Success in getting VC/private investor money?

[Bobby Stainless]

Don't hate. It's bad for your health.

[Danno]

please, just stop. both of you. there's no need to cunt up other threads with whatever stupid shit you choose to argue about.

[Bunion 2020]

^^^ X3

[Bobby Stainless]

Not my fault tbssux is a hater.

DD mentioned me as a financier. I responded with a rate.

OP knows where to find start up capital now. /thread

[tbssux]

Not my fault tbssux is a hater.

DD mentioned me as a financier. I responded with a rate.

OP knows where to find start up capital now. /thread

At 24.99% APR.

[stuckathuntermtn]

He just said he's not doing car washes. Which is good, since it's pretty dry here.

[ghosthop]

Stuck, did you not bother to read the thread? Because he is talking about car washes.

Also, there are more important water use issues to get upset about. Like >50% of Bozeman's available drinking water being used to keep lawns green all summer. Those same fucks want their cars clean too.

[TyWebb]

No VC will ever touch this.

I would be surprised if a bank ever touched this. Try SBA and also go talk to the "venture banks" in your region. Still, I think it is a very long shot with no liquid capital for down payment, mediocre credit and limited home equity.

Usually in this situation, the only option is to have a single high net worth angel investor, who specifically wants to back you. More specifically, it almost always have to be a single angel, who made their money in this exact industry and is now retired and likes your moxy. Sees himself in you etc..etc...

[skaredshtles]

And just make sure to always keep this in mind:

[GoldMember]

No VC will ever touch this.

I not only totally agree with this but I would encourage OP to never get involved with a VC in ANY business idea if avoidable. VC's will only look for what they hope might be a unicorn and only then if they can set up a deal that will allow them total takeover control if some quarterly metric isn't met. But I digress.... VC's won't touch anything that doesn't have protected intellectual property attached and then only if there's been shown to be a market and many other criteria that suits them.

I would be surprised if a bank ever touched this. Try SBA and also go talk to the "venture banks" in your region. Still, I think it is a very long shot with no liquid capital for down payment, mediocre credit and limited home equity.

Without SBA backing, I agree that a bank isn't a likely source. Again, I would direct the OP to the SBDC in Bozeman for some counsel and assistance in putting together a Business Model Canvas that can then lead to a plan. They will help with pro forma modeling and direction toward market research and lending sources.

Usually in this situation, the only option is to have a single high net worth angel investor, who specifically wants to back you. More specifically, it almost always have to be a single angel, who made their money in this exact industry and is now retired and likes your moxy. Sees himself in you etc..etc...

Friends and family to help in the startup funding followed by an SBA loan would be my suggestion. Private lending may be suited to this but it's like trying to find a needle in a haystack. Would be best to work with someone who has connections that could bring in the right players that may have an interest but, it's a long-shot.

What I would instead suggest is trying to partner with a company who has this kind of business in other locations and essentially operate as a sweat-equity partner to earn his way in. If you don't have money, you can always offer sweat as your contribution. Be the local operator of their brand and make it succeed but they have to fund the cap-ex portion of the business to get it off the ground.

[skaredshtles]

This discussion kinda begs the question:

What the FUCK is wrong with Venture Capitalists... as humans... in general? They sound like they might be a bunch of rich douchebags? Just looking to get richer? Just for the fuck of it?

Maybe it's the old "He with the most sq ft at the Yellowstone Club wins"?

[GoldMember]

You say Venture, I say Vulture.... tomato, tomahto....

[hatchgreenchile]

It's not all bad. We were bought by a small PE firm in 2015. They came in and upgraded equipment, software and added some quality staff. We grew from an $8m to $14m company in 24 months. Our two original owners are good guys, but they had maxed out the company at $8m. They just didn't have the knowledge or experience to really take it higher.

The techie VC firms look crazy, but they are chasing unicorns. They don't mind a low batting average because it only takes one product/service to hit it big and they look like geniuses. Blockchain, IoT, VR/AR and implantables get a ton of investment because they'll be the next big thing. A good read on the "scene" is Live, Work, Work, Work, Die.

[GoldMember]

BTW - No credible VC firms look at anything below about $3M investment and only businesses that have established a foothold and need the money to scale their company. Hence the need for an already established brand or other IP that's unique and protected. A car wash business ain't gonna cut it.

[GoldMember]

It's not all bad. We were bought by a small PE firm in 2015. They came in and upgraded equipment, software and added some quality staff. We grew from an $8m to $14m company in 24 months. Our two original owners are good guys, but they had maxed out the company at $8m. They just didn't have the knowledge or experience to really take it higher.

The techie VC firms look crazy, but they are chasing unicorns. They don't mind a low batting average because it only takes one product/service to hit it big and they look like geniuses. Blockchain, IoT, VR/AR and implantables get a ton of investment just because they'll be the next big thing. A good read on the "scene" is Live, Work, Work, Work, Die.

Your experience was with a private equity firm, not VC. There is a definite difference in investment philosophy. PE firms are much better for this kind of investment than VC but still carry the typical caveats of earn-outs for the seller and quarterly metric compliance or they will replace the management team. However, like the VC world, they come with different shapes and colors; some good, some not so much. The borrower/seller needs to do their homework and due diligence to make sure they're not being set up for failure.

[PNWbrit]

A car wash business ain't gonna cut it.

