On Fri, 2013-05-03 at 18:11 +1000, Luke Weston wrote:
> that they'll be stolen, then it's time to take those valuable ideas
> and go out and get VC the old fashioned way. (Or the
> not-so-old-fashioned way, namely crowdfunding, which might be a good
> fit for what you want to do.)
I agree with everything Luke said, apart from the VC bit.
You should aim to bootstrap as far as you can get, before going to an
angel or VC. VCs expect some form of business that is basically ready to
scale up with an established market. Angels will invest in a rough
concept, but they expect so much equity that they work out vastly more
expensive than most other forms of finance.
And, neither will invest in anything that is meant to help people
without making a competitive return on their investment. With risk there
must be reward. If 95% of ventures fail, then the one that succeeds must
make back 20x the investment just for them to break-even. And in
reality, they aim to make more than parking their money in the share
market, so that's 10-20% p.a. for a very low risk investment and >>20x
over five years for a blue sky project. How much they make depends on
the exit value of the business, so it had better be high-growth. I doubt
that servicing the disability market is going to be tempting enough.
Finally, angels and VCs will universally require that the company be
made public at the end so that they can exit, which means if you are
genuinely paranoid about how the technology will be used, well you'll be
locked into being a shareholder alongside whoever wants to buy in and
potentially take control of the company in a few years.
To justify my statements regarding bootstrapping, check out the book,
"Bootstrap to Billions" by Dileep Rao:
http://www.amazon.com/Bootstrap-Billions-Entrepreneurs-Companies-Scratch/dp/0980047722
And for the bit about people not investing in anything other than
profit, read the book I already recommended, "The Power of Unreasonable
People". It is possible to find social venture capital, but not in the
usual places. But it sounds like you are starting a social venture and
should read this excellent book before agreeing with everyone on here
that you need to think of this as a business even if it's not one that
is motivated by profit. It should at least be motivated by still
existing in ten years!
Have fun,
Darren