Venture Capital

[[sighn]]

Hey all, got a small dilemma here:

I've got a completely new (except the kernel) OS, the base of a media delivery system; I've been working on the idea for some time, and have started working on it. The problem is; I've decided to make portions of it open-source; to attract developers, etc. but I have no capital to do anything.

A completely open source solution is impossible for the idea I have; security, the UI, etc. can't be open source, only licensed through its media network; which means I'd need some sort of capital to do anything. I've got a website going up, some beta testers and a couple negotiations for content for it, but all of this is useless if:

a) you don't have a name,

b) you don't have cash

and

c) you can't get people to take you seriously.

Chances are, none of you have ever been stuck in a dilemma like this; maybe one or two of you, but you're all probably over 18.

In Canada, we have a bank called the BDC for anyone, including "young" people; well, "young" is eighteen; and a "real" VC or bank won't take me seriously; I know that.

I've gone through all the scenarios, case-studies, figured out an ROI for investors, have a business plan, and a bunch of people backing me up; but I don't know how to go next; it's not like anyone writes a book titled "How to start-up a new content/media delivery system and network with a completely new OS minus kernel (which is heavily modified) and no capital"... It's just never happened.

The idea can take off, you can run Mac OS, Linux, Windows, BeOS and handheld apps all under it, it runs on any platform, etc.

I just don't know where to go next... Any ideas? Any suggestions? Any investors out there?

P.S. I was about to put this in the development forum, but it was more about money, so I decided to put it in general.

[iUk]

My Mother has done start ups for 20 years, so I've been around these environments for my whole life, and I might be able to help.

I would look up local forums and events that present companies to investors and venture capital firms. For example, here in Washington state there is something coming up soon called Invest Northwest where companies are presented before hundreds of investors and have booths, large presentations, hand outs, etc.

There's something here also called ESIF, the Early Stage Investment Forum. I've worked with companies who presented there working on their web site and promotional materials.

Those are your best bets. But do some research. These events are often specific, like Bio-Tech versus High-Tech.

Your best bet is of course an angel investor, which is some one who is personally rich and invests in your company with their money, not as a venture capital firm. These kind of people are often willing to take bigger risks, since they have money that they are willing to give away. But they usually ask for a bigger stake in your company.

Of course, for any of these situations, you need to be incorporated, holding monthly/quarterly/annual shareholder meetings, etc. If you are VERY early stage, then a specific marketing strategy isn't needed, but it helps to have a basic image and some promotional materials to present yourself.

You can probably do a search for venture capital firms in your area, and send them a package about your company. They don't often look at unsolicited packages, but you might get lucky. Often once you get your foot in one door, they mention names of other venture capitalist and angel investors they know, and it can snow ball.

Another place to start would be with a legal firm that specializes in working with start ups and getting them funded.

The only problem for you is going to be that there is a big stigma out there with investors over "open-source" and the whole "dot-com" / technology sector. As soon as they see that you are at any point restricted by a GPL or open license, they know that it will be all the more difficult for you to turn a profit. And with out turning a profit, they have little hope of getting any return on their investment.

I know you said you can show ROI, but they are especially critical in these times.

It's late, so I'm sure I haven't thought of everything, but if you want to email me, I'm happy to talk with you further, and ask my mother for some advice too.

iUk

intentionallyu@msn.com