Easy to Raise Capital?

4 Replies

I have an idea, a really good one, but will an investor value my idea?

Will I be able to raise a lot of money?

Or will I have to give up 50% of my company?
Or how much do you give up?

Hello Slilmen,

I'm glad to see your enthusiasm. However, I think everyone would agree- 1) it's impossible to evaluate l, with you in detail, or at all, describing what your ideas is, and 2) raising money is never guaranteed, and it has part to do with your deal, and everything to do with you, and your determination to raise it.

A "really good idea" is worth almost nothing.  Sorry, but that's the reality.   An idea that you've developed into a viable product or service, done some market analysis and built a business plan around may have some value.  An idea that been turned into a small business with potential to grow may be worth quite a bit.

Yes, you will give up big chunks of ownership to get investors.  If you manage to raise, for example, $1 million, and you only want to give away 50% ownership of the company in exchange for that $1 million, then you believe the company without that $1 million in new cash is already worth $1 million.  A "really good idea" is rarely worth anything close to that.  An existing, viable, operating business might be.

Originally posted by @Jon Holdman :

A "really good idea" is worth almost nothing.  Sorry, but that's the reality.   An idea that you've developed into a viable product or service, done some market analysis and built a business plan around may have some value.  An idea that been turned into a small business with potential to grow may be worth quite a bit.

Totally disagree. You realize when people build a site and raise money. All they have is a business plan. A business can burn through millions before its up and running.

But then people like you make me question it.

How do i get there? 

Because all i hear are people like you. 

@Slimen Rouri , if you are looking for seed capital, you will most likely raise it from "Friends & Family" (and fools) or Angel investors.

If you haven't already done so, I would suggest reviewing info on the Angel Capital Association's website - http://www.angelcapitalassociation.org/faqs/

And yes, an idea is not worth much until it is vetted in the market. The market will speak on the true valuation.

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