Venture Capital, who here has done it?

[Mr Stubs]

Has anyone here done this?

I may have the opportunity to lend money to a start up business. What type of return on your money is typical and over what type of time period?

I know it’s a very open ended question but still I figured I would ask. It would be a small amount, 5-10k in my mind.

 

[Mr Stubs]

crispins?

 

[denverd1]

depends on the risk and time frame. is this a loan or are you an owner?

for loans, wouldn't take less than 10% annually. if owner, whats your payout/reward for the risk?

 

[crispins]

crispins?

I've actually never used any money that wasn't my own to start anything.

If I was going to lend a startup (I wouldn't as that seems like a sure fire way to lose it or a friend)

I would just ask for a interest return, like 10% a year until it is paid back.

It just seems trying to get a % of the business seems complicated and something that would cause disagreements down the road.

 

[RusM]

Have you watched Shark Tank?

 

[Mr Stubs]

Have you watched Shark Tank?

No

 

[grumpy356]

To me 10k isn't venture capital money. I'd run 2 or 3. Times that on a credit card just to keep from dealing with anyone else about my business.

 

[Baconator]

Are you willing to lose $5-10k? That would be my first question.
When I was starting my business up the people I talked to wanted 10-15% return over 2 years, or a stake in my business. It didnt make sense for me so I never pursued it though.

 

[TRINDU]

Have you watched Shark Tank?

Royalty deal!

 

[denverd1]

Royalty deal!

lol

 

[Mr Stubs]

Are you willing to lose $5-10k? That would be my first question.
When I was starting my business up the people I talked to wanted 10-15% return over 2 years, or a stake in my business. It didnt make sense for me so I never pursued it though.

Ya, that’s a amount that I would be willing to gamble on this upstart company.

I have no desire for a piece of the business pie. That sounds a bit more complicated than I would like.

 

[2big bronco]

I have lent money to friends starting up auto shops but it was more of a "here's 10k" pay me back whenever you can type of thing.

I wouldnt loan money to a buisness that cant get a loan for less then max legal intrest... whatever that is, probably 20-30%.