Venture Capital - How does it work

[Admin]

Does anyone know hoe venture capital works?

 

Say you have an idea that you believe could end up being extremely profitable however you don't have the funds to get it going so is venture capital a solution or are there other, better ways, of getting an idea off the ground?

 

 

[Jabiru Phil]

Does anyone know hoe venture capital works?

Say you have an idea that you believe could end up being extremely profitable however you don't have the funds to get it going so is venture capital a solution or are there other, better ways, of getting an idea off the ground?

 

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[Admin]

Thanks Mate

 

 

[Admin]

Just phoned them, as I am currently unemployed they can't offer anything. Must be working and then can apply for $30k for startup and up to $500k for existing business enhancement. I would be looking for say a progressive draw down totaling $250k over 6 months with substantial returns (possibly 300% or more) in year 2 and on

 

Basically, in simple terms, employment of 3 people, say $20k costs and say $50k in advertising. 3 months before startup phase completed and then revenue begins. Break even after 6-9 months and full EOY return is kept as retained earnings for further expansion. Year 2 and above is full ROI at 300%+

 

 

[Guest john]

Just phoned them, as I am currently unemployed they can't offer anything. Must be working and then can apply for $30k for startup and up to $500k for existing business enhancement. I would be looking for say a progressive draw down totaling $250k over 6 months with substantial returns (possibly 300% or more) in year 2 and on

If you're thinking of becoming a MILLIONARE in aviation, for either the short or long term, then you will have to first obtain a MULTI MILLION DOLLAR loan as a start up & when its all over bar the shouting you may end up with say 1 million or even less, however you can at least say tell the world that aviation made you to become a millionare.

 

 

[Admin]

No, its not in Aviation or I should say that could only be 5% or less of it, in fact it doesn't need to have anything to do with aviation at all

 

 

[facthunter]

Generally if you can get rich quick, you can go broke real fast the same way. The more you gear the quicker it happens. Smart (if unscrupulous) people use someone else's money and give them a small reward and keep the big rewards, justifying it by saying they are taking the risky decisions, but as it is with someone else's money that's a false claim

 

IF it seems to good to be true, it usually is, and IF it is that easy why doesn't everyone do it?

 

The sales % is usually more than the manufacturer's profit, so would you rather sell it or make it?

 

IF you are working for someone you will never get really rich , but you can always blame the boss.Nev

 

 

[Admin]

People are already getting very rich from it but this is completely new and revolutionary and will leave all of them behind which is why secrecy is a big part of it at the moment. I once had a job many years ago as the "Business Development Manager" for a large corporate and they said at the beginning that if I come up with 100 ideas and only 1 is accepted and works extremely well then I have been successful. At that firm I did come up with a lot of ideas all of which could have been successful but one that they approved ended up being their most profitable service ever and ended up being 40% of their whole revenue.

 

Another one also many years ago when I was in construction Project Management. There was a pipe that wasn't approved for use in Vic so I got it approved so the company I worked for could be the sole distributor. But, what I did was to set up a 2nd company under a trust of the owners children's names, who had a different surname, to the owners and sell the pipe to our competitors. No one knew that the 2 companies were owned by the same people. This way we could give discounts to our competitors of what we liked and anyone tendering on the same job as us would not get a discount so we could win the tender and keep our company going well. It just started off as an idea and worked because when the owners sold both business's for a huge profit they retired, and although I got a nice payment for my services, I wasn't allowed to work in the construction industry for 2 years under the terms of the sale agreement that I had to agree to.

 

As the advert says, from small things big things grow

 

 

[facthunter]

PS. Don't take financial advice from me. You might end up like me. Nev

 

 

[fly_tornado]

This channel has everything you ever wanted to know about startups

 

https://www.youtube.com/user/docstocTV

 

 

[2tonne]

I know a little bit about VC funds because this gets used by startup and early stage biotech/medical companies (I have clients in the biotech area).

 

There are different types of funding for early stage companies. First, there are angel investors who tend to be high net worth individuals willing to kick in a reasonable amount of capital in select areas of technology. E.g, there was one Australian biotech company that started off with investment from two owners plus an angel (who kicked in around 1 million). Angels invest where they see a quick exit and prospect of high return (ie chuck in some cash in the expectation of IPO within 6 months, hope to at least double their money given the high risk). In the example I mentioned, the angel did double his money in six months when the company listed.

 

I believe VC funds target a specific sector (e.g., ICT or biotech - biotech/biomedical is the only sector I have any understanding of how this works in) and will raise a fund, for example 200 million, and then make a number of investments in companies over several years. They spread the money over several investments to reduce risk. They also have an exit strategy that is a bit longer term (years instead of months) in order to get their return. There was one VC fund that had a big success recently where they had invested around 10 million in an AU company and sold the company several years later for closer to $100 million. They tend to do some pretty serious due diligence before investing.

 

I see that FT has just posted a link to a youtube channel that will probably provide useful information, compared to what I have posted here!

 

 

[Admin]

That video doesn't really have what I am after, it is more of a document template system and some docs on learning about creating a small business...I am way past that