point of frustration

bytenrambytenram Posts: 9subscriber
edited January 2008 in Startup Funding

Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front.


I have seen these companies many times allow you to post a statement or request for funding and then at the end of the process you have to PAY.  I mean…why not ask you to pay before all of the work has been put in.


It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case. 


I am not saying my business idea is any greater than the next but I have a great idea that has been proven to work in the past. There has been one company to do what I want to do and they sold out and the business closed due to the owner passing away.


I have a unique opportunity to get a similar business going and can’t for the life of me find 100k that I need to get this business going.


I mean even 30k would get the business open and making money.  Just wouldn’t have any cushion for several months.


Have you dealt with similar issues?  How did you over come these issues?


Ok…that is enough of my ranting….I am just getting a little frustrated at this point. I have several people interested in partnering with me and they know where I we can get the funding but they are not as dedicated in starting a company like I am.  They are up in age and want to take less risk at this point as they are financially stable.  Anyhow…ok…I am off now…Hope you all have a good one…



 




 




 




 

«1

Comments

  • LiveWiseLiveWise Posts: 5subscriber
    Sometimes businesses are like babies.  Everybody has the cutest baby and they are also the smartest and if you went up to people and asked if your baby is cute and should be in modeling, I am sure that people may tell you that you have a cute baby (Those who think your baby is ugly won`t tell you in most cases.)  They may even state that they will help you get your baby into modeling. 
     
    A Modeling agency will always tell you that it`s perfect!  They know people that will want your particular type.  Just pay $XXXX and they will make a portfolio and put your pictures in front of the right people.  If those don`t work out, then it`s your fault that you didn`t have the right look and they gave it everything.  Eventually, you will give up and they will be the first to say they are sorry.  But if you succeed, they will be the first to be right there and let you know that they contributed to the success.  Either way, they are just trying to appease you until you succeed. 
     
    Have you tried some investors in your community?  What about the Angel investers?  If you had 2 people put down $15,000 instead of just 1 person, would that matter?  I haven`t used the on-line thing, but I think I would want to work with somebody locally with that amount of money. 
     
    People have a right to be careful with their money.  They didn`t get rich by just giving it out.  They evaluate the risk and return.  Make sure that you have sound business practices and give them the business plan so they know that you are serious. 
     
    Good Luck!
    LiveWise1/6/2008 10:18 PM
  • bytenrambytenram Posts: 9subscriber
    Guess my question wasn`t stated properly. 
     
    My question is why do you always have to pay companies to find investors.  We can`t we get to the firm etc. without having to pay these online companies.  I mean, we are trying to get startup funding but everywhere we go people are trying to nickel and dime us. 
     
    I understand it is going to be hard and about the babies etc.  I just don`t feel like paying a directory online that says they have 1500 investors you know.
     
     
    bytenram1/6/2008 10:21 PM
  • RoblueRoblue Posts: 0subscriber

    Guess my question wasn`t stated properly.   My question is why do you always have to pay companies to find investors.  We can`t we get to the firm etc. without having to pay these online companies.  I mean, we are trying to get startup funding but everywhere we go people are trying to nickel and dime us.   I understand it is going to be hard and about the babies etc.  I just don`t feel like paying a directory online that says they have 1500 investors you know.  

    I read your original post, and, believe me, I have done my share of ranting and raving in the past when I wanted financing to establish my business.
    I wanted to let know of a resource I used that does not charge you if they can`t find you an investor.  If they do find you an investor, they charge 5 points on the amount of money the acquire for you.
    Try www.thesnaploan.com.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member

    Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front. I have seen these companies many times allow you to post a statement or request for funding and then at the end of the process you have to PAY.  I mean…why not ask you to pay before all of the work has been put in. It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case.  I am not saying my business idea is any greater than the next but I have a great idea that has been proven to work in the past. There has been one company to do what I want to do and they sold out and the business closed due to the owner passing away. I have a unique opportunity to get a similar business going and can’t for the life of me find 100k that I need to get this business going. I mean even 30k would get the business open and making money.  Just wouldn’t have any cushion for several months. Have you dealt with similar issues?  How did you over come these issues? Ok…that is enough of my ranting….I am just getting a little frustrated at this point. I have several people interested in partnering with me and they know where I we can get the funding but they are not as dedicated in starting a company like I am.  They are up in age and want to take less risk at this point as they are financially stable.  Anyhow…ok…I am off now…Hope you all have a good one…  
    Here are some quick comments/ questions: Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front.  That is how they get their revenue. Also, if they charged a “success” fee they would be subject to regulation by the SEC.It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case.  A great idea is important and a good start – but not enough.I have several people interested in partnering with me and they know where I we can get the funding but they are not as dedicated in starting a company like I am.  I’m not clear on this point. If they know where you can get funding – what is the delay?
  • bytenrambytenram Posts: 9subscriber

    Robertj,


     


    The delay is they have lives that are very busy.  The other aspect is we live in different states and have conflicting schedules it is hard for us to find a time to get together. Also, because they already run businesses they have obligations they must meet. And I am rather impatient person.  I like to get the process started and start working towards a goal.  I am not saying they will not come through; I just don`t want to wait until they have the time or get around to it.  It could be months.  I want to do all I can and if I find funding first then so be it. Maybe I shouldn`t be this way, its just I am tired of where I am right now and want to do something to better myself.



     

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member

    Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front. I have seen these companies many times allow you to post a statement or request for funding and then at the end of the process you have to PAY.  I mean…why not ask you to pay before all of the work has been put in. It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case.  I am not saying my business idea is any greater than the next but I have a great idea that has been proven to work in the past. There has been one company to do what I want to do and they sold out and the business closed due to the owner passing away. I have a unique opportunity to get a similar business going and can’t for the life of me find 100k that I need to get this business going. I mean even 30k would get the business open and making money.  Just wouldn’t have any cushion for several months. Have you dealt with similar issues?  How did you over come these issues? Ok…that is enough of my ranting….I am just getting a little frustrated at this point. I have several people interested in partnering with me and they know where I we can get the funding but they are not as dedicated in starting a company like I am.  They are up in age and want to take less risk at this point as they are financially stable.  Anyhow…ok…I am off now…Hope you all have a good one…   Is your frustration at these "investor networks " because 1. they charge to allow a listing2. They don`t tell you how much it is until the very end (a concept that I see all to often on many web businesses)3. They charge too much?      - How much do you think they should charge? 
  • bytenrambytenram Posts: 9subscriber

    Robertj,


     


    the prices seem fair from what I have seen.  The thing that bothers me is there is no mention of fees until the very end when you hit the SUBMIT button.  then woops...$59 for this $129 for that and so on.


     


    $59.00 for a company that says they match you with investors is ok if there was some way to verify what they say they do.  References maybe. This is the most frustrating aspect.



     

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    OK - I agree with both of your points.
       1. I personally dislike those sites that don`t tell you how much something is unless you:
              a. register or subscribe or input all of your personal information
                b. Start the "buy now" process
        2. I like things that can be measured. (ie - you run an ad and see how many call you get) 
        So I`m not a big fan of these passive methods of "connecting" people such as the post your business plan and "lots" of people will read it. I`d want to be able to track how many people expressed interest - or at least get that information.
     
    All the best
      
    robertj1/7/2008 6:53 PM
  • bytenrambytenram Posts: 9subscriber
    Robertj,
     
    I reviewed your websites above and found the site very informative.
     
