4 ms·

Do these guys really help? (helping to raise capital)

14 points by tx 19y ago

Here at Pikluk (http://pikluk.com http://pikluk.com) We are in the process of finalizing our business plan and trying to get funded. I was wondering if any of you guys had any experience dealing with sites like http://www.fundingpost.com http://www.fundingpost.com and http://www.gobignetwork.com http://www.gobignetwork.com They all want you to pay to submit a "company profile", not much - hundreds (at least not thousands) of dollars. But I am wondering - are they for real? I have never heard of any company that got funded this way.

mikesabat 19y ago
Call them and ask for references. Please be sure to come back and tell us what you found out :) I don't know anyone that has used them, but I do read Wil's blog often.
menloparkbum 19y ago
I doubt it. go big network is 90% bullshit. However, in Silicon Valley, there are a number of guys who are well connected in the venture community and can help you find funding. We had such a guy help us out for a year and I'm pretty sure we wouldn't have found our great funding deal without his help.
- tx 19y ago
  Well... lucky you, SValley residents. :-) We're based in Austin, TX and so far has not developed any connections with valley people.
  - jamiequint 19y ago
    move? or fly and visit? There is no lack of networking events in SV.
  - jsjenkins168 19y ago
    As I'm sure you've noticed, Austin investors are too conservative anyway :(. VC money is still dried up post-bubble except for Austin Ventures and supposedly they are starting to move away from higher risk investments too. You might try to meet some angels through the Central Texas Angel network events around Austin. CTAN probably wont look at you unless you have solid revenue (conservative bunch), but you might be able to convince an angel to seed fund you privately.
  - sarosh 19y ago
    An asymmetric attack you may wish to consider is to talk to the larger law firms who represent VC/PE firms. Fulbright & Jaworski L.L.P. on Congress (downtown Austin) is very well connected and could point you in the right direction. Alternatively, go to a http://www.bootstrapaustin.org/ http://www.bootstrapaustin.org/ event and see what other entrepreneurs suggest. Austin is an amazing city.
    - tx 19y ago
      Woow. Yet another local resource I had no clue about. Thanks a lot.
      - sarosh 19y ago
        There are lots of 'niche' resources in Austin and you have to do a lot of legwork to get to them. Additionally, if you (or any of your founders) are alumni of the University of Texas, the networking events at the MBA school are valuable.
- jsjenkins168 19y ago
  If you dong mind me asking, how did you meet this guy? Were his referrals done at a cost or for free?
  - menloparkbum 19y ago
    He liked our company and contacted us. He did more than referrals. Essentially, he raised our series A for us. We paid him a handsome fee (funds obtained by another angel investor and our CEO, who was already wealthy) as well as giving him a chunk of stock options. He's a great guy. I'd rather not reveal who I am, but the person in question has a relatively high-profile blog.
sama 19y ago
The middleman approach to funding doesn't appear to work too well--none of the successful companies I know went that route, but many of the trainwrecks did. It's probably not impossible, though. You would do well to remember that investors need you much more than you need them. If you've got a good idea, market, and team, raising money won't be your problem. Lawyers, professors, other companies, even networking events--it's a very solvable problem.
ivankirigin 19y ago
Try to meet potential funders in person. Or try to meet people that will recommend you to a funder. That is the way (I'm told) that the vast majority of deals happen. It's all about networking, which is best accomplished in person.
- ALee 19y ago
  Agree with ivan here. We received our first VC introduction from a cold e-mail we gave to another entrepreneur. She's been instrumental in our development and is a great person to have on board.
pg 19y ago
I have never heard of a successful startup that got funded this way either. VCs tend to get deals through referrals from people they know, like angels, lawyers, professors, and other founders.
- jgrahamc 19y ago
  It's almost a prerequisite to getting funding that you are smart enough to figure out how to get a referral into a VC firm.
skmurphy 19y ago
"But I am wondering - are they for real?" They will really take your money. If you've exhausted all of your social capital and none of your friends, folks you have prior shared success with (e.g old bosess, co-workers, team members, customers, suppliers), family/relatives, and current advisors (e.g. lawyer, CPA, banker, others) are willing to help you then you can pay these guys to broadcast your business plan or profile. You might ask them for three references who actually raised money as their testimonials seem to revolve around arranging meetings where founders can touch the hem of a VC's cloak--but no money seems to have changed hands. Alternatively you might reconsider your business model, as a parent I would be willing to pay pikluk so when I see "The PikLuk Service is FREE and it provides a safe Internet experience for your children." I wonder how you are going to make money in a way that doesn't conflict with your primary brand promise.
rms 19y ago
I expected you guys to get into YC... maybe next time. If I had a bunch of money I would fund you.

