Private investor interested...now what!!??

[erfola]

Private investor interested...now what!!??

by erfola » Thu May 14, 2009 9:15 pm

erfola

White Belt

 

Posts: 3

Joined: Wed May 28, 2008 8:51 am

A little help please...
So I've been working on my invention, got my patent app filed and did a very basic prototype so I can confirm it works. While I'm waiting for the patent I have been working with a prod dev company and finished the conceptual design. Now it's engineering so I can move towards a pre-prod prototype.

Here's what happened...
Through serendipity I met two venture capitalists and told them my invention. They had questions and since I had talked to different design companies I had already been somewhat prepared with certain questions and answers regarding the product. They were both smiling and excited about the idea, this after them telling me about the many hurdles in launching a product. They gave me biz cards and said to call, which I did and it looks like a meeting may happen.

My questions...
1. I didn't want to miss an opportunity to speak about my invention to two vent cap's and at the time did not have an NDA but I thought it would be ok since I have filed for my patent. Is my paranoay setting in or was it cool to talk about it.

2. Since I'm working on engineering and don't have an idea of costs for production, etc. Is it too early to have a meeting since I'm sure they'll want to know numbers??

3. Any insight on what to expect if I do meet??

Thanks in advance for any help!!

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[PennyB]

Re: Private investor interested...now what!!??

by PennyB » Sat May 16, 2009 7:06 am

PennyB

Green Belt

 

Posts: 128

Joined: Wed Jan 30, 2008 4:41 am

Here are some links to review:

1. “Dated” article from a well-known entrepreneur/VC/speaker offering fine points:
http://www.forbes.com/2004/01/27/0127ar ... das04.html

2. 10 QUESTIONS VCS AND ANGELS ARE GOING TO ASK
http://www.instigatorblog.com/10-questi ... 007/07/20/

3. http://www.highbeam.com/doc/1S1-1202262 ... 01701.html

4.http://www.prnewswire.com/cgi-bin/stori ... 269&EDATE=

Regards,
Penny Ballou

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[terrycan123]

Re: Private investor interested...now what!!??

by terrycan123 » Sun May 17, 2009 1:11 am

terrycan123

Yellow Belt

 

Posts: 65

Joined: Mon Mar 16, 2009 10:35 am

• Website

Dear Erfola,

Congratulations on your invention and patent application.

Now come the hard part. Making money is where most inventors fail.

Knowledge is power. I recommend reading "Profit From Your Idea" by Richard Stim.

If your investors won't sign a MDA walk away.

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[Sarah23]

Re: Private investor interested...now what!!??

by Sarah23 » Mon May 18, 2009 7:01 am

Sarah23

White Belt

 

Posts: 5

Joined: Sat May 16, 2009 10:25 pm

Location: Shenzhen, China

• Website

Hi Erfola,

I’m not a patent attorney but I’ve seen a few people develop products. If you’ve dealt with professional venture capitalists, then they should keep their mouths shut and not tell others about your idea. I don’t know who they are but their level of professionalism is for you to decide. If they keep their mouths shut, then who is to know that they know anything? If they are professional venture capitalist you should be okay. Still take an NDA with you when you meet.

I consulted with one of my team who studied Entrepreneurship and Innovation at the AGSE. He said you should only meet with venture capitalists when you know exactly what you want from them. You need to be able to explain what it is that you want, how your idea will help people, and exactly what it will be used for. However, since they seem interested already, go for it. Just try to work out what you need from them so you have something to go by.

As for costs:
To get an accurate cost of production you’ll need to get some proper drawings and submit them for quotation. Remember when you are requesting for quotations you can ask for different numbers of production to get an idea of economies of scale.

I am interested in hearing how things pan out. If you get the chance let know. Good luck with your idea!

Regards

Sarah
Documentation and Quality Control Engineer
http://www.getyourstuffmadeinchina.com

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