

Do these guys really help? (helping to raise capital) - tx

Here at Pikluk (<a href="http://pikluk.com" rel="nofollow">http://pikluk.com</a>) We are in the process of finalizing our business plan and trying to get funded.<p>I was wondering if any of you guys had any experience dealing with sites like <a href="http://www.fundingpost.com" rel="nofollow">http://www.fundingpost.com</a> and <a href="http://www.gobignetwork.com" rel="nofollow">http://www.gobignetwork.com</a><p>They all want you to pay to submit a  "company profile", not much - hundreds (at least not thousands) of dollars.<p>But I am wondering - are they for real? I have never heard of any company that got funded this way.

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pg
I have never heard of a successful startup that got funded this way either.

VCs tend to get deals through referrals from people they know, like angels,
lawyers, professors, and other founders.

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jgrahamc
It's almost a prerequisite to getting funding that you are smart enough to
figure out how to get a referral into a VC firm.

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menloparkbum
I doubt it. go big network is 90% bullshit.

However, in Silicon Valley, there are a number of guys who are well connected
in the venture community and can help you find funding. We had such a guy help
us out for a year and I'm pretty sure we wouldn't have found our great funding
deal without his help.

~~~
tx
Well... lucky you, SValley residents. :-) We're based in Austin, TX and so far
has not developed any connections with valley people.

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sarosh
An asymmetric attack you may wish to consider is to talk to the larger law
firms who represent VC/PE firms. Fulbright & Jaworski L.L.P. on Congress
(downtown Austin) is very well connected and could point you in the right
direction. Alternatively, go to a <http://www.bootstrapaustin.org/> event and
see what other entrepreneurs suggest.

Austin is an amazing city.

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tx
Woow. Yet another local resource I had no clue about. Thanks a lot.

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sarosh
There are lots of 'niche' resources in Austin and you have to do a lot of
legwork to get to them. Additionally, if you (or any of your founders) are
alumni of the University of Texas, the networking events at the MBA school are
valuable.

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sama
The middleman approach to funding doesn't appear to work too well--none of the
successful companies I know went that route, but many of the trainwrecks did.
It's probably not impossible, though.

You would do well to remember that investors need you much more than you need
them. If you've got a good idea, market, and team, raising money won't be your
problem. Lawyers, professors, other companies, even networking events--it's a
very solvable problem.

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mikesabat
Call them and ask for references. Please be sure to come back and tell us what
you found out :)

I don't know anyone that has used them, but I do read Wil's blog often.

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skmurphy
"But I am wondering - are they for real?" They will really take your money.

If you've exhausted all of your social capital and none of your friends, folks
you have prior shared success with (e.g old bosess, co-workers, team members,
customers, suppliers), family/relatives, and current advisors (e.g. lawyer,
CPA, banker, others) are willing to help you then you can pay these guys to
broadcast your business plan or profile.

You might ask them for three references who actually raised money as their
testimonials seem to revolve around arranging meetings where founders can
touch the hem of a VC's cloak--but no money seems to have changed hands.

Alternatively you might reconsider your business model, as a parent I would be
willing to pay pikluk so when I see "The PikLuk Service is FREE and it
provides a safe Internet experience for your children." I wonder how you are
going to make money in a way that doesn't conflict with your primary brand
promise.

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ivankirigin
Try to meet potential funders in person. Or try to meet people that will
recommend you to a funder. That is the way (I'm told) that the vast majority
of deals happen. It's all about networking, which is best accomplished in
person.

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ALee
Agree with ivan here. We received our first VC introduction from a cold e-mail
we gave to another entrepreneur. She's been instrumental in our development
and is a great person to have on board.

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rms
I expected you guys to get into YC... maybe next time. If I had a bunch of
money I would fund you.

