Do you need VENTURE money to get BIG online?

[$5 Submissions]

I used to work for a venture capital firm. So here's a question: do you think your websites needs a LOT OF MONEY to get BIG online?

Put it another way, does pouring a lot of $$$ onto a project's promo necessarily mean that project will be successful?

 

[JDA]

You have any interesting VC stories?

And yeah, I think VC funding can be pretty helpful in the right situations, especially if a site grows too quickly (Digg, YouTube are both good examples of that).

 

[$5 Submissions]

You have any interesting VC stories?

And yeah, I think VC funding can be pretty helpful in the right situations, especially if a site grows too quickly (Digg, YouTube are both good examples of that).

I got quite a few. What kind of stories would you like?

 

[Charlie]

In the right situations VC is probably essential, ecommerce ventures where large stock is involved or lots of staff and equiment are required upfront.

 

[$5 Submissions]

In the right situations VC is probably essential, ecommerce ventures where large stock is involved or lots of staff and equiment are required upfront.

Yes. But your IDEA must be compelling PLUS you must have a cogent and relatively well-tested implementation. Core technology helps a lot as well.

 

[JDA]

I got quite a few. What kind of stories would you like?

Companies that blew all their money on coke and hookers, tales of excess, that sort of thing. But anything interesting really.

 

[$5 Submissions]

Companies that blew all their money on coke and hookers, tales of excess, that sort of thing. But anything interesting really.

Most of the companies we backed fizzled out after 1.5 years. They didn't spend it on booze, coke, and whores. It's not as sexy or gritty as that. Most blew their cash because content and labor costs ground them down. Without a VIABLE revenue stream and BEFORE the whole Adsense PPCmania, all of them died One good thing came out of it though, I realized the need for cheap outsourced labor. Hence, I came up with Webmasterlabor.Com 3 years later.

 

[Charlie]

Companies that blew all their money on coke and hookers, tales of excess, that sort of thing. But anything interesting really.

tales of coke and hookers, great advertisment for VC

 

[Rob_TID]

I kind of disagree here. Online companies are unique in that they don't need any venture capital at all.

I have worked for several multi-million dollar online companies that never borrowed a cent to start up and never received venture capital either. Now their respective owners are laughing all the way to the bank.

 

[rex_b]

I don't think VCs like spending money on just marketing, because what happens when you stop marketing?

 

[a.titus1]

I dont think its needed at all. It can maybe speed up the process, but I bet theres just as good a chance itll screw up what could have been a big success.

Ive heard a lot of companies that give money also want to install some of their own people at an executive level. This can either be good or bad, so its kind of a crapshoot no matter what.

 

[rex_b]

VCs more than likely want a big equity stake as well.

 

[Doug]

I dont think its needed at all. It can maybe speed up the process, but I bet theres just as good a chance itll screw up what could have been a big success.

Ive heard a lot of companies that give money also want to install some of their own people at an executive level. This can either be good or bad, so its kind of a crapshoot no matter what.

VC Can jump start things in the fast lane, this is Key sure there are some added problems, but apples to oranges it can be a very good way to move forward.

 

[J-Tag]

You sure can. Make a good blogger blog, throw up some AdSense.

It's like the story of that guy that started by begging for cigarettes, and someone gave him the whole pack, he sold them individually, and kept buying and selling smartly and wound up as a millionare.

 

[Jon]

I'm actually seeking private investors for one of my newest projects. I would never seek VC or AI funding though.

 

[$5 Submissions]

I'm actually seeking private investors for one of my newest projects. I would never seek VC or AI funding though.

Good move on the VC avoidance. Because of the HUGE equity stakes they require, it's best to approach them once the project is large enough and moving fast enough towards an equity market or acquisitions-related exit strategy.