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Ask HN: Should I get investment?

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Ask HN: Should I get investment?

#1

Post by jacksoncarter »

I tend to be anti-VC because it seems so many fail. At this point though, I realize that I need additional capital. It's simply too much for me to do it all.

I've been working on this idea for a few years now. The product is quite good. It does amazing things for people. I do have paying customers. Everyone who knows about the product thinks it's absolutely amazing.

Here's the problem. the only way I'd be able to get investment is to knock on doors. There is a little projector in my brain showing me a movie of myself walking down Sandhill Road going into offices, asking if I can talk to someone. That's where the movie ends. I don't know if the receptionist would say, "Sorry, there's no one available right now. Can I take your..."

The other option would be, "Sure, let me see if Mr. X is available. Mr. X, I have someone here who'd like just a few minutes of your time. Okay, he'll be right out."

So I show Mr. X what I have and, "That's pretty good. What do you want to do with our money?"

Sometimes I think I just gotta do it. I am stopped by fear of wasting my time. I'm stopped by fear of rejection. I'm stopped by thoughts of my own grandiosity and knowledge that my personal bias -- of course -- makes me think this product is great.

I need some commercialization. I need some refinement, but I've got 3 years of R&D under my belt. It's one of the best products in its space. Customers who can understand it love it.

Sometimes I feel like I owe it to the world to help this thing get out there. With about $250,000 I could really take it to new heights. Refine the UI. Market it. Package it. How do I find that money? How do I connect with the people who would understand what I'm doing here?

Can I go knock on doors? I will if it wouldn't be a waste of time...

EDIT: Might as well let you know what it is. Here's a link to a new version of the site we'll launch soon: http://design.qrimp.com

Re: Ask HN: Should I get investment?

#4

Post by michael_dorfman »

If you've got a product with paying customers, and a business plan that shows how an additional $250K in capital will bring you X% growth over Y years, you're definitely in a position to pitch to VC/Angels.

So, make some telephone calls, and set up some appointments with VC/Angels in your local area. Try to avoid the instinct to deliver the pitch over the phone; just paint the picture in broad strokes, and try to get the meeting.

Seriously: what's the problem?

Re: Ask HN: Should I get investment?

#5

Post by byoung2 »

michael_dorfman wrote: post #4

If you've got a product with paying customers, and a business plan that shows how an additional $250K in capital will bring you X% growth over Y years, you're definitely in a position to pitch to VC/Angels. So, make some telephone calls, and set up some appointments with VC/Angels in your local area. Try to avoid the instinct to deliver the pitch over the phone; just paint the picture in broad strokes, and try to get…

Seriously: what's the problem?

Like he said, fear of rejection. It's the same thing that stops guys from asking girls out. The reality is that the worst thing that can possibly happen is that you get a big fat "no" but your brain makes it out to be much worse. Like Hamlet says: "there is nothing either good or bad, but thinking makes it so."

Re: Ask HN: Should I get investment?

#6

Post by shafqat »

If you tell us what the product is, there's a much higher likelihood of getting help. In fact, there are people here who might invest. FWIW, I can certainly introduce you to angels/VCs who will take a meeting, but I'd have to know more about your business first. So bottom line: share!

Re: Ask HN: Should I get investment?

#7

Post by [deleted] »

michael_dorfman wrote: post #4

If you've got a product with paying customers, and a business plan that shows how an additional $250K in capital will bring you X% growth over Y years, you're definitely in a position to pitch to VC/Angels. So, make some telephone calls, and set up some appointments with VC/Angels in your local area. Try to avoid the instinct to deliver the pitch over the phone; just paint the picture in broad strokes, and try to get…

[deleted]

Re: Ask HN: Should I get investment?

#8

Post by SemanticFog »

You should seriously think about finding some advisors before you raise money. The time and expense is well worth the effort.

Set up a board of advisors for your company, and try to get 1-3 successful entrepreneurs in your field (or related fields) to serve on it. Give them a bit of equity. Talk to them individually, but also try to get them all in one room at least once.

You can reach potential advisors through networking events, through service providers like lawyers, and by just emailing them (repeatedly if necessary). You might want to start by hiring a lawyer or accountant who is connected in the community, and asking for help with intros.

Among other things, your board of advisors will help you understand the type of investor that makes sense for you. If you're trying to raise $250K to ramp a business up to a few million/yr, then odds are no one on Sand Hill Rd will be interested. But that doesn't mean it's a bad business -- you just have to look elsewhere for investment.

Re: Ask HN: Should I get investment?

#9

Post by jacksoncarter »

davidw wrote: post #3

Now I'm curious what it is.

I added a link to the above, but here it is for you: http://design.qrimp.com

It is a cloud platform that enables application development using only a browser. No IDE's to download, databases to configure, servers to manage. Upload your data and Qrimp builds a relational model to support it and let's you customize reports, forms, build pages. Use AJAX to customize the interface of your app. etc.

Imagine MS Access for the web.

It seems more and more customers are looking to move their databases to the web and this platform helps make that happen easier than coding them from scratch with .net, ruby, even django and frameworks like that to some extent, because it's all on the web.

Of course there are lots of competitors: Salesforce, Caspio, Quickbase, even excel really -- the status quo. But the market is growing and will continue to grow.

Re: Ask HN: Should I get investment?

#10

Post by dmillar »

To start any business you have to take risk. You've gotten this far with your idea, the worst that can happen is they say no. But, now you've got experience pitching to VCs.

Understand that the fear of rejection is just that: fear. It's part of the risk. Sometimes, rejection can be a damn good motivator.

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