14 points by tx 19y ago

mikesabat 19y ago

Call them and ask for references. Please be sure to come back and tell us what you found out :) I don't know anyone that has used them, but I do read Wil's blog often.

menloparkbum 19y ago

I doubt it. go big network is 90% bullshit. However, in Silicon Valley, there are a number of guys who are well connected in the venture community and can help you find funding. We had such a guy help us out for a year and I'm pretty sure we wouldn't have found our great funding deal without his help.

tx 19y ago
Well... lucky you, SValley residents. :-) We're based in Austin, TX and so far has not developed any connections with valley people.
- jamiequint 19y ago
  move? or fly and visit? There is no lack of networking events in SV.
- jsjenkins168 19y ago
  As I'm sure you've noticed, Austin investors are too conservative anyway :(. VC money is still dried up post-bubble except for Austin Ventures and supposedly they are starting to move away from higher risk investments too. You might try to meet some angels through the Central Texas Angel network events around Austin. CTAN probably wont look at you unless you have solid revenue (conservative bunch), but you might be able to convince an angel to seed fund you privately.
- sarosh 19y ago
  An asymmetric attack you may wish to consider is to talk to the larger law firms who represent VC/PE firms. Fulbright & Jaworski L.L.P. on Congress (downtown Austin) is very well connected and could point you in the right direction. Alternatively, go to a http://www.bootstrapaustin.org/ http://www.bootstrapaustin.org/ event and see what other entrepreneurs suggest. Austin is an amazing city.
  - tx 19y ago
    Woow. Yet another local resource I had no clue about. Thanks a lot.
    - sarosh 19y ago
      There are lots of 'niche' resources in Austin and you have to do a lot of legwork to get to them. Additionally, if you (or any of your founders) are alumni of the University of Texas, the networking events at the MBA school are valuable.
jsjenkins168 19y ago
If you dong mind me asking, how did you meet this guy? Were his referrals done at a cost or for free?
- menloparkbum 19y ago
  He liked our company and contacted us. He did more than referrals. Essentially, he raised our series A for us. We paid him a handsome fee (funds obtained by another angel investor and our CEO, who was already wealthy) as well as giving him a chunk of stock options. He's a great guy. I'd rather not reveal who I am, but the person in question has a relatively high-profile blog.

sama 19y ago

The middleman approach to funding doesn't appear to work too well--none of the successful companies I know went that route, but many of the trainwrecks did. It's probably not impossible, though. You would do well to remember that investors need you much more than you need them. If you've got a good idea, market, and team, raising money won't be your problem. Lawyers, professors, other companies, even networking events--it's a very solvable problem.

ivankirigin 19y ago

Try to meet potential funders in person. Or try to meet people that will recommend you to a funder. That is the way (I'm told) that the vast majority of deals happen. It's all about networking, which is best accomplished in person.

ALee 19y ago
Agree with ivan here. We received our first VC introduction from a cold e-mail we gave to another entrepreneur. She's been instrumental in our development and is a great person to have on board.

pg 19y ago

I have never heard of a successful startup that got funded this way either. VCs tend to get deals through referrals from people they know, like angels, lawyers, professors, and other founders.

jgrahamc 19y ago
It's almost a prerequisite to getting funding that you are smart enough to figure out how to get a referral into a VC firm.

skmurphy 19y ago

"But I am wondering - are they for real?" They will really take your money. If you've exhausted all of your social capital and none of your friends, folks you have prior shared success with (e.g old bosess, co-workers, team members, customers, suppliers), family/relatives, and current advisors (e.g. lawyer, CPA, banker, others) are willing to help you then you can pay these guys to broadcast your business plan or profile. You might ask them for three references who actually raised money as their testimonials seem to revolve around arranging meetings where founders can touch the hem of a VC's cloak--but no money seems to have changed hands. Alternatively you might reconsider your business model, as a parent I would be willing to pay pikluk so when I see "The PikLuk Service is FREE and it provides a safe Internet experience for your children." I wonder how you are going to make money in a way that doesn't conflict with your primary brand promise.

rms 19y ago

I expected you guys to get into YC... maybe next time. If I had a bunch of money I would fund you.