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Process of taking on investors

Posted on 1/10/20 at 9:45 pm
Posted by weisertiger
Lake Charles, LA
Member since Sep 2007
2480 posts
Posted on 1/10/20 at 9:45 pm
Has anyone here ever started a company and had to take on investors? How did you find/attract them? How do you determine what is a fair return on their investment? Any advice about this process or things you wish you had done different?
Posted by Doctor Strangelove
Member since Feb 2018
2963 posts
Posted on 1/11/20 at 7:52 am to
Start with family. If they won’t invest in you, no one else is likely too either.
Posted by SiriusBraveFan
Member since Nov 2014
654 posts
Posted on 1/11/20 at 8:15 am to
Try looking into a small business incubator program. You have to be pretty serious to get accepted as a member but many provide mentoring and training, and even guidance through capital raising. Since I am in Lafayette, I am only familiar off hand with the one here that's done very good things. It's called Opportunity Machine. Check it out to get an idea.
LINK

Fyi, early on after starting in Lake Charles, Waitr worked with the Opp Machine.
This post was edited on 1/11/20 at 8:17 am
Posted by southernelite
Dallas
Member since Sep 2009
53177 posts
Posted on 1/11/20 at 9:17 am to
You’ll need to network to find investors. I agree with the point about approaching the incubator in LC if you’re serious.

Each investor is going to have a different ROI expectation and that will depend on the risk. If this is early seed money, investors are going to want a lot of upside.

Know how much you need and what you’re going to do with it.

I’ve sat in on some pitches recently and can send you some pitch decks if you want to see them.
Posted by crazycubes
Member since Jan 2016
5256 posts
Posted on 1/11/20 at 10:46 am to
quote:

Start with family. If they won’t invest in you, no one else is likely too either.
good point
Posted by supatroopa
Member since Oct 2019
142 posts
Posted on 1/11/20 at 2:28 pm to
Are you looking for investors?

I’m always looking to invest in solid businesses and/or ideas.
Posted by weisertiger
Lake Charles, LA
Member since Sep 2007
2480 posts
Posted on 1/12/20 at 3:57 pm to
quote:

I’ve sat in on some pitches recently and can send you some pitch decks if you want to see them


That would be great! Send them to weisertiger0812@gmail.com

We have a product we created in the construction industry and recently made our first sale to a building supply store chain. They issued ya a PO for 240 units. Product should be in store by end of April. For our initial production run we placed an order of 500 units but in order to get our margins where they need to be we will need to order in much larger quantities. We can continue placing orders of 500 to 1,000 without taking on investors but should the product take off once they are in in stores and our website goes live then we would need capital to order in larger quantities.

We have already purchased the domain name and trademarked the name. We have a patent pending on the product that we submitted in March of 2018, so hopefully we hear back about that any day.
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