    Can you give me a break down of the process with "Quickstart Capital"?
  • crazydiamondcrazydiamond Posts: 1subscriber
    ...SUBMIT button.  then woops...$59 for this $129 for that and so on.  $59.00 for a company that says they match you with investors is ok if there was some way to verify what they say they do.  References maybe. This is the most frustrating aspect.  
    I don`t know a lot about these services. I`m more a VC guy and a bootstrapper, combined with corporate finance background. So if you wouldn`t mind, I`d like to ask a question . . .Did you cough up those kinds of bucks for a referral service not knowing what their actual placement success rate is, or what kind of profile their investment community is? I`ve never known an investor who was prepared to tell anyone (let alone an on-line service,  what their financial resources were, or what their investment philosophy or criteria were. So I find this idea a little, ummm, otherworldly.Other than ELCEO who thinks that funding universe has something to offer, and Roblue who suggests this snap loan idea, has anyone else found these services viable and useful inestments of their time and effort?Curious . . .
  • bytenrambytenram Posts: 9subscriber

    Crazydiamond,


     


    I have never heard of thesnaploan.com until I got on this site.  I can`t find much information about them and can`t say I am interested in them at this point.


     


    Also, I have not paid those fees to submit my business plan to god knows who.  I am very protective of what I have here and not just going to hand it out to people. I just find it despicable how some of the sites are ran that state they will hook you up with investors. 


     


    I was born at night but it wasn`t last night.  I need hard evidence of what someone is selling before I am buying.


     


    :)


     



     

  • crazydiamondcrazydiamond Posts: 1subscriber

    Crazydiamond,. . . I was born at night but it wasn`t last night.  I need hard evidence of what someone is selling before I am buying.  :)

    My kind of guy !!
    I was born last night but it was before 3:00 a.m. . . .
    I just find the idea, weird, but then whaddIKnow
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Thanks for asking. I don`t think this is the appropriate place to go into detail but in short:


     

    Quikstart Capital is a advisory, mentoring, coaching program that we designed to help people prepare for and successfully execute their first round of capital acquisition.
     
    If you`d like to know more send me a Private message with your email address so I can provide more detailed information.
     
     
    robertj1/8/2008 11:54 AM
  • RoblueRoblue Posts: 0subscriber

    Crazydiamond, I have never heard of thesnaploan.com until I got on this site.  I can`t find much information about them and can`t say I am interested in them at this point.  Also, I have not paid those fees to submit my business plan to god knows who.  I am very protective of what I have here and not just going to hand it out to people. I just find it despicable how some of the sites are ran that state they will hook you up with investors.   I was born at night but it wasn`t last night.  I need hard evidence of what someone is selling before I am buying.  :) 
    HiLike you, I heard of [url=http://www.snaploans.com. ]www.snaploans.com. [/url] I admit the give me your email box on the bottom of the home page does look suspicious and acted as the deterrent on several occasion.When I did finally press the submit button, having entered my email, I just knew a page full of information about price packages would pop up.       Instead, they email a Fee Agreement to you with a link to an additional information site with about snaploans.com and 4 very short simple instruction videos.Here were my two biggest worries the cost and the probability of s positive outcome:1.  The do charge a fee; however, this is based on whether or not they acquire an approved loan for you.  If they do acquire a loan for you, their fee is 5 point on the amount.2.  The provide thorough information in every step to get you through not matter what lever of computer literarcy you are at.www.snaploan.com is the intenet arm of parent company Midas Financial based out of Colorado.  However, their iinternet arm caters to all US resident business owners.Hope this adds some clarity for you. 
  • crazydiamondcrazydiamond Posts: 1subscriber
    Thanks for the answer Roblue - so it is basically a loan brokerage service, right? Hmm. Well anytime I have dealt with a broker, the foundation was trust, and that was built face-to-face. Kinda curious what steps this sort of service takes to create that trust. And I`m with Ideas - it doesn`t sound like they make trust their top priority.Still, maybe it is a developing thing, and something will emerge in time. I did read somewhere that prosper.com is running into some trust problems with some pretty disaffected people commenting negatively  experiences. It will be interesting to see this unfold.Mike
Sign In or Register to comment.