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Angel Investors

Postby Roger Brown » Mon Jan 15, 2007 5:32 am

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I don't think having investors will disqualify you for American Inventor. If I remember correctly the Inventor of Word Ace and the Portable Gym said they had spent over $80,000 of investors money getting their product to the point of development they were currently at.
The interesting question is what is the percentage split between yuo, the investors and American Inventor. Because most of the angel investors I have talked with want 51% or higher giving them control over their investment. Once you get investors and lawyers involved you turn from a majority holder to a minority holder. I have heard of cases where you still have control, but that seems to be a small percentage of the time.

Below is a portion of the question and answer section from American Inventor. I wonder how many entrants actually read the whole 8 pages.

25. If I submit my invention to the show, will I be giving up any rights in my invention?

If you do not advance past the audition stage, you will not have granted any rights in your invention to the producers or the network (other than the right to show your invention on television and related promotion and exploitation of the Program). However, participation in the show may be considered a "public disclosure" of your invention which may affect your ability to obtain a patent in certain circumstances. You are strongly encouraged to seek independent legal advice from a patent attorney regarding your invention before coming to an audition. If you advance to the top 9 finalists, you will grant a one-year exclusive, worldwide option for all rights in your invention to the producers & ABC. In consideration for one million dollars as an advance against royalties, the winning inventor will grant to Producer an exclusive, worldwide perpetual license (with possible right of reversion in the event the invention is not exploited by Producer or its designee after a period of five years) of all rights in the winning invention.

55. Once I audition for the show, who will own my idea?

At all times throughout the Program, the inventor will continue to own 100% of his/her invention (including patent, if applicable). Producers & ABC will only be granted a license to exploit such rights, and only if you advance to the top 9 finalists.

If you do not advance past the audition stage, you will not be granting any rights in your invention to the producers or the network (other than the right to show your invention on television and related promotion and exploitation of the Program).

If you advance to the top 9 finalists, in consideration for the $50,000 you will be given to further develop your invention on the Program, you will grant a one-year exclusive, worldwide option to license all rights in your invention to the producers & ABC. This means that the producers and ABC have one year in which to determine if they wish to produce and distribute your invention, and for that year you will not be permitted to commercially exploit your invention.

If your invention is the winning invention, in consideration for the one million dollars (advance against future royalties), you will grant to the producers & ABC an exclusive, worldwide perpetual license (with possible right of reversion in the event the invention is not exploited by Producer or its designee after a period of five years) of all rights in your invention.

57. Do the top 9 finalists get anything in addition to the $50,000 they are given to further develop their invention?

The top 9 finalists have the opportunity to win the one million dollars. If you are in the top 9 and your invention is not selected as the winner, the producers and ABC may still decide to commercially distribute your invention as well. Each of the 9 finalists will grant a one-year exclusive, worldwide option to license all rights in their invention to producers & ABC. If the producers and ABC do elect to exercise this option, the finalist inventor will then grant to Producers & ABC an exclusive, worldwide perpetual license (with possible right of reversion in the event the invention is not exploited by Producers & ABC or their designee after a period of five years) of all rights in the invention. The terms of the license will include a provision for the selected finalist inventor to receive a share of the royalty in connection with the commercial distribution of the invention.

Postby buddyjimmy » Tue Jan 16, 2007 8:14 am

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Dear fellow inventors and, hopefully, investors;

Here's a brief description of my invention. Any feedback would be appreciated.

“The Revitalizerâ€

marketing

Postby Roger Brown » Tue Jan 16, 2007 8:58 am

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Sounds interesting. Who is marketing the product? Do you already have a company lined up to produce it? Sounds like you have product that woudl sell best on the 30 minute infomercials like bowflex, Ab roller, etc

Postby buddyjimmy » Tue Jan 16, 2007 12:43 pm

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We have a manufacturer in China but don't yet have a company to do the marketing and distribution. We were working with one Infomercial company but they decided in the end that they weren't comfortable going with a completely new type of product...rather than the 37th version of an ab machine. These are the same guys that sold the Pasta Express. Innovative thinking is not common in the infomercial business. So, we're thinking of manufacturing a limited number and doing a test on QVC. If it sells well there then we'll have no trouble getting signed with a company. To manufacture a limited number for QVC - several thousand - requires some capital. We're talking to a couple of potential investors but I'd like to locate a few more.

Postby Road Show » Tue Jan 16, 2007 12:55 pm

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The magic phrase "if it sells well there" would attract both skepticism, such as "what if it doesn't sell well", and an obvious comment that once the product has proven itself to be a popular seller, there would be an unlimited number of funding sources available. Television is an expensive medium to gain exposure for a new concept, therefore the lack of what you term "innovative thinking". Infomercial companies are sophisticated enough now to shy away from any but the surefire winners.

Please e-mail me at theroadshowguy@yahoo.com for some information I think will benefit your efforts on the marketing end. I may even have a contact who would be interested in investing.

Possible Clients for you

Postby Roger Brown » Tue Jan 16, 2007 1:02 pm

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You might like to try these contacts. Remeber me when you are famous and filthy rich. LOL
http://www.rogerbrown.net

http://www.everlast.com/ Everlast M&M fitness equipment
Ron Kohen 212-822-1566

Stamina Products http://www.staminaproducts.com/
Jim Lucas 417-889-7011

Body By Jake Phil 973-275-5599 bodybyjake.com

Bell Sports Inc Terry Stern 831-420-4134

Postby buddyjimmy » Tue Jan 16, 2007 1:32 pm

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Roger, thanks a lot. I really do appreciate it. I'll follow up with these leads and keep you posted.

John

Postby coolmax » Thu Jan 18, 2007 3:34 pm

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The apparel industry is a cut-throat industry.

Look at the award shows & see what happens a day later.

If you had an International Unisex Apparel Garment that's a totally new concept & unlimited in scope in the Apparel Industry what would you do?

If it is not mass-produced before you show it on National TV, what do you think would happen? Regardless of a patent.

American Inventor allows the perfect platform for a product like mine.

I can walk the walk & talk the talk guaranteeing everything I say in writing :D

Postby coolmax » Fri Mar 09, 2007 3:15 pm

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Sense I said I could Guarantee it in writing.

I wrote the Guarantee.

Investing in my idea is a sure thing - I Guarantee it :D

apparel

Postby Roger Brown » Sun Mar 11, 2007 10:28 am

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This may be a stretch for an idea, but have you tried contacting any of the Super Models agents like Tyra Banks? Is your product something she would wear and could promote?
She definitely has backers and clout of her own. If she were to partner with it you would have your branding and backing in one package.
Come visit my sites at http://www.RogerBrown.net
or http://www.looking2license.com
I have gotten 9 products licensed spending less than $100 on each, you can too.
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