitalist will reply; lack of reply probably means disinterest. You might also raise your profile with more standard approaches such as publicizing your web site, creating a working test version, and so forth. I do hope this information is to your liking.I see you are from Liechtenstein; your country
has lovely banks. Viva Europe!

Startups

Maybe i should take your advice. The thing is: It can`t be a lack of interest, because in never sent a executive summary until now. Maybe it sounds paranoid or stupid, but i`m fearing that somebody could overtake the idea and do it on his own. What we did: Asking, if we can introduce a very interesting idea. If yes, we would send a executive summary. And already on this point, they don`t reply (there are some expections, but they only invest in US-based companies or individuals).Lovely banks and lovely taxes, but i`m a honest worker outside the bank industry, many banks settle down in Liechtenstein because of the low taxes and the rigid bank secret..

SBLS

This is a very difficult situation because getting an introduction to a VC is rare.  Angel investors are sometimes easier to find.  Investors typically will want to see the concept before even talking to you and they understand the confidentiality issues that concern you.  You MUST put "Confidential and Proprietary" and some language about no distirbution on all documents you share with anyone.  If you can get them to sign a confidentiality agreement, great but typically you`ll have to just distribute with the Confidential language.  Also, you MUST have your plan and pitch completely together before contacting investors -- you typically get one shot.  You don`t get to fix things and come back again.  This is where the books that Cookie Monster suggested might come in handy.  

Startups

Thank you, SBLSA blogger wrote, that an NDA is actual worthless. It has no legal value. Do you agree?mfgDavid Sprenger

SBLS

There are multiple ways of looking at it.  The NDA is as much a psychological barrier to disclosure as it is a legal one.  It`s someone putting their word on the line -- most people take that seriously.  For the ones that don`t, the NDA puts in place remedies should the person disclose or compete with the idea and usually says that general damages (i.e. lost sales) would not be sufficient to cover the actual damage done to the business allowing for potentially large judgements if the disclosure occurred.  That being said, the remedies may not compensate you entirely for the disclosure -- if the person discloses or competes, you have lost the opportunity for first mover advantage and the benefits of buildinng the concept yourself.  Therefore, the NDA should be used sparingly -- you should disclose your concept  only when necessary to help build your product or  to people who are mutually incented to keep the concept confidential and in your hands to build it.  For example, you may absolutely need the help of an engineer, graphic designer, or angel investor to actually get the thing off the ground.  If so, you may have to take the risk and cover yourself as best as you can with a NDA.  The other incentive, as I mentioned above, is to giving them a reason to keep it confidential through equity, profit sharing, royalties or other incentive structure. 

Startups

A very good text! Thank you for this detailed infromation. So, the NDA is more a psychological help and a directive for both parties.

centerprise

call investors direct. I would recommend www.breadstreet.com