| Startup & Venture Capital - Are ideas worth anything?

Startup & Venture Capital - Are ideas worth anything?

zerohourx asked:


I’m considering a new internet startup venture and have some questions about VC funding.

At the moment I just have a 50 page document outlining the idea, marketing strategy, competition, and such (it could be considered a very “informal”, “non-technical” business plan) but not one line of code for the new service. As outlined in the document, the service does make use of an approach I’ve submitted a Provisional Patent for.

My question is, can one successfully pitch an idea to VCs in order to get funding to begin making the company? Or is it a REQUIREMENT to have a “traditional” business plan, a competent team, and the existing web service with actual end-users using it. Perhaps a mockup demo could suffice?

If the idea-no-code approach, mentioned above, is possible, what kind of % share would the creator be entitled to? Sure I brought the idea but in all fareness, the VC had to flip the bill for all the developers and time to make the site from scratch.

Thanks!
I’ve heard many horror stories of going the VC route but I’m at a point where I’m about to explode with frustration unless I get things rolling, even if that means less control.

Perhaps there are startup support services out there which make it easier to build the company from scratch rather than the proclaimed painful approach to VC? I live in Ontario Canada but like so many my eyes are set on Silicon Valley only because that seems to be where all the action and VCs are. I can’t imagine it mattering where I start up the company considering it is internet based.

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One Response to “Startup & Venture Capital - Are ideas worth anything?”

  1. Alias_Smith_and_Jones on June 1st, 2009 5:21 pm

    Get hold of a book called “The Silicon Valley Way” - it addresses financiing in non-technical terms - might even be too broad but gives you some general benchmarks for the sorts of presentations and discussions you want to be involved with.

    To answer your question, having a thorough biz plan is terrific - but you don’t have to have it to get VC funding. Some ideas, even now in post-bubble, can still get funding with a 3-page PowerPoint. I was chatting with someone in a VC (East Coast) a week or two ago, and he mentioned this very point to me.

    Good luck!

    Added 3/1/06: I live in New England on U.S. side and happen to be looking for a business situation. My Yahoo address before the @ is itsflotsam - if you care to drop a note. That’s my spamcatcher address but I do look at it.