Monday, April 02, 2007
Startup
Hi Pud,
I recently created a business plan for an Internet company with some college roommates. I received a rough quote from a web development firm that the website will cost roughly $500,000.
As someone who doesn't just have $500K just lying around, how should I acquire this type of capital? I know a little about venture capital and angel investors, but I'm not really sure where to begin.
Help!
Best Regards,
Elliot
20 years old
Boston, MA
Elliot,
There's one obvious problem here.
You said that you "and some college roommates" came up with the plan. Do any of you know how to program? If not, you need to find a business partner who does. In fact, you can probably drop your other partners.
And since your new business partner (the programmer, who you may or may not already know, but you need him) will be doing most of the work initially, it may be fair to give him more equity.
Build the site. Then get traffic & a little momentum, show growth, and make a little $. THEN come back and ask me how to raise money -- you'll be in a much better position.
Rock on and good luck!
Pud
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