CLR Reprint - Dot.Com Millionaire

You have a great idea, you have a web site, and you have mortgaged your home and first born child. Now what do you do? How do you become the next Amazon.Com, AOL or Bill Gates? The road to riches is not always an easy one. Nor, in these changing times, is the road the same one outlined in Business 101. The following is part two of a three part series designed as an outline to assist and guide you through Dot.Com mania and hype. Last month we covered Angel Financing in this issue we focus on Venture Capital Funding, and next month we will close with The IPO or Initial Public Offering.

Now you have made it past the first hurdle, through Angel Financing, friends, family and maxing out your credit you have raised the initial $500,000 in start-up funding needed to establish your dream. You now must double check your business plan to insure you have your ducks all lined up in a row. You have your prototype in place, an experienced board of directors, and the money to cover staff and operating expenses for one year.

After an all night meeting with your staff and advisors you are now ready for your first meeting with a venture capital company but the question arises "How Do You Find a Venture Capital Company?" Hopefully in the first stage of Angel Financing you made a good enough impression that even though they told you no, they also asked you to come back when you had met certain criteria. Your challenge now is to work you way back down that list and ask them if they would recommend or refer you to some VC companies that they thought might be interested in your field of endeavor. VC companies come in all shapes and forms, some are focused on specific industries, others invest in geographical areas, and some are just straight out stock speculators. There are books in the library which list VC companies and the Internet is the ultimate research site. Do not confine your search to only one area or industry but throw as wide a net as possible, for you will get a lot of no's before you get one or two yeses.

Here are a few pointers to keep in mind when you make your presentations during this level of the fundraising process;

Remember to trust your Business Plan, the counsel of your advisors, and experience you've gained in the industry.

The following is a list of some online funding sources to get you started in your search for funding.

A listing service for direct public offerings (DPO's) and private placement. Direct Stock Market provides an online community environment in which investors can discuss offerings, but they must do their own due diligence.

A process by which WR Hambrect&Co. an investment banking firm, takes companies public by auctioning shares over the Internet. OpenIPO uses a "Dutch auction" on the Web to price and allocate all shares of an IPO; the procedure attempts to put all bidders on equal footing, which discourages investors from flipping the stock for a quick profit

A "Placement Agent" for established private companies seeking growth capital of $3 to $15 million dollars. Several thousand accredited investors, including angel groups and some venture capitalists. CEO's make studio appearances and take questions from investors via E-mail or phone

An online investment banker that's become a distribution channel for old-line investment bankers. Not an investment banker for small companies that wouldn't go public otherwise.

A matchmaker for company founders and sophisticated angel investors, select and corporate venture capitalists. Entrepreneurs receive help with creating a management team, marketing strategy and help with pitching their companies to investors.

A Small Business Administration (SBA) sponsored listing service for companies that have completed the paperwork for a streamlined Direct Public Offering (DPO). ACE-Net was designed to make small offerings easier by lowering the legal barriers.

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This web site contains "Trademarks" and "Copyrighted" material licensed to other entities and cannot be reproduced, altered, or used in any form without prior written permission. Please read our Terms Of Use for compliance information.