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Q: Loan question ( No Answer,   4 Comments )
Question  
Subject: Loan question
Category: Business and Money
Asked by: shoaib-ga
List Price: $2.00
Posted: 24 Feb 2003 09:15 PST
Expires: 26 Mar 2003 09:15 PST
Question ID: 166413
If Entrepreneur has "exceptional business plan" but he has no history
of that  business then in this situation I want to know that can he
qualify for 'venture capital loan' for his business?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Loan question
From: martinjay-ga on 24 Feb 2003 10:19 PST
 
What is your question - 'What are his chances to get VC
funding?'  The answer is 'it depends' - the real judge
of the quality of the business plan is in the eye of
the person with the cash.  Talk to a couple of VCs,
find out what they think.  If it is that good, and the
Management Team is strong, even from another
industry, then maybe it has a chance.  These days
VC is so hard to get that it doesn't usually matter.
Good luck.
Subject: Re: Loan question
From: martinjay-ga on 24 Feb 2003 18:28 PST
 
Also, most Venture Capital firms do not give
'loans' without being an equity investor.
VC funding is not like a loan where a bank
will have credit scoring models and history
with them, but an investment option where
private investors, or representatives of 
private or other investors, buy an equity
stake in a business.  When approaching these
people it is best to prepare well beforehand,
they are very sophisticated.  They are the best
judges of business plans, because they have
the money - my, your and everyone else's opinions
of business plans is somewhat irrelevant.  Good luck.
Subject: Mark Victor Hansen and Jack Canfield did a little program called...
From: sergeantshultz-ga on 24 Feb 2003 20:48 PST
 
The Aladdin Factor; How to Ask For and Get Whatever You Want in Every
Area of Your Life. The program tells of a young man that had an idea
for a business; he too needed investors in his idea to make it work.
Know bank would touch it, venture capital firms weren't interested, so
what was he to do?

The young man started asking himself questions; he lived in New York
City, where do the people that would have money be? Where would they
live? How could he contact them? The young man figured most of them
actually traveled the subway from the posh areas, so he started riding
the subways. Then he would approach different individuals; his first
question, "Are you a qualified investor?" If they weren't he would
thank them and move on to the next person. The guy met enough people
in three days, that thought his plan had enough merit to invest in it,
to totally fund the start-up. As they tell it he went on to cteate a
multi-million dollar company.

Worth a shot.

As usual... Sgt. Shultz knows.... Nuthing!
Subject: Re: Loan question
From: martinjay-ga on 25 Feb 2003 18:16 PST
 
Sarge, even pre-bubble that is hard to believe.
Curious if that is true.  See the movie Autofocus
also, has great Colonel Hogan stuff in it!

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