Forums: Discussions for entrepreneurs and small business.

My company is trying to find investors for a wind farm development project we have been working on.  We already have 330 acres under control in our area of interest and are ready to start measuring the wind resources in the area.  The problem we are having is trying to find investor capital.  We have contacted a few VC firms and they all tell us that the project is too small for them (were needing a total of $175,000).

Where can we find investors that would have an interest in this type of thing?  We are offering equity in the project which has great upside potential, in return for their investment.  We are willing to offer equity in the project as a commission to anyone that brings someone to the table that actually invests in the project.  Any help would be appreciated.

Kenny

Kenny,

As you indicated, the amount you seek is well below the institutional VC level and probably leaves you out of the "mainstream" angel groups if you're not on the path to a future VC involvement.

You probably have to reach out to the "private investor" type -especially those who share an affinity for your project.  Having a well designed offer and the proper documentation will greatly improve your chances of success.

FYI, I'd be cautious about offering a commission to unlicensed "finders".

If you'd like to discuss the specifics of your situation, feel free to send me a PM or contact me directly.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Many Texas communities have passed an additional sales tax that funds an Economic Development Commission in their community that provides low interest loans (and sometimes grants) to for-profit businesses for startup or expansion.

Check with the ECD in the area of your land.

Best regards,

Molly Donaldson

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Start Here. Go Far. LaunchX

You should not only answer the question 'where' but also 'how'. Try reading what equity investors focus on.

Hi Gunther, I just saw your post and thought to chime in.

Robert made a good point when he said that your capital requirements of $175,000 will place you outside the investment criteria of most professional private equity investors.

But how confident are you that these capital requirements are realistic? What do you plan to do with these funds? I have worked on a quite a few alternative energy projects over the last couple of years and thus, I know that acquiring the land or long term leases isn't the problem. It's the capital investment into the actual turbines, because in most cases you will need quite a few to operate effectively. Another problem is overcoming regulatory hurdles because in most states electric utilities have some sort of a monopoly and control access to the electric grid.

You mentioned that you are willing to grant an equity position in your company in return for the investment, but do you really think that you can achieve profitability based on such a minor investment?

If not, what's in it for the shareholder?

If you plan to undergo another, perhaps more substantial round down the road, let's keep in mind that your equity stake, along with those of early stage investors get diluted (watered down) every time you do that; so that's not a very compelling value proposition.

If you're interested, please feel free to send me a PM and we can discuss your project in greater detail. Based on the information you provided it's really hard to point you in the right direction.

I hope this helps.

Mark

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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com

Hi, GunterLand,

For this money perhaps You can get Wind speed measurements made :-))

1MW unit cost 1.5 million Euro, EXW, plus transport, instalation, accesways, crane...

Now, I am inventor who invented new kind of Windpower stations that would be cheaper, need NO electricity to be started nor for turning into wind nor for speed regulation, use wind at 5m/second or less and need not be stopped even in strongest wind.

Instead of using land, my PSs raise its quality and usability because lower part of construction can be used as >>greenhouse<<, even on totaly unfertile ground.........

One instalation can be >>tailored<< to location to use whole range of wind speeds and contain 1, 3, 4, 6 or 7 turbines and generators, unless it is combined with my Solar PS, when it can have 3 or 6 turbines with generators, but generators can be up to 3 MW capacity each, while Solar is 1MW, but with capacity to work 24/7 or >>On Demand<< in peak consumption periods when Grid pays premium prices for electricity.

Further, instalations can be themselves be grouped into groups of 3 or 7, and since turbulent wind is not a problem, such groups could be installed close together.

Windpower stations use strongest wind available automatically in case of laminar flow, therefore maximizing energy harvesting.

I need just small investment of 50 000 Euro to finalize engineering drawings so production can start, and I could guarantee You discount of 30% from regular Production Licence price if You would like to start production, or selling price for at most 1 million Euro per MW capacity instaled, direct from Croatian Factory. Since there is no need for special cranes at instalation time, no need for building accesways nor special crane fundation preparation, no speciall costly transport and all benefits are included, You would get very cheap electricity and instalation that would be guaranteed to last minimum 30 years with little to no maintenance and repairs, which would be easy because generator(s) are on the ground and  turbine(s) need  no maintenance nor repair.

I would prepare for You plan for Your instalation so it would cover that ground optimally and could be built in stages, according to financing available.

With minimal profit of 400% on electricity production price even when market price fall in half, You would have no problem finding investors for building even full capacity possible on this ground you allready have.

Unfortunately, for optimal configuration of production capacity, measurements of wind speed are necesary, and this usually last one year. It would help if there are allready some Windpower stations in neigbourhood, as You can then simply buy their measurements, which would cost You less and recover some expenses paid to owner of this WPSs :-))

Alternatively, 1MW generators could be installed first and upgraded to 3MW later, or constructions can be filled up with additional turbines and generators later, but for this there should be appropriate construction built with places for turbines and generators ready.

You can plan to have combined Wind and Solar instalation also, which would still better use the land available, and in this case there would be still easier to get investors.

But best use of cheap electricity produced would be also very lucrative business, at same time of great help againest Global Warming process, as it permanently removes CO2 from air and produces useful and marketable products, for one of which I could at once supply market, and when removal of CO2 would not be necesary, same factory can recycle it producing Methane, and eventually producing fertilizers or plastic from it.........

With such a business plan, one can get even non returnable >>Carbon Credits<<, so You can get Your Power Stations extremely cheaply, if not for free, and You can count they would pay themself back very soon..........   

If I get money now, production would start in January.

Alternatively, I could offer You 30 times more money returned after I sell first Production License.

If You are interested to invest money right now, please contact me by PM.

Offer is valid for 2 weeks only, as I expect finalization of negotiations with some investors, but need money urgently so I cannot just wait.........

Regards from Croatia, homeland of one of greatest inventors, Engineer Nikola Tesla! 

Marijan Pollak, IT SA/SE 1st. Class, Instructor and Team Leader, retired

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