David Rose

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• Would Angels / VC's in the US be open to investing in web startups in India? I'm talking about those investors who do not have any physical presence (team or satellite office) here. If yes, who would they be?

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    Unfortunately I don’t know of any US investors without some kind of presence in India who would be comfortable investing there. If they were interested in that market, they would open an office there!

• How can a person who has only a small portion (and nothing to use as collateral) of the required capital needed to start a company raise capital?

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    Raising capital is not the first, or even most important, thing about starting a business. The odds against raising money from venture capitalists is one in FOUR HUNDRED, and even from local angel investors, it’s still one in FORTY. So therefore you’ll need to figure out how to start a company without raising capital, by getting fellow co-founders to work for equity, by getting money from friends and family, or by bootstrapping the business from its own cash flow. Good luck with your venture!

• Hi David, I have a fast food restaurant business idea. I am a newly graduated student with no capital. How can I know if it would be popular? in North America, and I need capital, I'm willing to go in business with someone. Any help or advice?

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    Starting a restaurant is even more risky (statistically speaking) than starting a high-tech web business. Banks simply won’t lend you money for it, and because restaurants are typically not scalable, most angel investors (and certainly no VCs) will consider it. That means to get started you’ll need to fund it from your friends and family, or else figure out a way to bootstrap it with no money. I wish there was a better answer, sorry!

• hi david, I created a education and career company. I made a new website for the people. Though there is no content. I was wondering, If you could provide me with any feedback. Website - www.thecareerbook.in

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    It seems like a nice start, although it’s not immediately clear from what’s there as to what you are specifically offering, or trying to do.

• Hi. I am trying to locate a usa printing company that will print my artwork onto white (kraft) paper bags. It's proving difficult. I need small quantities initially as I'm a just starting out. Do you have any suggestions? Thanks

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    I’m not a specialist in this area, but here are a few places that might be able to help:

    http://www.aplasticbag.com/KraftshoppingBags.asp http://www.uline.com/CustomProduct/CPBags_Ink.htm http://www.nashvillewraps.com/paper-postprint/showpage.ww?page=paperpostprint

• What are the common mistakes entrepreneurs make when pitching investors?

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    unrealistic assessment of market size unrealistic assessment of competitive offerings unrealistic assessment of competitive advantages unrealistic assessment of execution challenges unrealistic assessment of execution costs unrealistic assessment of timing unrealistic financial projections unrealistic valuation expectations unrealistic declarative statements unrealistic fundamental business idea lack of perceived integrity lack of execution track record lack of domain expertise lack of technical expertise lack of long-term vision lack of historical knowledge in the market space lack of perceived leadership capability lack of perceived communication skills lack of necessary operational skills on the management team lack of perceived ability to grow with the company lack of perceived willingness to accept advice or mentorship lack of carefully considered go-to-market strategy lack of potential for significant growth lack of potential for an exit-by-acquisition

• What questions do investors typically ask about SaS businesses pre-launch?

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    Questions similar to those they will ask about other types of businesses, particularly focused on things like getting to market, switching costs from existing vendors, competitive advantages, etc.

• How do you evaluate potential investments?

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    Carefully! Seriously, though, I look first at the entrepreneur, because I believe in ‘betting on the jockey, not the horse.’ There are a host of qualities I look for, including integrity, passion, startup experience, domain expertise, execution skills, leadership, commitment, vision, realism and flexibility. I then look for things like a growing market, outside validation, customer traction, a scalable business model, unique advantages, and a well-thought-through plan to reach the market.

• You must see all the deals that are happening. What trends do you see? Any specific ideas/spaces that seem hot right now?

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    I certainly don’t see ALL the deals that are happening (to put things in context, there are probably several hundred thousand startups seeking funding each year, and the larger venture funds might see 10,000 – 20,000 of them. A poor little super-angel like me would typically see only 500 – 1,000).

    That said, these days we’re seeing lots and lots of deals in the mobile/social/local space, as well as social music, social shopping, education, financial services, and, of course, daily deals.

• Hi David I am working on a next gen social game Would you like to invest in my project? My skype nick is alexandrudesign I hope to get a feedback, thanks

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    Thanks for asking, but I generally don’t do gaming deals of any kind. As for other investors, while social gaming is an interesting space, but also a very crowded one. Unless you have a product that is pretty much finished and showing some traction, I’m afraid that equity fundraising might be challenging at this stage. Good luck with it!