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1. • CommentAuthorbryanGENE
   • CommentTimeSep 6th 2006

    
   Anyone have a list of VC firms that invest into internet businesses?
2. •  
     CommentAuthorJason G
   • CommentTimeSep 6th 2006 edited

    
   Bryan,
   
   My suggestion to you, stay away from VC's unless you have a multimillion dollar idea.
   
   If you’re living in the US, check out
3. •  
     CommentAuthorAudarius
   • CommentTimeSep 6th 2006

    
   I would go JG on this one. VCs should be your last resort.
4. •  
     CommentAuthornado
   • CommentTimeSep 6th 2006

    
   Daniel might be able to hook you up.
   
   But yeah, you get VCs, they want large stakes, they want rapid growth, they want quick returns, they want regular reports, regular board meetings and ultimately a quick sale of your company.YE Blogger - World's Largest Directory of Young Entrepreneur Blogs
5. •  
     CommentAuthorjdoc
   • CommentTimeSep 6th 2006

    
   See my response to you on the YE site.
   
   It does sound like you need to be a bit more educated on what VCs are and how they do business. If you need some more info, feel free to PM me here or on YE.
6. •  
     CommentAuthorEric
   • CommentTimeSep 7th 2006

    

   Posted By: jdocSee my response to you onthe YE site.
   
   It does sound like you need to be a bit more educated on what VCs are and how they do business. If you need some more info, feel free to PM me here or on YE.

   I'm appauled jdoc! :)Complacency kills, and we're too young to die...Risk taker by nature
7. •  
     CommentAuthorjdoc
   • CommentTimeSep 7th 2006

    

   Posted By: EricI'm appauled jdoc! :)Instinct is a virtue

   
   
   Sorry, don't ban me! :-) Just trying to save on typing.
8. • CommentAuthorfattony
   • CommentTimeSep 7th 2006

    
   Wow i never heard of that site b4. YE.com is a class site, im never coming back here again - only jk :-)
9. • CommentAuthorrdewey
   • CommentTimeSep 7th 2006

    
   When dealing with VC's, it all boils down to your startups valuation. Seed stage investors are taking big risks and will likely give you a relatively low value, meaning that they will likely be taking a higher percentage. Typically, the maximum ownership will be in the realm of 25%-33% for a startup...
   
   If you need $250K or less, angel investors are your best bet. There isn't a central phone book where you can pick out an angel - you have to network out. Also, there are a few (one that I know of) VC/angel hybrids that are in it as a sort of philothropic project (typically, they are on the Forbes400 list).
   
   There are times when a bank loan is all that you need. Most will want to see proof that you know what you're doing, and they want a solid business plan. This is all part of their risk assessment and will determine whether you actually get the loan, and what your interest rates will be. Banks loans are good for slow growth businesses such as PC building, screen printing, and most brick&mortar; setups.
   
   Venture capital is generally used for seed stage/startup companies in the technology field. These are companies that want to change the world (or at least think they can), have the ability to expand fast, and make alot of money. This would include companies that develop things like: a new operating system, search engines, selling dog food online, etc..
   
   I wouldn't bash one particular method of funding over another. Banks are good for things that VC's are not, and vice-versa.
10. • CommentAuthorutkarsh.s
    • CommentTimeSep 7th 2006

     
    So the basic idea is to go for Angel Investors instead of VC's? What if a student like me need seed capital for his project? I am confident of turning it into more than what it is worth now.
    
    What are the options for them? Because as far as I know securing bank loans by students might be very difficult if not impossible.
11. •  
      CommentAuthorMsNadi
    • CommentTimeSep 7th 2006

     
    Not to sound salty, but I'm sure EVERYONE who's ever at one point SERIOUSLY considered entrepreneurship, and acted on it, was convinced they could turn their idea into more than what was required to create it. Ya know? Because if you're taking action and NOT thinking you can recoup the $100K to get it going, why are you doing it?!
    
    Business Week did a great profile of 13 internet entrepreneurs and things they say you SHOULDNT do. And one of 'em (craigslist) said to avoid VC's. They want to much, offer to little and can be quite controlling and stifling.
    
    So how do you get on without them? Like other's have mentioned - Prosper (www.prosper.com), Friends and Family, Angel Investors and getting creative (how can you launch without the serious influx of capital - can you do things piecemeal or in phases, can you utilize partnerships or who else might be interested in funding your concept). Case in point - www.imin.com received money from www.starwood.com (company that owns sheraton, westin, W' hotels) and NyLo hotels (a new hotel brand set to launch Q1 07) because they're creating a group travel planning site - and of course sheraton wants a piece of that.EntrepreneurGirls Business, from the female perspective
12. • CommentAuthorrdewey
    • CommentTimeSep 7th 2006

     
    If you can't secure a loan and your business falls into the "bank category", don't assume that VC's and angels are your next option.
    
    VC: Technology business with the potential to rapidly scale. The business should be rather unique, and not supported by something as simple as advertising revenue. This would include things like ground breaking search engines, operating systems, CRM software, etc.. At this point, you should have a proven concept, wireframe, and perhaps even a few customers.
    
    Angels: If you fit the VC model above but you're still in the "seed stage", try getting in touch with an angel investor. You should have at the VERY LEAST a mockup or functional design of your project.
    
    Banks: This covers everything brick and mortar, like screen printing shops, bike shops, PC assemblers, retailers, etailers, realtors, etc..
    
    You have never really described your business, so only you would know what category it falls into.
13. • CommentAuthorrdewey
    • CommentTimeSep 7th 2006

     
    Some other things:
    
    VC's: They will benefit you if you need cash fast and fall into their category. YouTube could not have gotten where it is without VC's, and no bank would have loaned an unproven concept millions of dollars.
    
    Angels: They take a lower equity stake, and offer much more one-on-one guidence... They are typically business owners themselves, so they can offer good insight. Their requirements are usually less restrictive than VC's, but don't think they just in it for the fun.
    
    Banks: Well, they just give you the money and want it back on time. If you don't pay them back with interest regularly (monthly), it will look REALLY bad. Of course, you should have an LLC setup so your business assets are seperated from your personal assets in the event of bankruptcy.
14. • CommentAuthorutkarsh.s
    • CommentTimeSep 8th 2006

     
    rdewey,
    Thanx a lot for the info, my business idea falls into the Internet Category. But many people dont suggest me to go for VC's as the idea is still on paper. Is it necessary t start the business full fledged before we go in search for VC/Angel investors?
15. • CommentAuthorrdewey
    • CommentTimeSep 9th 2006

     

    Posted By: utkarsh.srdewey,
    Thanx a lot for the info, my business idea falls into the Internet Category. But many people dont suggest me to go for VC's as the idea is still on paper. Is it necessary t start the business full fledged before we go in search for VC/Angel investors?

    
    
    You won't get funded with just an idea at this point. If you can assemble a team and get at least a proof of concept / working model, your odds increase dramatically. In order to make your odds even higher, you also need to demonstrate how you plan on making money with your product.
    
    Alot of "web 2.0" investors have been slacking - they aren't looking at your business model, they are simply gambling that you'll be aqcuired at some point. It's a dangerous situation for investors, but good for prospective entrepreneurs.
    
    Either way, don't try to get funding with just an idea...