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bytenram

posts: 55

Jan 06, 2008 9:25 PM ET Quote Report Abuse

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Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front.

I have seen these companies many times allow you to post a statement or request for funding and then at the end of the process you have to PAY. I mean…why not ask you to pay before all of the work has been put in.

It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case.

I am not saying my business idea is any greater than the next but I have a great idea that has been proven to work in the past. There has been one company to do what I want to do and they sold out and the business closed due to the owner passing away.

I have a unique opportunity to get a similar business going and can’t for the life of me find 100k that I need to get this business going.

I mean even 30k would get the business open and making money. Just wouldn’t have any cushion for several months.

Have you dealt with similar issues? How did you over come these issues?

Ok…that is enough of my ranting….I am just getting a little frustrated at this point. I have several people interested in partnering with me and they know where I we can get the funding but they are not as dedicated in starting a company like I am. They are up in age and want to take less risk at this point as they are financially stable. Anyhow…ok…I am off now…Hope you all have a good one…

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Come check me out at www.bytenram.com. Your one stop shop for all your technology needs!

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LiveWise

posts: 89

Jan 06, 2008 10:12 PM ET Quote Report Abuse

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Sometimes businesses are like babies. Everybody has the cutest baby and they are also the smartest and if you went up to people and asked if your baby is cute and should be in modeling, I am sure that people may tell you that you have a cute baby (Those who think your baby is ugly won`t tell you in most cases.) They may even state that they will help you get your baby into modeling.

A Modeling agency will always tell you that it`s perfect! They know people that will want your particular type. Just pay $XXXX and they will make a portfolio and put your pictures in front of the right people. If those don`t work out, then it`s your fault that you didn`t have the right look and they gave it everything. Eventually, you will give up and they will be the first to say they are sorry. But if you succeed, they will be the first to be right there and let you know that they contributed to the success. Either way, they are just trying to appease you until you succeed.

Have you tried some investors in your community? What about the Angel investers? If you had 2 people put down $15,000 instead of just 1 person, would that matter? I haven`t used the on-line thing, but I think I would want to work with somebody locally with that amount of money.

People have a right to be careful with their money. They didn`t get rich by just giving it out. They evaluate the risk and return. Make sure that you have sound business practices and give them the business plan so they know that you are serious.

Good Luck!

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bytenram

posts: 55

Jan 06, 2008 10:19 PM ET Quote Report Abuse

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Guess my question wasn`t stated properly.

My question is why do you always have to pay companies to find investors. We can`t we get to the firm etc. without having to pay these online companies. I mean, we are trying to get startup funding but everywhere we go people are trying to nickel and dime us.

I understand it is going to be hard and about the babies etc. I just don`t feel like paying a directory online that says they have 1500 investors you know.

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Come check me out at www.bytenram.com. Your one stop shop for all your technology needs!

www.flipitbig.com - Your resource to efficient Real Estate Investing

ELCEO

posts: 43

Jan 07, 2008 1:14 AM ET Quote Report Abuse

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Bytenram,

I totally share your frustrations and have been dealing with the same. None of us at this point in our venture really have the money to throw out there to investors to get them to look close at our biz plans. However, there are better ways:

FundingUniverse.com is a site you can actually post your business plan for free (or at least part of it) and get plugged into a network of investors looking for start-ups. There are reasonable fees to get your plan rated ($19.95) and to post your entire plan on the network for a small monthly fee. At least your not having to cough up $195 to see who is interested in your plan like other sites out there.

Angels for the most part are the best place to focus. There are ones that don`t charge you to get in front of them. Ssearch out the local Angels in your area and try them.

CraigL

posts: 9051

Jan 07, 2008 1:56 AM ET Quote Report Abuse

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Okay, but look at it from the investors` perspective. They have money. You don`t. They`re getting "hit on" constantly, with whatever possible kinds of ideas. At some point, they`re just going to put up more and more walls. One of those might be that you have to put some money into your request to be looked at. That would quickly eliminate a lot of the "noise," right?

I don`t know the answer particularly, because I`m not an investor. I`m just contemplating the rationale behind your being asked up front for money. I guess I`m thinking "ante" money when you get into a poker game. The investor`s time is worth something, after all, even where it`s looking at potential investments.

Roblue

posts: 74

Jan 07, 2008 7:26 AM ET Quote Report Abuse

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Guess my question wasn`t stated properly.

I understand it is going to be hard and about the babies etc. I just don`t feel like paying a directory online that says they have 1500 investors you know.

I read your original post, and, believe me, I have done my share of ranting and raving in the past when I wanted financing to establish my business.

I wanted to let know of a resource I used that does not charge you if they can`t find you an investor. If they do find you an investor, they charge 5 points on the amount of money the acquire for you.

Try www.thesnaploan.com.

robertj

posts: 1458

Jan 07, 2008 12:26 PM ET Quote Report Abuse

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Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front.

It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case.

I have a unique opportunity to get a similar business going and can’t for the life of me find 100k that I need to get this business going.

I mean even 30k would get the business open and making money. Just wouldn’t have any cushion for several months.

Have you dealt with similar issues? How did you over come these issues?

Here are some quick comments/ questions:

Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front. That is how they get their revenue. Also, if they charged a “success” fee they would be subject to regulation by the SEC.

It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case. A great idea is important and a good start – but not enough.

I have several people interested in partnering with me and they know where I we can get the funding but they are not as dedicated in starting a company like I am. I’m not clear on this point. If they know where you can get funding – what is the delay?

-------------------------

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bytenram

posts: 55

Jan 07, 2008 12:52 PM ET Quote Report Abuse

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Robertj,

The delay is they have lives that are very busy. The other aspect is we live in different states and have conflicting schedules it is hard for us to find a time to get together. Also, because they already run businesses they have obligations they must meet. And I am rather impatient person. I like to get the process started and start working towards a goal. I am not saying they will not come through; I just don`t want to wait until they have the time or get around to it. It could be months. I want to do all I can and if I find funding first then so be it. Maybe I shouldn`t be this way, its just I am tired of where I am right now and want to do something to better myself.

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Come check me out at www.bytenram.com. Your one stop shop for all your technology needs!

www.flipitbig.com - Your resource to efficient Real Estate Investing

robertj

posts: 1458

Jan 07, 2008 5:29 PM ET Quote Report Abuse

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Why is it all of these investor networks online that want you to post your plan with them for investors want to charge crazy amounts of money up front.

It seems so hard to get to investors and while I know we all feel we have great ideas and we should be funded that isn’t the case.

I have a unique opportunity to get a similar business going and can’t for the life of me find 100k that I need to get this business going.

I mean even 30k would get the business open and making money. Just wouldn’t have any cushion for several months.

Have you dealt with similar issues? How did you over come these issues?

Is your frustration at these "investor networks " because

1. they charge to allow a listing

2. They don`t tell you how much it is until the very end (a concept that I see all to often on many web businesses)

3. They charge too much?

- How much do you think they should charge?

bytenram

posts: 55

Jan 07, 2008 6:15 PM ET Quote Report Abuse

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Robertj,

the prices seem fair from what I have seen. The thing that bothers me is there is no mention of fees until the very end when you hit the SUBMIT button. then woops...$59 for this $129 for that and so on.

$59.00 for a company that says they match you with investors is ok if there was some way to verify what they say they do. References maybe. This is the most frustrating aspect.

-------------------------

Come check me out at www.bytenram.com. Your one stop shop for all your technology needs!

www.flipitbig.com - Your resource to efficient Real Estate Investing

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