Just because we are in an economic recession, it doesn’t mean you can’t be doing well. A few weeks ago I invested money in a venture fund called the Founders Co-op. Currently we are looking to invest up to $250,000 in multiple companies who are based in Seattle or looking to move up there (there is no state tax in Washington).
Here is what the Founders Co-op can offer you:
- Money – with capital you’ll be able to grow your company.
- Expertise – unlike most venture funds, the Founders Co-op isn’t made up of finance people, instead we are all entrepreneurs. Because of this you will get advice from people like Ben Elowitz who co-founded Blue Nile and took it public. Or Andy Sack who founded three Internet startups and sold them (the first company was bought by Acxiom, the second was bought by the New York Times, and the third was bought by Microsoft).
- Networking – meeting random people on a regular basis is easy, but meeting people that can help your business grow is hard. Through the Founders Co-op you will get to meet the right type of people.
I know this may not sound attractive to you, but this is truly a once in a lifetime opportunity. The people in the Founders Co-op changed my life. They took me under their wing and helped grow my companies. Not only did they give me business advice, more importantly they are good friends who are always looking out for my best interest.
If you are interested in having what I have, I highly recommend checking out the Founders Co-op and consider applying for venture financing.
Update 1: If you need any help or have any questions, feel free to leave a comment.
Update 2: If your company needs more than $250,000 you can still apply for funding from the Founders Co-op. In many cases the Founders Co-op will still fund you, but through our network we will bring on other investors to participate.
Update 3: Whether you have a new business idea or an existing business, you can apply. This opportunity is for anyone.
Update 4: For those of you who are wondering about my involvement with the Founders Co-op, I am pretty much a Limited Partner. All this means is that I invested money in the Founders Co-op. I am not involved in the daily operations, but I have some say on what companies get funded. I also will do everything in my power to make sure that the companies we fund are successful.
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Dude you’re a stud, this kind of advise/opportunity only comes along by those who know about it, thanks for sharing, I might just take you up on it.
Best of luck! Let me know if you need any help or have any questions.
I have a blog under a premium domain name which I just started. http://www.bloggingbanks.com
If I could get the expertise and funding for my site, which would offer best CD rates, online checking and savings account information as well as personal finance articles for savers, I would be able to benefit my users, advertisers and investors.
Recently BankRate purchased a similar site for $15 million – http://www.bankaholic.com. I am willing to part with my site for less than that now. It will definitely cost you more in the future however.
What makes you different from all the other BankRate competitors? I don’t mean to drill you, but if you want to be successful you need to have a differentiating factor.
That’s one of the most crucial things that bloggers and website owners need to establish.. For most people.. Anyone could take their job or start up competition in a matter of seconds.
Not only do you need to differentiate yourself, but you also need to have a good value proposition. Why should someone come back to your website?
Hey Niel, Thanks for heads up.
This opportunity available for Indian companies?
The company just has to be willing to move to Seattle, or live around that area.
Interesting… if selected how quickly would one have to move their company to Seattle? Is this necessary in all cases?
I am not sure on the details. Either way it is worth applying…
Washington’s a pretty big state…it would be a heck of a lot less overhead to run your company in Spokane, Vancouver, Tri-Cities, etc.
You probably don’t have to be in downtown Seattle, but just driving distance.
I agree with most of what you said, and actually read a post on Under the Radar just before yours that drives home the opportunity you just mentioned.
The Under the Radar Blog had a post where they interviewed Tim Chang of Norwest Venture Partners and he was asked how startups can get in touch w/ VC’s.
Tim’s response was “One of the best ways to reach a VC is through a mutual friend or trusted contact — warm intros are the best way to ensure that your deal stands out above the noise.”
From all that I have read about the VC industry, that is 100% true.
I hope you get a lot of responses from this, as this type of contact for those looking for funding doesn’t happen all the time.
Also, just being in the know about a fund is 1/2 the battle since there are thousands of VC’s out there (Yes, thousands. With more popping up all the time. Try sorting through that and finding one that is focused on your niche.)
I will add Founder’s Co-op to my database of VC’s. Thanks for the post.
Thanks for the kind words. As you mentioned, most people don’t realize how great it is to have an introduction or an open door to a VC. It is really hard to get money from investors that don’t personally know you.
