hi I’m Evan Carmichael welcome to another edition of ask Evan in today’s
another edition of ask Evan in today’s
another edition of ask Evan in today’s episode I’m going to answer a question
episode I’m going to answer a question
episode I’m going to answer a question from one of my newsletter readers Anna
from one of my newsletter readers Anna
from one of my newsletter readers Anna who is trying to raise fifteen to twenty
who is trying to raise fifteen to twenty
who is trying to raise fifteen to twenty thousand dollars to create a new social
thousand dollars to create a new social
thousand dollars to create a new social networking type of website and go after
networking type of website and go after
networking type of website and go after investors and one of my advice on how to
investors and one of my advice on how to
investors and one of my advice on how to do it so I know thanks for the question
do it so I know thanks for the question
do it so I know thanks for the question I think for you it’s a tough amount of
I think for you it’s a tough amount of
I think for you it’s a tough amount of money to raise if you’re looking only at
money to raise if you’re looking only at
money to raise if you’re looking only at fifteen to twenty thousand
fifteen to twenty thousand
fifteen to twenty thousand you’re not really getting a serious
you’re not really getting a serious
you’re not really getting a serious investor involved you know you’re not
investor involved you know you’re not
investor involved you know you’re not getting somebody who has a lot of
getting somebody who has a lot of
getting somebody who has a lot of experience usually a lot of the angel
experience usually a lot of the angel
experience usually a lot of the angel guys that would be too low an amount for
guys that would be too low an amount for
guys that would be too low an amount for them so you might get somebody like a
them so you might get somebody like a
them so you might get somebody like a dentist or a doctor to come in and you
dentist or a doctor to come in and you
dentist or a doctor to come in and you know they have extra cash and would want
know they have extra cash and would want
know they have extra cash and would want to invest but they may not have a lot of
to invest but they may not have a lot of
to invest but they may not have a lot of experience and part of bringing money in
experience and part of bringing money in
experience and part of bringing money in is you don’t want just money you want
is you don’t want just money you want
is you don’t want just money you want someone who can help you and give you
someone who can help you and give you
someone who can help you and give you connections right they’re gonna be part
connections right they’re gonna be part
connections right they’re gonna be part of your ownership team they have equity
of your ownership team they have equity
of your ownership team they have equity in your business so you want them to
in your business so you want them to
in your business so you want them to give you more than just money you want
give you more than just money you want
give you more than just money you want them to be a helpful resource for you so
them to be a helpful resource for you so
them to be a helpful resource for you so you definitely want to qualify your
you definitely want to qualify your
you definitely want to qualify your investors but it may be too little an
investors but it may be too little an
investors but it may be too little an amount to go after a serious investor
amount to go after a serious investor
amount to go after a serious investor the next thing is a lot of people want
the next thing is a lot of people want
the next thing is a lot of people want to start social media sites so you know
to start social media sites so you know
to start social media sites so you know this is this is gonna be a negative
this is this is gonna be a negative
this is this is gonna be a negative hurdle for you to have to overcome
hurdle for you to have to overcome
hurdle for you to have to overcome there’s a there’s a stigma that a lot of
there’s a there’s a stigma that a lot of
there’s a there’s a stigma that a lot of the social media sites have already been
the social media sites have already been
the social media sites have already been created and for you know new products or
created and for you know new products or
created and for you know new products or services it’s encouraged to build around
services it’s encouraged to build around
services it’s encouraged to build around the existing social media sites instead
the existing social media sites instead
the existing social media sites instead of trying to build your own new one from
of trying to build your own new one from
of trying to build your own new one from scratch so there are still some examples
scratch so there are still some examples
scratch so there are still some examples of one that have paid it big but deserve
of one that have paid it big but deserve
of one that have paid it big but deserve there’s a negative bias that you’re
there’s a negative bias that you’re
there’s a negative bias that you’re gonna have to overcome and really show
gonna have to overcome and really show
gonna have to overcome and really show how you’re different and what’s so
how you’re different and what’s so
how you’re different and what’s so unique about you and why you’re gonna
unique about you and why you’re gonna
unique about you and why you’re gonna make it where all these other you know
make it where all these other you know
make it where all these other you know startup social media sites have failed I
startup social media sites have failed I
startup social media sites have failed I think a more important issue is you’re
think a more important issue is you’re
think a more important issue is you’re raising money to bring on you know a
raising money to bring on you know a
raising money to bring on you know a team to help you you know build this
