I`ve spent the best part of the last year going through the 1st round of funding for my new business www.PeoplePawn. I have spent $1000`s of dollars networking through professional contact groups, start-up support environments as well as direct marketing through local and business print media. No matter what you are seeking, I would be highly suspicious of anyone that can guarantee your funding. Consider asking them for references - call and/or visit local references.....if there were such a service, no-one would ever need funded if it were a matter of paying a fee and aquiring the cash you need. I am a member of the www.nwen.org and I get propositioned by "so called" service providers whom trawl the membership rosta and try selling me on a "fee for funding" strategy......be very carefull what you sign, and what you spend your hard earned funsing on. Good luck.
---Patrick Lawrence Kane
I agree totally that it is virtually impossible to "guarantee" funding. There are too many variables - most of which are beyond the control of a service provider. I know we wouldn`t.
I am confused by your statement that you have spent $1000`s over the past year. Do you mean that you spent this money on networking (groups, functions, etc) with the purpose of acquiring funding? Was it successful?
I`d like to offer the following thoughts on the topic. First of all,(so you know where I`m coming from) we don`t raise capital for our clients - but we do offer services and support to help them do it. We have been in this business for several years plus we each brought years of experience to the company.
1. It is very difficult for a 3rd party to raise capital for an early stage enterprise.
Even those who are sincerely and honestly trying to do this - have a fairly low success rate.
If their compensation is success based, to survive economically they must
Be selective in choosing clients
Be "well" compensated for the successes they have.
Food for thought,
With almost any private equity funding scenario - you, the entrepreneur and your team will HAVE to be an integral part of the process - usually beginning after an introduction.
Most entrepreneurs say they don`t know any investors. Yet most early stage capital comes from the entrepreneur`s network or their`s. (ie first or second degree of separation)
So ask yourself - how much is an introduction worth?