I've been kicking around an idea for a new business. I think it will take quite a bit of software development to get it off the ground. I can't afford to pay for all the development myself. Do you think I should look for Venture Capital for the business? I would probably need $200k to get a prototype built. What about angel investors? Do I have other options? I can write some software myself, but I couldn't do the entire project.
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For the amount you need, angel investment is the way to go. VC firms don't generally deal in amounts that small and will often place more pressure on you to maximize their returns quickly, while angel investors can often take a longer-term view because it's just their own money they're investing, not money from a firm or group of people. (Do note that I'm speaking in sweeping generalizations here; this is not always the case.) A good option might be to find another interested developer who has some money of his/her own to help fund with. Keep it in the family, so to speak. |
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Banner Low!
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I personally don't believe in the usefulness of Venture Capital. if you really believe in yourself ask family, and friends for small donations or investments that you can use to get your product off the ground. Pay them back as you make a profit. This way you retain full ownership and control of your product. |
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