How to Raise Venture Capital

How to Raise Venture Capital
by Neil Patel on January 21, 2009
©2009 by Quick Sprout

About Neil Patel...  Neil Patel is the co-founder of 2 Internet companies: Crazy Egg, and KISSmetrics. Through these 2 companies he has helped large corporations such as AOL, General Motors, Hewlett-Packard and Viacom make more money from the web. By the age of 21 not only was Neil named a top 100 blogger by Technorati, but he was also one of the top influencers on the web according to the Wall Street Journal.

(A Few) Business/Venture Funding Sources on the Web - 2009 August

(Disclaimer: These resources have not been reviewed or assessed.  Though these resources have been identified through seemingly credible Web-based directories and online references, all dependency upon these resources is at the explicit responsibility and choice of the reader.  It is the sole responsibility of the reader to familiarize yourself with the terms and conditions and risks of each of the resources noted in this article.)

UPDATE:  2009-08-17

Y Combinator
http://ycombinator.com
Y Combinator is a new kind of venture firm specializing in funding early stage startups.  We help startups through what is for many the hardest step, from idea to company.  We invest mostly in software and web services.  And because we are ourselves technology people, we prefer groups with a lot of technical depth.  We care more about how smart you are than how old you are, and more about the quality of your ideas than whether you have a formal business plan.  We make small investments (rarely more than $20,000) in return for small stakes in the companies we fund (usually 2-10%).  Y Combinator has a novel approach to seed funding: we fund startups in batches.  There are two each year, one from January through March and one from June through August.  During each cycle we fund multiple startups.  We've funded a total of 118 so far.  Instead of submitting a business plan or making a slide presentation, you just fill out an application form.  We invite the most promising groups to meet us in person, and we make funding decisions immediately afterward.  Most of the founders in each startup we fund are expected to move to the Bay Area for the duration of the three month cycle.  During those three months we host a dinner once a week at Y Combinator, and at each dinner we invite an expert in some aspect of startups to speak.

UPDATE:  2009-08-11

FundingPost
http://www.FundingPost.com
FundingPost.com showcases entrepreneur company profiles to over 7,500 Real Angel Investors & Venture Capitalists.  FundingPost.com presents Venture Capitalists and accredited Angel Investors with an opportunity to review quality dealflow that matches their criteria.  FundingPost hosts VC & Angel events in 17 cities across the USA.  Early-Stage Venture & Angel Conference with a Pitch-Coaching Workshop. Meet Rohit Bodas, Hartford Ventures; Konstantine Drakonakis, Launch Capital; James D. Robinson IV, RRE Ventures; Jeffrey M. Krauss, Managing Member, Psilos Group Managers; Brian Hirsch, GreenhillSAVP; Jalak Jobanputra, NYC Investment Fund; Elad Yoran, Security Growth Partners; Mark Peter Davis, DFJ Gotham Ventures.  From July 1 - Aug 14, 2009 you can enter your Company into the FundingPost 6th annual Pitching Across America™ competition at no additional cost. Company profiles will be judged by VCs and Angel Investors nationwide.

BreadStreet
http://www.BreadStreet.com
BreadStreet.com, Inc. is an online funding forum and posting service bringing investors and businesses together for profit. We provide instant access to a 10,000 + investor data base. These are the same quality leads list you would pay thousands of dollars for from a lead broker.  But, they are FREE to our subscribers. Both start-up companies and well established organizations are welcome. In the $49.95 subscription you will have investors call you from the funding request you place on our investors board. Additionally, you will gain access to our surveyed investors. Further, you can call up to 10 investors per day. Most investors will recognize the BreadStreet name when you call.

Southeast Private Equity Conference (SPEC)
[a.k.a., Strategic Private Equity Conference]

March 16-17, 2010
http://seprivateequity.org
SPEC showcases emerging growth companies and exposure to venture capitalists, fund managers, and private equity investors representing over $560 Million in investment capital!  This conference offers exclusive networking opportunities, exhibition area, featured speakers, top industry expert education in investor and executive break-out sessions.

SPEC related information...
BlogTalkRadio podcast...
http://www.blogtalkradio.com/Karen-Rands/2008/05/02/Spec-Radio
Host Name: Karen Rands
Show Name: Companies Rave About The First Southeast Private Equity Conference in Atlanta!
Air Date: 5/2/2008 12:00PM - 1 hr
With 150 participants, the first South east Private Equity Conference in Atlanta was an amazing success! SPEC Talk Radio interviews some of the attendees from the first successful Southeast Private Equity Conference 2008 in Atlanta! Here are the companies: www-FILTRx-com, www-hoytgroup-com, www-mychoicenetworks-com, www-concordcapitalonline-com, www-investorwealth-com/mti, www-mycoupster-com, www-maxumgames-com, www-streetchess-org and www-flourishingbusiness-com.

