View Full Version : Investors
xerocity.com 05-14-2002, 05:18 PM Does anyone know of any good places to find investors in hosting companies?
The reason that I am asking is we are seeking an investor and we have been unable to find one that is willing to invest in an online company. Most are afraid to because of the "dot com bubble burst".
I know many of you here started your hosting companies with your own funds, but at this time that is not possible for us. We have done everything; we just need funding for advertising and some other minor things.
If it makes any difference, we do not want to go public in the future and would like to remain a privately held (Limited Liability) company. I guess we are basically seeking a financial partner.
Thanks,
Joel Strellner
Tranz 05-14-2002, 05:24 PM What to you have as far as technology that would set you apart from the other 10,000 hosts?
See, what the problem is is that your deal isnt attractive enough to lure anybody.
If I was to invest enough in you then I might want you to go public so I can cash out and go on my way.
I came up with a business concept and six weeks later had $52m in funding for the start-up. Then 9-11 happened, the primary investor got shaky and said he wanted to wait.
For his $52m I was going to HAVE to give up 61% of the corp. You have to think if your ready to make that trade. If not then you have to go at it on your own.
I have since found someone willing to go in for $38m and only wants 52%.
kress 05-14-2002, 05:30 PM hmmm you want to invest huh?
I reccomend for your own self to invest in OPTIONS! you can make a lot of money from that type of investing! You can make %100 - %500 in profit if you had my brain! I've been researching all types of stocks and found about 10 that are really profitable, becuase they are very votile which is great for %100-%500 in profits within just 2 weeks!
Although I've never really invested in it I did use paper money and it worked out great, and also i'm only 17 :( so I cant invest yet!
xerocity.com 05-14-2002, 05:33 PM We have many services and features that we will be adding in the next few months that will seperate us from all of the other hosts. I will not post them here due to the amount of other hosts here (which might atempt to take the ideas).
Two of the services/features that we will be adding are in their final testing stage and we will probably release them as soon as we aquire funding.
I am willing to give away a portion of the business to aquire the funding; actually that is also written in our business plan.
If it meant recieving the kind of funding that you are talking about I would probably be willing to as long as there were certain goals that had to be met before going public.
sbrad 05-14-2002, 08:05 PM You can make %100 - %500 in profit if you had my brain!
Apparently your brain has expanded so much it kept you from understanding the basic concept of this person's request.
Originally posted by sbrad
Apparently your brain has expanded so much it kept you from understanding the basic concept of this person's request.
LOL!! :D
iamdave 05-14-2002, 10:30 PM Originally posted by Tranz
What to you have as far as technology that would set you apart from the other 10,000 hosts?
See, what the problem is is that your deal isnt attractive enough to lure anybody.
If I was to invest enough in you then I might want you to go public so I can cash out and go on my way.
I came up with a business concept and six weeks later had $52m in funding for the start-up. Then 9-11 happened, the primary investor got shaky and said he wanted to wait.
For his $52m I was going to HAVE to give up 61% of the corp. You have to think if your ready to make that trade. If not then you have to go at it on your own.
I have since found someone willing to go in for $38m and only wants 52%. I want $38 million.
xerocity.com 05-14-2002, 11:06 PM Tranz,
How and where did you find your investors? Were they family, friends or a previously unknown party (before you negotioted with them)? Were they introduced to you or did you come accross them and approach them?
What type of business do you operate? Are both of the investors you referenced still by any chance looking for other companies to invest in?
Sorry for all the questions; I have just been thinking about your posts all day.
kress 05-15-2002, 01:11 AM Originally posted by sbrad
Apparently your brain has expanded so much it kept you from understanding the basic concept of this person's request.
Yea lol at me:D ... but I wasn't interested about this person request, I just wanted to mentioned my thoughts about stock investing thats all!
Walter 05-15-2002, 06:40 AM Joel, how much do you need? The number wills make a big difference...
xerocity.com 05-15-2002, 10:25 AM We are currently seeking a minimum of $10,000.00 US. Of course, the more the better. :D
usalinked 05-15-2002, 10:58 AM 10 grand is not enough to get an investor involved. If you can't front that type of my now your in for a hard game in the webhosting business.
xerocity.com 05-15-2002, 11:02 AM usalinked,
10 grand is the minimum amount that I would be willing to accept. Of course, if someone wanted to invest a couple million I would not stop them.
Tranz 05-15-2002, 08:10 PM Xerocity,
I happen to luck out on finding the investment trail. It's not easy and I am still trying to pull the whole deal together.
Both of the investors look at deals that stand to produce 100's of millions in the long run.
xerocity.com 05-16-2002, 02:16 PM Tranz,
Any tips you could offer to assist me in getting an investor?
Thanks.
ReliableServers 05-16-2002, 02:45 PM 10grand investment...Go to your bank and pull a loan
xerocity.com 05-16-2002, 02:53 PM Originally posted by Dilhole
10grand investment...Go to your bank and pull a loan
Tried that... because the bank thinks that we are a startup and an online company they denied the request for a loan.
Actually when we went to get a loan, once we mentioned that we were an online company the lady said that it was going to be very hard to get the loan approved because we were an online based company and asked us if we still wanted to try.
DanielP 05-16-2002, 03:00 PM You can always take out a loan against your house if you own one, and you can also take a loan out against your personal credit history. If your only looking for 10,000 then that is 2 small for any investor to get involved with, because if your numbers are based off of a minimum of a 10,000 investment the return can't be that terribly big (no offence just basing it off rough estimates)
xerocity.com 05-16-2002, 03:15 PM The $10,000 is only needed for the advertising of our business. We have already purchased everthing else that we needed... Well almost everything. But like I said above the money would be for an advertising budget.
bigkirby 05-16-2002, 06:42 PM If all you need is 10k, you might want to checkout the SBA's Microloans section:
http://www.sba.gov/financing/
beley 05-16-2002, 07:03 PM The SBA won't give a loan that's going to be used for advertising... I once got a $50,000 SBA loan but it was stipulated that it had to be used for equipment, inventory, land, etc. - something that could be used as collateral.
Once you spent the money on advertising it would be gone, and there would be nothing to show for it. Therefore, if you defaulted the bank and SBA would have no way to get their money back.
xerocity.com 05-16-2002, 07:08 PM I could then, in theory, allocate some of our money towards advertsing and use an SBA loan to pay for the physical items....
mmmmm... I am going to have to start playing with numbers again I guess.
Would this be legal?
beley 05-16-2002, 07:26 PM Since you put the items up as collateral on the loan... servers for instance... they can reposess the items if you default.
However, you have to own the collateral and not have any other leins or loans on them.
But yes, as long as you put physical items as collateral they will be fine.
Of course, you could use your house or car as collateral if you have enough ownership (have paid enough) and can borrow against it. I would really not reccommend it though... because you don't want to lose the roof over your head if your business goes under!
Originally posted by iamdave
I want $38 million.
Dont we all ! :) Im actually looking too but for a much smaller amount, $250k , but damn $38 million would be awesome. Good luck with your quest .
Alan - Vox 05-21-2002, 05:22 PM I dont, i never want to accept investment.
Sometimes its need when youve got big plans and want to get them off ground with a bang. Where would the US be today without people willing to invest in it.
ADEhost 05-23-2002, 02:25 PM Originally posted by SplashHost.com
I dont, i never want to accept investment.
one of the fastest way's to increase your growth is the old but still valid principle OPM.
OPM ( other Peoples money ) gives you leverage. I myself have no problems with investors but I prefer to time those things myself.
good luck
Mike
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