Start-up Funding Needed!

MwayMway subscriber Posts: 1
edited December 2006 in Startup Funding
My company is in the funding stage for a 1.5 million dollar project located in Arizona that deals with community health and fitness. We need some help locating a lender or investor willing to take a serious look at our proposal. Where should we begin looking. We`ve tried the conventional bank business loan, but we haven`t been in business long enough to qualify so that won`t work. we`ve also talked with several people who were interested but they were unable to fund that large of an amount.....please help.

Comments

  • msdrumsdru subscriber Posts: 1
    If I were you I would seriously look into finding a venture capitalist or angel investor. Such "Finance Eficionodos" would probably be interested in your project, depending on the ROI (return on investment). I would also look at your regions chamber of commerce, municiple bonds ( you can access the bond financing from the manicipality, city, or county, your fitness center will be located in; this usually allows you to recieve a lower interest rate and loan repayment time frame, than traditional bank loans.)   
  • robertjrobertj Tampa Bay, Floridasubscriber Posts: 0 Member
    My company is in the funding stage for a 1.5 million dollar project located in Arizona that deals with community health and fitness. We need some help locating a lender or investor willing to take a serious look at our proposal. Where should we begin looking. We`ve tried the conventional bank business loan, but we haven`t been in business long enough to qualify so that won`t work. we`ve also talked with several people who were interested but they were unable to fund that large of an amount.....please help.
     
    Without more details -it`s impossible for me to give you any input or ideas specific to your project. There are many different ways to bring capital into a company. The first step is to choose the direction that offers the optimum chance of success. This often involves dealing with the many " funding myths" that are accepted as fact.
    Robert Johnsonrobertj2006-12-2 8:39:0
  • AdvisorGarageAdvisorGarage subscriber Posts: 10
    I agree with some of the thoughts and sentiments given in response but the reality is venture capitalists come in all shapes in sizes.
    There will be some that need to see customers lined up, physical assets etc and prefer later stage investments and there are others prepared to invest in earlier concepts. 
    They do not always insist on controlling interest...in fact many VCs like to invest alongside other VCs as a way of pooling the risk and commitment.
    VCs often have a focus on one or a few industries...but most focus on the following criteria to some degree or other when examining potential investments...
    Size of Market / The Exec Team / Signs of Traction (Customers etc) / Competitive landscape / Barriers to entry (i.e. means of protecting your market from competitors)
    Believe it or not $1.5M is not that much money...look at boutique VCs...perhaps local to Arizona or Angel Rings...i.e. angels who invest as a team...another way to get the $1.5M.
    BTW, a VC just joined my site looking for entrepreneurs to support...don`t know if she is focused on Arizona or your space but might be worth a look...
    Andrewhttp://www.AdvisorGarage.com</A>
     AdvisorGarage2006-12-12 18:1:49
  • centerprisecenterprise subscriber Posts: 0
    I would suggest looking into angel investors. The majority of start-up and early stage companies get thier funding through angel investors. You can get in touch with some of the best investors at www.breadstreet.com .
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