Which VC’s would care?

Have profitable business, my second time around. Millennial market, scalable, long experience in business, developed and sold similar business 2000-2007, space blew up to billions right after sale. Have another slam dunk plan in business where a billion dollar biz JUST went out, spent years there w/ contacts to reproduce. Which VC’s would care? any suggestions?

  • Why is your first thought to raise capital from a VC? Why not bootstrap your idea first and see if you can make it grow to the point where VCs start contacting you instead of the other way around.

  • If you already had exits it would be a) a slam dunk to fund it yourself b) get investors based on your track record.

    • Agreed. I don’t understand people that have had exits and have their own funds but choose to risk other people’s money. If I was a VC and the founder didn’t believe enough in his own product to put up his or her own money, I would never invest in it. Now if you had no money and was looking for an investment, I get it. But otherwise that’s bogus. In my opinion.

      • (I’m a VC.)
        It’s not that simple.

        1) Just because you sold doesn’t mean you’re filthy rich. Maybe this person has $4m. That’s a nice net worth, but you wouldn’t want to put $2m into a business — especially if you have a spouse and kids

        2) Self-funding is a double-edged sword. On the one hand, you answer to no one. On the other hand, it’s all too easy to keep funding something because it’s your baby. I’ve seen a lot of self-funded entrepreneurs blow through a lot of money implementing their dream project only to find out no one else shares the same dream. Product-market fit is important, and being accountable to other people encourages a founder to find that fit ASAP.

        3) (Good) VCs provide more than money: they provide feedback, advice, connections, emotional support, etc.

        4) Frequently, I’ll see a well-off founder put some money into their business (e.g. $200k or $500k) to get it started, then go to VCs when they need $1m+. Putting in $300k into your own business shows that you believe in yourself, but it’s perfectly fine to draw the line at some point.

        VCs won’t blink twice if you raise money even though you can afford to self-fund. Here’s a good example: http://recode.net/2014/01/28/medium-evan-williams-post-twitter-media-startup-raises-25-million-round/

        • Typically VCs will invest in a entrepreneur whose been successful even if they’re filthy rich because they assume, and rightly so, that what’s more important is the founder and not the idea.

          A good founder can start off with a bad idea and eventually pivot to a good one; but a founder who has no track record whatsoever of success is a huge gamble.

          That’s usually when VCs pay more attention to details like their business plan, market size, and the qualifications of the team members, etc.

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