dopemelody

(Ad)Venture Capital part 1

So I'm trying to start my own business, and I'm learning as I go. I have decided that the best way to fund my business is with other people's money. So today I called my dad to ask him how to go about acquiring other people's money. My dad was a successful business owner who sold his company for a lot of money a few years back and now spends all his time doing yard work and cleaning the pool. This is how the conversation went.

Me: "I'm looking for ways to fund my company other than loans. I'm looking into several grants that the state offers and I want to learn more about venture capital."

Dad: "That sounds good."

"So, what can you tell me about it? How does it work?"

"Well, you find someone that thinks you have a good idea and has money. Then you convince them to give you that money."

"Right, but what then? Do I pay them back in installments or do they get a percentage of the profits or a stake in the company?"

"How should I know, when I started my business I wasn't a poor bum like you."

"Thanks, dad."