Got funding (VC) .. Now What ?

I have been thinking of this for quite a time.. Say, I build a product, a descent product that has a potential to be sold out (atleast I think !!) .
I approach angel invester and signs a deal..
I have say $X to spend now. ( I do not know how much do ppl get generally) .
Now what would i do with that money ? Spend on marketing ? Spend on hiring more experience people ?

And why will any VC fund me ? What will he look in my product ?

Any answers would be appreciated..
thanks

 

Most VC's will not dish out any money on an idea, even a good one. They don't want to see something that might sell, they want to see something that is already selling. Just needs more capital to take it to its full potential.

If you get the money, you are spending it on implementing the plan you presented to them. You need to have detailed figures on how much it will cost for production, distribution, marketing, etc. Realistic numbers.

The money they give out is to be used to move forward with growing the business.

 

Right. You follow the business plan that you already submitted to the VC to get the money

 

VC are in for the money. They take the risk by funding a well-formed project which has a good chance of success with the option to sell out when the opportunities arises where they can cash out their investments. Of course, they also take on the risk of you failing.

A Venture Capitalist may be able to provide you with the business and management aspects of the operations and may take an active role in determining strategic arrangements and undertaking. They basically do not give you the money, they will buy a stake in your company.

Of course, if you are fortunate enough to get the money from the VC, you will need to follow through with your business plan.

Think of VC funds as a Scholarship fund. They are usually never there without conditions.

 

Expect to be handing over a minimum of 50% of your baby. VC want to be able to have some control and direct the venture. Without at least half ownership they have nothing. And they expect to be able to liquidate their holdings as soon as it can be sold for a profit. And then their on to the next venture.

 

follow the business plan. If you don't have one, I can write one for you for $99. Ask me for a sample

 

They definately won't fund you if you aren't showing them exactly where it's going and why it needs to go there.

 

This is hardly true. Of course they want some control and of course they want to sell but they rarely will "liquidate as soon as they can make a profit" and instead hold onto things longer than most would want to milk every dime they can get for it.