Just For The Fund Of It
Where can you turn if you can't get money from family and friends, your local bank or a business incubator? Here's where to go.
By Paul DeCeglie
Does it seem like every Tom, Dick and Harriet is effortlessly
attracting start-up capital while you're struggling to fund
your business? "It's a sad reality," says Gustavo G.
Dolfino, chairman and CEO of venture capital infomediary P.A.
Worthington-Cabott LLP in New York City, but "some of the best
ideas never get financed." But don't despair if family and
friends can't fill your needs, your bank won't come to your
assistance and you don't have access to a business incubator.
Others are waiting to help you achieve your goals.
Dolfino, for example, can help "by hooking up
entrepreneurial talent with the right funders— who can take
it to the next level." He'll put your business plan in the
hands of five potential investors who are right for you.
Worthington-Cabott submits business plans to databases with access
to private equity funds, onestop shops, venture capital funds,
angels, endowments and foundations. These are further broken down
by industry and geographic preference, type of investment
preference, investment portfolio and stage of investment. The
service comes at a price.
Dolfino says his firm charges clients $200 to submit business
plans to the first five prospects. For an additional $100 a pop,
they'll refer you to attorneys, accountants and professionals
who will attend the initial presentation.
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Similarly, Vcapital.com determines the appropriate VCs for your
opportunity through its matching process and guides your project,
from drafting a brief proposal to setting up a meeting with
potential investors. The site enables you to prepare an iDeal
Summary (a synopsis of your business plan), while staffers provide
feedback on your complete business plan, offer advice and refer
your opportunity to venture capital firms. Vcapital.com, established by venture
capitalists, charges a one-time fee of $200.
Were you hoping for something less costly? How about free?
BusinessFinance.com can do that for you. Designed to assist
entrepreneurs in locating funding sources, the site directs you to
venture capital, investment funds, equipment leasing or financing
and even helps secure a loan or government funds. The site features
a capital search engine to find funding sources that specialize in
your industry, size, stage and amount; provides a free workbook
teaching you how to prepare and present a funding request;
discusses government programs; and suggests other resources and
experts. There is no charge for the service, but you've got to
do most of the work yourself.
Paul DeCeglie (MrWritePDC@aol.com) is a former
staff reporter for Journal of Commerce and American
Banker.