Funding for Biz
Out of context: Reply #21
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I'd ask yourself some questions instead of uncritically assuming you need to head down the same path as every web startup in a made for TV movie.
First of all, do you really need the money? It's not 1998 anymore (or 2005 or whenever the 2.0 boom was), in fact we're in the middle of a pretty bad recession, which means much less funding to go around. Also, instead of cavalierly saying you plan to sell it in a few years, start from the assumption that your business will fail, since most do statistically. Do you still want to go to the trouble of raising 1.5 million?
If we're only talking time and effort here, I'd say it would be a waste of time and possibly even a mistake to pursue funding at all at this point. It seems perfectly feasible that you could find a way to put that in without investment. Remember, accepting money means giving up control, and while this might not seem like a big deal now, it very well may once you have nearly spent the 1.5 mil.
Another thing to consider is that if funding is eventually needed, you will have a stronger hand to play if you already have something built on your own, and at that point you will already own 100% of it.
Ultimately, getting this kind of funding is mostly about connections. Yeah, its great to have a business plan, but guess what, everyone has one of those. A friend with money, or a good contact who works at a venture capital firm is worth 10,000 business plans or good business ideas.