I can't imagine anyone getting excited about investing in the car wash business.. Unless it's something to do with reduced car ownership, car share fleets or self driving vehicles.

[Name Redacted]

I can't imagine anyone getting excited about investing in the car wash business..

Walter White made a ton of money in the car wash biz!

[TyWebb]

VC's are fine. I've worked with many of them. They fill a valuable hole in the startup financing ecosystem. They are just only appropriate for a very small percent of young companies.

If you have a tech company, with a unique product and $1M+ in recurring revenue and 50-100%+ annual growth rates, they are perfect. They put up risk capital when nobody else will and in exchange for that risk, they can be rewarded handsomely when a company is sold.

VC's are materially different today than 10 years ago. They are more entrepreneur friendly and the good ones have clean terms and invest at high valuations. There are more good VCs than good companies right now. They really do behave themselves these days. If they don't, the best companies won't work with them.

Again, they will never be right for a car wash, or any other business that does not match the above criteria. The simple consideration of such is a waste of time.

[Timberridge]

You need a sugar mama. Someone with emotional baggage, some freakiness, a large net worth and more interested in you than your idea. These are harder to find than sugar daddies, but if you persevere they're out there.

Google Lynn Tilton.

[GoldMember]

VC's are fine. I've worked with many of them. They fill a valuable hole in the startup financing ecosystem. They are just only appropriate for a very small percent of young companies.

If you have a tech company, with a unique product and $1M+ in recurring revenue and 50-100%+ annual growth rates, they are perfect. They put up risk capital when nobody else will and in exchange for that risk, they can be rewarded handsomely when a company is sold.

VC's are materially different today than 10 years ago. They are more entrepreneur friendly and the good ones have clean terms and invest at high valuations. There are more good VCs than good companies right now. They really do behave themselves these days. If they don't, the best companies won't work with them.

Again, they will never be right for a car wash, or any other business that does not match the above criteria. The simple consideration of such is a waste of time.

Yeah, I know I'm being harsh on VC's.... probably unfairly. But you bring up all the points about why a VC isn't what OP needs nor qualifies for. More my point is to be sure to do his own due diligence on anyone who might be an investor choice. They come in all stripes.

He needs a bank loan (SBA backed) or an angel of some sort. Or a sugar momma with baggage as noted by Timberridge.

[bw_wp_hedonism]

Will beat a dead horse by agreeing with the comments about institutional funding (VC, PE) being highly unlikely. Coming out of the space myself, I’ve perhaps got a more nuanced view of their qualities and flaws.

Angel investor and family office types might be more open to it. Even then, probably a long shot.

One angle that might attract more investor attention would be a larger scale operation (multiple locations). You would have to have the concept well advanced (target locations/acquisitions with willing sellers), though. It sounds like your background could be conducive to this approach as well. I don’t know the area though, so I’m out of my depth on feasibility of approach.

[fatnslow]

You need a sugar mama. Someone with emotional baggage, some freakiness, a large net worth and more interested in you than your idea. These are harder to find than sugar daddies, but if you persevere they're out there.

Google Lynn Tilton.

Hmm, maybe capitalizing on this idea is the real business here. Matchmaker/pimp get's a 15-20 % finders fee.

[Foggy_Goggles]

Phish, I'd probably try to talk you out of it for multiple reasons. Just because you are good at something doesn't mean it is the path to success and happiness. Didn't you use to complain about working all the time in the car wash business? What makes you think that wouldn't happen all over again? For better or worse, one of the keys to a successful small business in the owner working there ass off.

Aren't their unlimited trade jobs that pay $25+ where you live? If I were you I'd think about putting in my time to be a master electrician, plumber, linesman, welder, shit plant operator etc. Funny thing about these mountain towns is everyone bitches about no money and no opportunity. Those that keep there head down and tough it out wake up one day with a mortgage they can afford, a good paying job, plenty of vacation and a great place to live. The others want to know the secret. There is no secret. Work hard. Leave frugally. Claw your way up the ladder.

[Bunion 2020]

Phish, I'd probably try to talk you out of it for multiple reasons. Just because you are good at something doesn't mean it is the path to success and happiness. Didn't you use to complain about working all the time in the car wash business? What makes you think that wouldn't happen all over again? For better or worse, one of the keys to a successful small business in the owner working there ass off.

Aren't their unlimited trade jobs that pay $25+ where you live? If I were you I'd think about putting in my time to be a master electrician, plumber, linesman, welder, shit plant operator etc. Funny thing about these mountain towns is everyone bitches about no money and no opportunity. Those that keep there head down and tough it out wake up one day with a mortgage they can afford, a good paying job, plenty of vacation and a great place to live. The others want to know the secret. There is no secret. Work hard. Leave frugally. Claw your way up the ladder.

A lot of truth in that one. Especially the Shit Plant operator thing.

Friend of mine started at a private Sewer/Water District and he like the work well enough, people leave him the fuck alone, he makes decent $$$ and has pretty decent benefits.

And did I mention, as long as the toilets flush people leave him the fuck alone. Priceless.

[Foggy_Goggles]

Most perfer the term "Turd Wrangler". Honestly, around here, those jobs are gold. Manual labor, science, legal, engineering. Operating a district in the mountain west take a really diversified skill set, is specialized (job protection), government benefits yet get left the fuck alone.

[I love how when I go back and read my posts, i seem illiterate as I can't spell for shit and I don't proof read]