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Because most people doing things are not worthy of investment (i.e. crappy ideas, bad execution, not ready for investment, etc)
by charlesdm 7y ago
Because most people doing things are not worthy of investment (i.e. crappy ideas, bad execution, not ready for investment, etc)
- o-__-o 7y agoAgain way too many barriers to entry. I just need $100k to prove my idea. These funds have billions. They won’t lend 100k because it has a prototype app, a handful of interest, but no investor pitch? But they will give $1m to someone who can pitch a dream with no product? Please come to me with $100k and I’ll offer you simply a guaranteed 0% return (no loss on investment) so I can pad my bank account and make “real” investors interested because it makes us look like we can manage our money. It’s all smoke and mirrors and I wish I could get access to the same cheap money big corps get. $300k at 6, 7, or 10% interest is just robbery when public companies and home owners are walking away with 2-3% APRs
- charlesdm 7y agoLol dude, "just" $100k. Barriers to entry? Totally honest: I'm an investor and I wouldn't invest $100k in you with a mentality like that. We're all in this to make money. What you need is to prove your idea. No one is going to put $100k (or $100 million for that matter) in an untested idea, unless you have a relationship with an investor. And investing is a relationship business. If a friend whom I trust and I know is a talented chef comes to me with a restaurant idea, I'll consider investing. If a random person comes to me, there is <10% chance (unless his food is absolutely amazing in every regard) that I will consider investing. I'm happy to invest in a good tech business. But most things that I see just aren't great businesses. You're likely in the US, but many EU countries have investment entities (generally funded by EU funds) that "give out" loans at 3% APR. If you want it, you can get it done. But there are very few barriers to entry. A good idea in need of funding will find funding.
- shifto 7y agoMight be a bit late but do you have some more info on these EU funds? I'm just a very technical guy but somewhere on the horizon there will be a point where our proto is matured enough we probably should seek some funding if we want to do something with it. Thanks.
- charlesdm 7y agoI'm not up to date on the particulars for each country, but where are you based? Happy to help if I can.
- shifto 7y agoI'm based in the Netherlands. After my post I went searching and found we have a "early phase funding" from the government. https://www.rvo.nl/subsidies-regelingen/vroegefasefinanciering-vff https://www.rvo.nl/subsidies-regelingen/vroegefasefinancieri...
- o-__-o 7y agoI have ideas, i have executed on them and I’m up 500k in pure profit. But investors like you are hard to find. But investors wanting to pay $5m to start a mechanics for Uber app when there are several in the market? Everywhere. So my options are simply do something I don’t want to do to get investors (read: become an employee again), get an SBA Loan at 9%, bank loan at 6% or remortgage my house at 2%. I shouldn’t risk homelessness for cheap money and neither should investors buy let’s get real — $100k is a monthly rounding error for them