I see plans where there is no company, a one man army. There are obviously no customers and no revenues. There is a spreadsheet which shows an exit valuation of $50MM. The entrepreneur wants to raise $1.4 MM and is prepared to invest the princely sum of $10,000 including money from friends and family. Obviously this is the first company that the entrepreneur is doing and there is no lawyer that the entrepreneur has and no advisors.
Another plan was trying to raise debt from angels at 9% because that is higher than the fixed deposit rate ?
Would you invest as an angel? If you would there is a bridge in Brooklyn I want to sell to you.
Please do not send me plans like this. You are wasting my time and yours.
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Venturewoods is a much needed initiative and its great that there people who are passionate about helping entrepreneurs. I agree with most of the stuff written on this thread about fund raising plans (sweat equity, returns greater than fixed deposits…) but I think if the intention here is to help entrepreneurs than having Donald Trump attitude might not help anyone.
If you have made the effort of saying that something wont work for you then explain the reason why it might not work for you. For example, maybe returns greater than fixed deposits might not be a great idea but using debt as a tool to start a company is not a bad idea. There is nothing wrong with an entrepreneur trying to retain as much equity as possible with him/her. Also though convertible debt is not the most effective tool, angel investors worldwide have used it to fund start-ups they believe in. If you are trying to create an ecosystem here then dont try and play god. Be an educator and facilitator.
I was planning to send my Executive Summary across. Anything specific I should watch out for except the one’s above?
Thanks,
Rajiv.
Hey, send me the plans, but only hard copies and make sure they are atleast 200 page.
Would be even better if you didn’t print anything on pages 2-199, only print on page 1 and page 2. Leave rest blanl.
I need the paper to make notebooks in my office hahahahaha
With this cluelessness in the marketplace, our esteemed President is urging SBI to setup a venture fund for Rs 5000 Cr. Good luck SBI. Being a public sector unit, SBI is bound to give out information under Right of Information Act. Bunch of jokers will apply for funding and track their status through Right of Information Act.
But all this will cease when a role model is established. We need detailed stories of successful Indian ventures on how they started out with their ideas and how they went about making it big.
> Another plan was trying to raise debt from angels at 9% because that is
> higher than the fixed deposit rate ?
Now that is unique 🙂