Great suggestion Carl. We’re actually working on that right now. We are about to launch an entire new education section.

Thanks!
Matt

Recently I had the opportunity to talk to some “angels” and some “VC” and they are very different in many different ways. In our area we have a great angel network called Central Texas Angel Network. Might be a good point of reference for EN members.

Edison Nation has to be careful about posting attorneys, angels etc. There are many horror stories about patent attorneys/agents. I had one, used a firm in Midtown Manhattan, thought they would be good. Also, I’ve hung around angels and been to the meetings…there too can be people who want to charge you to find you money or advise you. Some of these can be scams just like many others. Just be careful.

To find angel investors just search “angels + ‘your state’” The angel networks are more legite I think.

A good site is go4funding.com Written up in publications like the Wall Street Journal. I posted on there very vague and did get 3 offers from angels and VC’s to give them more info in a matter of a few days.

Remember though, angels and VCs (VCs are not for the independent inventor, for established corps that will go public) are very professional people. You must have your business senses about you, a business lawyer to advise you (so they don’t beat you up) and a well written business plan.

Ron Komorowski
Inventor of Handi-Straps
www.handi-straps.com

Good advice Ron. Also keep in mind that the Securities and Exchange Commission has regulations that apply to businesses that are seeking investors – even small businesses – so it is a good idea to be sure you are familiar with them before soliciting funding.

Chris is absolutely right. I trusted a consultant that told us he was very experienced in raising capital, turned out he did not have the right certification and license. Our company, eventhough we had nothing to do with it, were fined $7500.00, as was he and to go along with that, we were placed on a database with fly by night construction crews and scam artists. If that was not enough, we also had to give the investors that they already got for us, the right to rescind their investment, which two actually did, $60K that we had to pay back before we even used it! So listen to Chris and be very careful with outsiders you hire to help you.

Just my $02.

Trent

Also be prepared for what you are getting into when dealing with investors. They are in it to make back their investment plus a return for that investment. They will want a percentage of the company for that investment. The problem comes in when you get so many investors and others attaching to your investment that you start out the majority stock holder and end up the minority stockholder.

Seeing how active this thread is I’d like to add my story and an important point.

Say you need a $100,000. You need prototyping maybe, let’s call it a production model prototype; ready to go. You need a little stock or systems ready to produce on call. You may also need a little marketing money which manufacturers need to do for themselves too.

I had plenty of “professional” investors offering along with people with a few bucks that wanted to get in.

I had big business people with MBAs and they were both CEOs of companies that went public located in Manhattan saying I could not look to a manufacturer to put up some backing. I proved them wrong.

I would say to give it a shot getting a manufacturer to put up what you need. It is much cheaper for them as they are set up in your line as you pick one that relates to what you have.

Use the manufacturer as the investor. My deal was I take care of the marketing and they take care of production and distribution.

I felt I was not Santa Clause. I am not going to bring a big product to a manufacturer without them putting in something like I did.

The tactic will work if you can show as best you can a probable bright future and ofcoarse offer an exclusve. You will need a domestic manufacturer to work this close though which is what you should try to establish first anyway.

Ron Komorowski
Inventor of Handi-Straps
www.handi-straps.com