I can’t move from Florida and it is also a no state tax place. Quit the day job because I was constantly hassled by an idiot and am in process of building a Disney related website business. It never hurts to ask, right? At least, I can follow up on all the good leads. Thanks Neil.
Yea, I am not sure if your business would work in any other region. Maybe southern California.
Hi Neil, great advice as usual. Thanks for the information, it would be great to be able to take you and your partners up on that opportunity. Since my company is an internet-based company, do we need to move to Seattle, or would moving the incorporation to Seattle suffice?
Also, does it need to be a brand new startup, or can be an existing company looking to expand? (The application referenced having a prototype or time-frame for something to market).
The company actually has to move to Seattle. Most venture funded companies aren’t incorporated in Washington.
It can be an existing company looking to expand.
Sounds like an amazing opportunity for the up and coming entrepreneurs.
Thanks! Hopefully you’ll apply.
If you said SoCal or Hawaii, I’d be first one in line.
Love Seattle though.
You should consider applying. You have a great website and domain name.
I don’t care who you are anyone could use 250k. The picture cracked me up, I have seen it before but gets me every time.
I am glad you liked it. I try to find funny pictures for every post.
This could be a great opportunity for someone based in that area or even someone starting a business who can relocate. I wish we didn’t have state taxes in my two business locations but we are getting taxed 15% or higher.
State tax is what is killing my companies as well as my personal income. Most of it goes to the government.
I was just hoping for the Kung Fu lessons, they’d have to be less than 250k. Has anybody seen those matrix moves you do Neil? http://zi.ma/2dab05 Could probably earn some extra cash teaching folks your fight style.
LOL! I didn’t know that you had pictures of my matrix moves.
This is an amazing opportunity, I like the fact that the fund is made of all entrepreneurs and not finance people, really gives the opportunity to have real support and not just money being provided.
That is the best part about the Founders Coop. Getting money from us compared to any other VCs would be a strategic move.
Neil,
I’m an unemployed Affiliate Marketing newbie, suffering from Info-overload, and wit hzero funds to start a business in PPC or anything else.
Where is the $100,000.00 Venture Capital Funding Company that can help me?
Respectfully, Nicholas Chase (pending BK in January 2009..)
Make a pitch to the Founders Coop and you may get it.
Hey Neil,
I was wondering if you have recommendations for something as such down in Southern California. I find that I lack a consistent network of experienced people to learn from and get advice. Preferably someone to kick my ass to start something in the right direction haha. Thanks.
Brian
I don’t know of any similar funds in SOCAL. But you could come to http://blog.mixergy.com/wp-content/invite/WunderMarx.html which is a good start.
Hey Neal, I don’t know if you remember but we met at TC50. I talked a little bit about the startup I am currently working on (Mugasha – Electronic Music service) I have been looking at this opportunity since Techcrunch posted about it. The only caveat is, my team is in Portland. Do you think it can still work out?
I am not 100% sure. If I were you I would apply and go from there.
Sure Neil you wait 2 months after I leave that area to make an offer… schweet
I probably would have applied otherwise – btw Bellingham Wa, is a GREAT place just north of Seattle – overhead is low and it’s 1.2hrs driving distance
You can always move back.
I would invest in real estate now. the market is so cheap and the best part would be that you would own ‘real’ assets, instead of paper with the stock market.
All the real estate tycoons I know say that you should wait 8 months to a year.
You say paper like its worth nothing..
I don’t think he is saying paper is worth nothing, but instead real estate is more tangible. Probably because the stock market isn’t doing so well right now.
Wow, I think the only thing stopping me from applying is having the need to move to Seattle. It’s a risk, but I’m not too sure
-Mike
You should apply and go from there…
awesome! I see that the Founder’s Co-op has invested in coolerplanet, I’ve seen those guys make some great progress over the years. Neil, do you know the founders? Anyway you can make an introduction? There are some possible ways we can work with each other.
Hey Deep, if you can email me at neil@acsseo.com, that would be great. I don’t know the founders, but it shouldn’t be hard for me to get you in touch with them.
Venture capitalists do more than just invest in their own portfolio, the they provide many interested producers with the sense that there is more opportunity and demand going around than there might seem to be.
I am not exactly sure what you mean. Do you mind clarifying?
With the Founders Co-op, we also give a lot more than money. We help entrepreneurs in every aspect of their business.
I guess it never hurts to try! Im interested in what possibilities may arise. With the nature of the internet – work can be done anywhere at anytime so relocation for me may be possible but yet scary because that means leaving my comfort zone.
