Fund Raising Experience for New Invention

[Steven Allen]

Been working on a new invention that has reeceived some positive response from Apple. Initially I hoped that my first working sample might only be around $150K. However, it appears to that it might exceed $300K.

Who has done any work in this area that would share publicly or privately their experience?

 

[phryxis]

Wow, that is an expensive invention. Can you chime us in as to generally what it is? Is it a consumer product? How much are you going to sell it for? How much capital are you looking to raise?

I just went through a successful Kickstarter campaign, I have a thread in this forum.

If it's a good invention and a consumer product, Kickstarter can garner a good amount of money. There are projects that get into the millions of dollars.

 

[Jimbo]

That is a lot of money for a prototype. Have you looked at all the various rapid-prototyping methodologies out there?

Can you provide some basic general info (without spilling the beans) to where this money is going?

-Jim

 

[Steven Allen]

Without spilling the beans it is an accessory that works via blue tooth technology with the texting application of the Iphone's IOS platform.
Perhaps we will look at other Apple devices as well.
All the technology exists it is just a matter of putting it all together
in a device about as large as a pen. The device is meant to be attached to a key chain and is a consumer product.

I was told by an engineering firm to expect about one year to bring it thru the development cycle and to expect to pay around $25-30K per month. I am hoping to sell the product for about $129.99 each.

I had budgeted and set aside $150K and so if you are aware of a company who can provide a rapid-prototyping methodology I would love to hear more.
I am looking for a turnkey enginereering group who can provide:

*Industrial Design
*Mechanical Engineering
*Electrical Engineer
*Firmware Programmer
*Application Design
*Sustaining Engineering to work with the Manufacturer

I was just starting the process of looking at Kickstarter and Touchfire.
Would love to hear about your experiences or thoughts on these two fundraising firms.

Great start to the discussion - MANY tahnks!!

 

[Jimbo]

http://www.edge-pdc.com/commercial

 

[sahtt]

Don't have much insight unfortunately but wish you the best and I'll be watching the thread closely. I have a few energy company ideas (conventional) but they require a ton of capital and a much better financing environment.

I'm sure you've already experimented with this path, but I am acquaintances with a general partner of a VC firm. His portion is 6-700 million; he was one of the first investors in netflix and a few big software companies. He gave a speech to his methodology two weeks ago to one of my graduate school classes.

Due to the poor investing environment they have a ton of capital at their disposal as people chase decent returns. He follows a simple formula-

25-50 million total investment (in tranches)
30-70% ownership
minimum 5 times, expecting 10 times his initial investment upon IPO/buy out.
~2 guys and a power point (just an idea and a competent individuals)
Passed the "science project" point.

His firm is Foundation Capital if the above sounds appealing. I'm expecting a commission if 3 years from now you IPO for 500m! :smile:

 

[Arshad]

Perhaps we will look at other Apple devices as well.

I have a bunch of engineering and senior executive contacts at Apple if you decide to explore this path. If nothing else, I may be able to make some introductions and get you in touch with the right people.

 

[Steven Allen]

I have a bunch of engineering and senior executive contacts at Apple if you decide to explore this path. If nothing else, I may be able to make some introductions and get you in touch with the right people.

Can you PM this info to me?

 

[Steven Allen]

Don't have much insight unfortunately but wish you the best and I'll be watching the thread closely. I have a few energy company ideas (conventional) but they require a ton of capital and a much better financing environment.

I'm sure you've already experimented with this path, but I am acquaintances with a general partner of a VC firm. His portion is 6-700 million; he was one of the first investors in netflix and a few big software companies. He gave a speech to his methodology two weeks ago to one of my graduate school classes.

Due to the poor investing environment they have a ton of capital at their disposal as people chase decent returns. He follows a simple formula-

25-50 million total investment (in tranches)
30-70% ownership
minimum 5 times, expecting 10 times his initial investment upon IPO/buy out.
~2 guys and a power point (just an idea and a competent individuals)
Passed the "science project" point.

His firm is Foundation Capital if the above sounds appealing. I'm expecting a commission if 3 years from now you IPO for 500m! :smile:

Do not think our product really needs VC $$$. We know who are customers are Apple, Verizon (Android) and RIM (BlackBerry). They either want to offer it as an accessory or they do not. Once any of them works with us we will have more then enough $$$ to sell directly to those consumers who wish to purchase from us directly. Of course, we will make more money when consumers buy from us directly, but that will create more infrastructure and support issues.

 

[PHOEN$X]

Reminds me of this:

http://www.engadget.com/2012/04/12/pebble-smartwatch-raises-100-000-in-two-hours-retires-on-a-bea/
http://www.kickstarter.com/projects/597507018/pebble-e-paper-watch-for-iphone-and-android

Good luck!

 

[moprblms]

http://news.yahoo.com/blogs/this-could-be-big-abc-news/brilliant-idea-quirky-162227841.html

http://www.quirky.com/