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ECT News Community   »   E-Commerce Times Talkback   »   Re: Raising Capital: Dos and Don'ts for Small E-Businesses



Re: Raising Capital: Dos and Don'ts for Small E-Businesses
Posted by: Nora Macaluso 2001-11-20 17:14:55
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Looking to raise money for a small online business? Experts say that in today's difficult
economic environment, some basic tenets for securing financial backing remain -- but
other rules have changed, and it is as important as ever to be abreast of those changes.
For example, Gartner Group analyst Robert Anderson told the E-Commerce Times that having
a product that appeals to a niche market will increase a company's chance of getting
funding.


Re: Raising Capital: Dos and Don'ts for Small E-Businesses
Posted by: Jeff Whitney 2001-11-23 23:46:47 In reply to: Nora Macaluso
It's unfortunate that VC folks have become so leery of anything. Period.
Harvey Seeger, CEO of GXS, recently stated that investors no longer look
at ROI in terms of years. They expect payback periods to be less than
six months - preferably three. That's an ROI of a cool 200+% - arguably
not needing a VC for those kinds of returns. So, here's the question: if I
have a hot new technology, one that even includes a patent, a defined
market and a clear value proposition, how am I supposed to find VCs
who've taken refuge inside a fortress, defending their previous investments
at the expense of taking on anything new and reasonable in terms of ROI?
Jump to:
Which in-person activity do you most want to resume when the pandemic is over?
Attend my place of worship
Frequent bars, clubs or restaurants
Gather with family or friends
Go to entertainment or sporting events
Join colleagues at work or business events
Participate in group athletics or exercise
Return to my school
Take my children to their school
Travel
Visit my health practitioners