Question

In your own words describe how do you feel about April's post below;

At this stage of my venture in fayVen, I’m not certain that I am ready for either an angel investor or a venture capitalist (VC). Currently, I need about $10,000 – 20,000 to get fayVen to the minimum viable product (MVP) stage. I wouldn’t want to waste an opportunity, if I had an audience of angel investors and or venture capitalists, with such a small amount needed. I do believe that once the market research is complete, my MVP is up and running, and I have a large database of clients that are ready to use fayVen routinely, that an angel investor is more likely to invest in my company than a venture capitalist. Since the company is a new service that hasn’t been done the way I plan to do it, it would definitely be too risky for a VC. Angel investors are more likely to invest in ideas and the people behind them and don’t have to report to anyone about the reasons why they chose to invest in your/your company.

I believe that with the passion I have about fayVen, the potential it has to be a national company, and the profit margins that can be shown, an angel investor would more likely want to trade capital for equity with me. I would also barter that in lieu of capital only, they would provide me with some level of mentorship, business connections, have them sit on the board of advisors, and possibly use their financial planner or accountant in order to ensure that fayVen gets off to a good start.

When fayVen gets to be much larger, towards the IPO stage, VCs may be more interested in the company. Having a longer track record and more business tent poles in place will make it easier for VCs to decide whether investing is right for their Limited Partners and their portfolios.

At this point, my best options for capital and funding are to invest my own money, ask family, friends, and business acquaintances. If I could hit the lottery, that would be awesome too… but until then, I will keep plugging away at this business plan!

Answer 1

I personally feel that April has a clear vision of how to make fayVen a success. The business plan has clarity about the investment amount and the shareholders in terms of angel investors and venture capitalists (VC). An exhaustive market research and its results have enabled Angel to decide on the MVP stage for fayVen. There are also differences provided between Angel investors and VCs. The passion about fayVen is that it has the potential to be transformed into a national company. She also describes how her options for capital and funding are to invest her own money, ask family, friends, and business acquaintances. If all of these strategies become a great hit, then it would be a great success for the company. To conclude, it is a clear plan of action for the business.