team to help you you know build this
team to help you you know build this website so some company that you’ve
website so some company that you’ve
website so some company that you’ve hired to you know they’ve quoted you for
hired to you know they’ve quoted you for
hired to you know they’ve quoted you for the website and you’re gonna pay them to
the website and you’re gonna pay them to
the website and you’re gonna pay them to do it it’s really hard and from an
do it it’s really hard and from an
do it it’s really hard and from an investor’s point of view so I used to be
investor’s point of view so I used to be
investor’s point of view so I used to be a venture capitalist
a venture capitalist
a venture capitalist we wouldn’t touch a business like this
we wouldn’t touch a business like this
we wouldn’t touch a business like this because you don’t have the technology
because you don’t have the technology
because you don’t have the technology team in-house so for an investor they
team in-house so for an investor they
team in-house so for an investor they want to see at some point that you’re
want to see at some point that you’re
want to see at some point that you’re going to be able to exit
going to be able to exit
going to be able to exit from your business you’re gonna be able
from your business you’re gonna be able
from your business you’re gonna be able to pay them their money back so either
to pay them their money back so either
to pay them their money back so either you’re gonna go public we’re gonna get
you’re gonna go public we’re gonna get
you’re gonna go public we’re gonna get acquired or it’s gonna be some kind of
acquired or it’s gonna be some kind of
acquired or it’s gonna be some kind of management buyout and they look at what
management buyout and they look at what
management buyout and they look at what kind of technology do you have in the
kind of technology do you have in the
kind of technology do you have in the house and it’s really hard to run a
house and it’s really hard to run a
house and it’s really hard to run a business without having somebody on the
business without having somebody on the
business without having somebody on the technology side in-house right
technology side in-house right
technology side in-house right everything is exported to you know
everything is exported to you know
everything is exported to you know overseas or some other company even if
overseas or some other company even if
overseas or some other company even if they’re local you don’t have the
they’re local you don’t have the
they’re local you don’t have the experience in-house and it’s really hard
experience in-house and it’s really hard
experience in-house and it’s really hard to grow business that way and really
to grow business that way and really
to grow business that way and really hard to raise money for that type of
hard to raise money for that type of
hard to raise money for that type of business so what I would encourage you
business so what I would encourage you
business so what I would encourage you to do is try to find a partner who
to do is try to find a partner who
to do is try to find a partner who really understands the technology side
really understands the technology side
really understands the technology side of things can build it without having
of things can build it without having
of things can build it without having you give up you know capital win over
you give up you know capital win over
you give up you know capital win over the raise capital bring on a jewel
the raise capital bring on a jewel
the raise capital bring on a jewel investor try to find a partner who’s
investor try to find a partner who’s
investor try to find a partner who’s committed to it and work around that if
committed to it and work around that if
committed to it and work around that if you’re able to build up a prototype and
you’re able to build up a prototype and
you’re able to build up a prototype and get it going and get some momentum with
get it going and get some momentum with
get it going and get some momentum with it then will be a lot easier to raise
it then will be a lot easier to raise
it then will be a lot easier to raise money because you have somebody in-house
money because you have somebody in-house
money because you have somebody in-house you have core competencies you have
you have core competencies you have
you have core competencies you have intellectual property and you don’t have
intellectual property and you don’t have
intellectual property and you don’t have to keep paying outside companies to
to keep paying outside companies to
to keep paying outside companies to finance your development so I hope that
finance your development so I hope that
finance your development so I hope that helps they’ve been up to news you wanted
helps they’ve been up to news you wanted
helps they’ve been up to news you wanted to hear but those are my thoughts if you
to hear but those are my thoughts if you
to hear but those are my thoughts if you guys liked the video please give it a
guys liked the video please give it a
guys liked the video please give it a thumbs up below it makes me want to make
thumbs up below it makes me want to make
thumbs up below it makes me want to make more of these videos for you guys and
more of these videos for you guys and
more of these videos for you guys and I’d love to hear you have to think if
I’d love to hear you have to think if
I’d love to hear you have to think if you have some comments leave it below in
you have some comments leave it below in
you have some comments leave it below in the comments or if you have a question
the comments or if you have a question
the comments or if you have a question as well I can leave it in the comments
as well I can leave it in the comments
as well I can leave it in the comments below and we’ll see you on the next
below and we’ll see you on the next
below and we’ll see you on the next episode
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