I am thinking of starting a software business and maybe getting VC. Anyone here have any experience in that area? (getting venture capital experience)
I have. Is there anything in particular you want to know? How serious are you about your business? How much are you looking to raise?
My plan is to start the business on the side and then go full time after a year or so if it works out. It’s a software business. Don’t need much money to start, guess that depends on how well the business does at first. I know getting VC is not easy, it would be easier in CA but I live in NC. We have some VC firms here so I am looking into them now.
Just remember that they are not called “Vulture Capitalists” without good reasons.
I would suggest ignoring JWT Kottekoe’s advice. You can’t go in with the attitude that these people who’re investing millions of dollars in your business are vultures just because they expect to own part of your business and have a say in its future. It’s just business - don’t be emotional about it.
Have you considered seeking a small round of angel investment to get you started, or bank financing? It sounds like that’s a better fit for where you’re currently at. A VC is going to be looking to make a mulitmillion dollar investment in a startup with a full management team, or a nearly full one it can help you complete. The amount of investment you could use working on a business part time is not really appropriate for venture capital.
If you do meet with angel investors I’d suggest being cautious about calling it a side business. You might convince a wealthy aunt to invest in your side business, and that may be a good option for you, but a serious investor is going to want someone committed.
I suppose there’s a bit of a fine line, in that if I’m investing hundreds of thousands of dollars in you and your idea, I’m not going to want vast amounts of my investment going right into your salary. Maybe you could make the case for staffing up a few full time developers and only paying yourself a small stipend and working elsewhere part time. It’s tricky - if it was easy everyone would do it. But definitely be aware your plans to work part time may come off as uncommitted.
If I got the money I would not be working part time on the software.
I am just starting to look at this idea now, so I may not do it. Angel investment is probably a better way for me to go .
By luck I just signed up for a free online Stanford course about VCs and ways to fund a startup.
BTW, I guess the first idea I had turned out to be pretty good, Google added it to Android for version 4.4. Good thing I did not write that program, it would have been useless now.