Venture ROI ?

[Jople]

Can anyone tell me what ROI a venture investor would expect ?

In the U.S., . . . would this be the same in Saudi Arabia ?

What about other types of investment like, "seed capital" or

R&D funding ?

How would I propose a ROI from private R&D funding ?

 

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[C9Consulting]

It all depends on how much funding you are asking for. If you google the topic and do a little research, I'm sure you will find the right information. I'm guessing that if you were asking for millions, ROI would be significantly more than %25. If you're looking for angels, more than %15 (what they would get from investing in securities/commodities), would suffice as a great ROI.

 

[Jople]

Thank you,

Why am I thinking, VC = 10X ?

 

[C9Consulting]

Some VCs are way more "greedy" than others. If you go for John Thain's company, you'll need an astronomical ROI and concrete research to prove you can pull it off.

 

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[Jople]

It is beyond me how we would trust a Venture Capital company with our plans, I have seen first hand, more than once, how this can go awry, . .

I had a listing with a company who advertised to Venture capitalists including one described in the following.

Once I had an idea for turning landfills into lakes, then just after a capital company contacted me, a TV advertisement showing a high definition glossy of a lake that was once a landfill with tweety birds flying all around it, I tried to find out who was in back of the advertisement, but soon after they stopped showing it, and I could never locate them.

I didn't feel like going through one of those, "don't they have that already", deals,
so I didn't even reply to the capital company.

Previously, while research, I found an article about a County in New York scammed out of millions, by someone, who used the idea, I feel they appropriated it from the listing I had.

Would you care to comment on how you would propose a plan to a venture capital company ?

 

[Darkside]

It is beyond me how we would trust a Venture Capital company with our plans, I have seen first hand, more than once, how this can go awry, . .

I had a listing with a company who advertised to Venture capitalists including one described in the following.

Once I had an idea for turning landfills into lakes, then just after a capital company contacted me, a TV advertisement showing a high definition glossy of a lake that was once a landfill with tweety birds flying all around it, I tried to find out who was in back of the advertisement, but soon after they stopped showing it, and I could never locate them.

I didn't feel like going through one of those, "don't they have that already", deals,
so I didn't even reply to the capital company.

Previously, while research, I found an article about a County in New York scammed out of millions, by someone, who used the idea, I feel they appropriated it from the listing I had.

Would you care to comment on how you would propose a plan to a venture capital company ?

That's a very good point actually. People often make the mistake of going to venture capitalists with an idea for a company rather than one that already exists. Anyone can implement an idea; so why would they pay you money to do it when they can steal your idea and do it themselves. If however, you already have a business that's successful and just need money to grow further, then it would be wise to go to VCs because by that point they would be better off giving you funding rather than try to compete with you since you're already established.

This is especially true for websites that already have a lot of traffic; it would be extremely hard for them to lure that traffic away from you so rather than fight you they will just cash in on your success by funding you to help you grow. So, my advice is to never go to a VC until you've already established your company and are at a point where it will be hard for others to compete with you.

 

[Jople]

Very Good Answer, . . . Well said !

 

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[shane.hood]

Restaurants are among the most risky ventures. I think more than 1/2 of them don't make it. Any roi less than 100% would be too little. With a 100% roi at least the odds are about even.

 

[Jople]

Is there something wrong with the forum replies ? I can't seem to edit my post into paragraphs, and the fonts aren't working and I can't post an attachment ?