ORIGINAL ARTICLE:  2009-08-07

40billion.com
http://www.40billion.com
40billion.com is the entrepreneurs' micro-funding platform, matching entrepreneurs and investors through an online network of friends and family. We are addressing a $40 billion gap in small-business funding by creating an online marketplace for friends-and-family funding (a.k.a. "love money", microfinance, social lending), fundraising, and investing so that more entrepreneurs can have access to affordable business financing through loans, contributions/donations, and equity partnerships. 40billion.com is owned and operated by 3 Guys in a Garage LLC, an idea incubator for innovative digital-media ventures, headquartered in Atlanta, GA, USA.
 
Angelsoft
http://www.angelsoft.net
Angelsoft is the web-based platform that powers over 450 business angel groups and investment networks in over 45 countries. It provides a comprehensive collaboration environment for over 17,000 accredited investors to invest in early stage deals, and processes thousands of business plans each month.

E.Factor
http://www.efactor.com
"E.Factor" stands for "The Entrepreneur Factor" and represents a vibrant online community and virtual marketplace designed for entrepreneurs, by entrepreneurs.  Entrepreneurs love E.Factor.com because it's a place where they can focus exclusively on making business connections, negotiating deals, exchanging information, and advertising their products and services.  Comprised of businesspeople and investors across an array of industries around the globe, the E.Factor community is ideal for entrepreneurs looking to increase their brand exposure, establish a network of high quality contacts, and acquire the funding needed to take their enterprise to the next level.

fundfindr
http://www.fundfindr.com
fundfindr is your FREE online venture dating mentor. Register today to broadcast your venture! Post your profile and pitch. Find partners, connections and services. Free access to a database of 170 angel investors. Compete for up to $20,000 in prizes. Get feedback. Get fundable. Get funded.
 
Funding Universe
http://www.fundinguniverse.com
FundingUniverse connects qualified entrepreneurs with active VC's, angel investors and lending sources. In addition, FundingUniverse provides services to help entrepreneurs prepare for investment, such as helping them create compelling business plans and pitches, advising them on strategic business direction, and preparing them for investor scrutiny.
 
Go4Funding.com
http://go4funding.com
Go4Funding.com is a platform to bring entrepreneurs, business owners and investors (angel investors and venture capitalists) closer together. The site is strictly intended for existing business owners and entrepreneurs to post their capital needs. Investors can browse through various investment opportunities as well.
 
Go BIG Network
http://www.gobignetwork.com
The Go BIG Network allows professionals to connect with small businesses, entrepreneurs, investors, customers, vendors, employees and advisors. The Web site is like a "virtual rolodex" that people like yourself can use at any time to connect with people that can help your business.
 
RaiseCapital.com

http://www.raisecapital.com
RaiseCapital.com is an online community, where entrepreneurs can display their business ideas and capital needs to investors. Whether your venture is a start-up or existing business, RaiseCapital.com is the perfect vehicle for entrepreneurs seeking capital. In addition, RaiseCapital.com offers premium services such as showcase, feature and highlighted posts.
 
StartupAddict.com
http://www.startupaddict.com
Join an environment of go-getters, trend-setters, movers and shakers where extraordinary people congregate to network, gain business mojo and garner resources for their startups. If your entrepreneurial spirit drives you then Dream Big and Be Great at StartupAddict.com.
 
Vator.tv
http://www.vator.tv
Vator.tv is a catalyst for innovation. It is a professional network and marketplace for ideas and businesses. Anyone, across all industries, at any stage, can share ideas, products, services and businesses with the rest of the world, mainly through video. People use Vator.tv to pitch their ideas, businesses, skillsets or needs, such as capital, partner or staffing requirements. Hence, the tagline, "What's your pitch?" Through these pitches, people on Vator.tv can network, exchange knowledge and collaborate with other people who can help those ideas get to the next level. People use Vator.tv to get their ideas or needs discovered or to find, discover and connect with others in networks of interest.

How to Fund a Startup

How to Fund a Startup
by Paul Graham | November 2005

Venture funding works like gears. A typical startup goes through several rounds of funding, and at each round you want to take just enough money to reach the speed where you can shift into the next gear.  Few startups get it quite right. Many are underfunded. A few are overfunded, which is like trying to start driving in third gear... [Go to the article.]

Paul Graham is an essayist, programmer, and programming language designer. In 1995 he developed with Robert Morris the first web-based application, Viaweb, which was acquired by Yahoo in 1998. In 2002 he described a simple statistical spam filter that inspired a new generation of filters. He's currently working on a new programming language called Arc, a new book on startups, and is one of the partners in Y Combinator. Paul is the author of On Lisp (Prentice Hall, 1993), ANSI Common Lisp (Prentice Hall, 1995), and Hackers & Painters (O'Reilly, 2004). He has an AB from Cornell and a PhD in Computer Science from Harvard, and studied painting at RISD and the Accademia di Belle Arti in Florence. Paulgraham.com got 10.6 million page views in 2008.