Woes of Finding Start up Funding

Jahsco

It has been SO hard finding $$ to start a business, but this board is quite helpful, especially learning about people`s experiences finding seed money. I have come across two sites that many of you probably know a thing or two about.
Please give me your thoughts on the following websites:
Fundraiser 1.0 and www.thesnaploan.com as sources for getting money for startups.
What has been the general experience?
Thanks

robertj

I`m sorry to hear you have found it so hard to find funding.
 
As I interpret their web info,  Fundraiser 1.0 as essentially promoting and selling their material so you can make money - which you can use to start your other business.
 
 
How much capital are you seeking?

Jahsco

Yes, it has not been easy. I am looking for at least 50k for initial operating expenses to get to launch. I am starting an e-commerce site.
So you think Fundraiser 1.0 is worth a try? I get so weary with all these offers to make money, especially for startups. As many of us know, it`s such a viable market since entrpreneurs are so desperate for seed money.
Thanks for your response!

robertj

Jahsco,
 
If you feel you can find a niche that isn`t already being served and market successfully to that niche - then you may have some success. But if I`m going to go to all that effort, I`d want more exclusivity.
 
What have you done so far to acquire the $50K?

Jahsco

I have tried to get a bank loan with no success thus far, contests. I have not contacted any VC`s because I am constantly being told that, at this stage, my company is not ready to receive VC funds. I have also researched online lenders, but I am very skeptical.

robertj

Jahsco,
 
If by VC`s, you mean Venture Capital firms that invest other people`s money -then I would agree. Candidly the amount you are seeking and the stage of your business would probably make you a "non candidate".
 
However, there are options beyond the bank and a VC firm - which are essentially the two ends of the funding "spectrum".
 
Do you have a business entity set up or are/were you trying to borrow the funds as a personal loan?

Jahsco

I have set up the company as a sole proprietor, but plan to change the company to a LLC.
No, I have applied for a loan as a business owner.
What are other funding options do you suggest?

Jahsco

Thanks for all the great feedback!
J.

Jahsco

Hi Robin,
I posted about Fundraiser 1.0 about a week ago, asking if anyone had used them before. I never got any feedback and now you mention them!
How does it work and what has been your experience? I sent you an email if you want to respond to my personal email.
Thanks

ssrrss

Robert J,
I am seeking seed capital. Am based in India.
After spending 15yrs as salesman for crticial care respirators in the Indian market I am since 5yrs promoting the same as indepnedent cosultant. Now I want to set up a marketing organisation adding more products.
I see that there are many Angel Investors group and funding agencies abroad/mostly in USA, etc difficult for me to access.
I am finding it difficult to raise fund from all available sources like banks as I do have any securities like assetts for busines loans. My idea is great, welcomed much, having wide scopes/profits but they all need guarantors or securities.
What are yor advises for me to get the fund of US$ 150,000/= ?
Thank you
 

robertj

ssrrss,
Accessing US capital will be highly problematic because:
1. The amount you are seeking is well below the norm for all institutional sources.
2. Angels and angel groups like to invest "close to home" (say within a 2 hour drive)
3. Private investors may not have the comfort level to invest in a foreign situation.
 
I think your best bet is finding support in your country. Although I`m not well versed in the nuances of acquiring capital there, I`d suggest the basics:
1 Develop a solid business plan
2  Assemble a team around you - as appropriate
3. Build your constituency
 
Hope this helps.