We all have to leave our comfort zone sooner or later.
This is a great opportunity.
I sent in my application the other day
Best of luck!
Niel, what are your thoughts on communities these days? Do you still see any opportunity in rich niche communities? What would you look for in a community today?
I think there are lots of opportunities for communities. The only thing is, you have to go after a niche and provide something special that these other communities do not provide. I am not sure what the something special is, but I do know it isn’t tons of useless features that look cool.
Neil,
Thanks for the heads up.
Our company’s proprietary technology is used within the Sports & Entertainment companies, currently out of Southern California.
But with the integration of Interactive Marketing, and OnSite, as well as OnLine Sponsorship angle, it could be used at the Seattle Seahawks or Mariners games.
Does the entire company have to move, or just a few of the starving executives??
Thank you,
EventScreen
I am not 100% sure. I would consider applying first and if the Founders Co-op is interested, things can probably be worked out.
Hey Neil brilliant idea:
Quick question: are you looking for wb-based ideas only or ideas by entrepreneurs willing to re-locate to Washington?
Web based ideas.
I like the approach of entrepreneurs investing in other entrepreneurs. It’s amazing how out of touch some of the vc’s out there seem with what it really takes to succeed with an early stage startup.
What you have to realize about VCs is that many of them are finance/business guys and not entrepreneurs. They are very well connected and are able to raise tons of money, but they aren’t visionaries.
what about a business that can be started/moved anywhere but is currently in southern california?
You should consider applying and if you are accepted, I would go from there.
I guess it never hurts to try! Im interested in what possibilities may arise. With the nature of the internet – work can be done anywhere at anytime so relocation for me may be possible but yet scary because that means leaving my comfort zone.
With some Internet companies you can run it from anywhere, but not with all. For example if you are a celebrity related Internet company it would be wise to relocate to Southern California. If you are a media based Internet company, you may want to consider relocating to New York.
Hi,
I actually don’t want your money, lol. Just your brain:) I started a few websites and although one makes money I just don’t know how to market them. They both PAY you to use them, but I’m finding that I don’t know how to market them well. Any ideas on how to do that would be VERY much appreciated:)
One is http://www.getpaidfrom.us – a 50/50 blog/forum host that splits the ad revenue income with the author. The other is a dating site that pays you to use it, called http://www.zuedit.com.
I thought hey if I pay people they’ll just come. Not the case. So again, ANY help or advice you could offer me I’d appreciate it:)
Thanks,
Dave
I would first start off by hitting up bloggers that are related to those subjects. For example I would send a custom tailored email to the make money online bloggers as well as dating bloggers and see if they would cover your sites.
After you do that consider optimizing your sites for search engines: http://www.seomoz.org/article/beginners-guide-to-search-engine-optimization
Thanks for the reply Neil, I’m really impressed with quick response on comments. This is one of the reason why I rate your blog as one of the best online today. Thanks , I reckon you should have a donation button, even to show gratitude for the advice.
Monica
I like the concept of a donation button, but I am not blogging to make money. I blog because I like helping others.
Neil,
We were not selected but I am interested in your companies services. What is the best wat to engage you for a quote etc?
Thanks,
Shuki
Send an email to neil@acsseo.com with the details.
Hi Neil,
Do you have any idea how long the screening process for applications takes?
Thanks,
Wale.
My guess is that you will have a response within a few weeks.
Niel, thanks for your generosity and inspiration.
philanthropy, entrepreneurs and innovation is what makes this country great,… that, and tax loopholes.
I will follow the link and see if my grand idea is one worthy of funding.
thanks and take care
bryan
Good luck!
Hi Neil,
I have a venture that I would like to share and possibly apply for the funding…
Please advise of the next steps.
Regards- Bipul
Bipul, I would go to the apply page and follow the steps.
Now that is PHENOMENAL!!! Wow. I just went over to check out the service, really neat. I think a lot of people will really benefit from this very program.
I am not sure if you applied, but if you haven’t you should consider doing so.
You’ve said: “there is no state tax in Washington”
What you mean, business owners don’t pay taxes there??
People in Washington (included businesses) do not pay state tax. For example in California, state income tax is roughly 8.5%.
Good Luck Neil finding that worthy growing business!
Neil,
The flash-storage related company can apply? Or it is beyond fund focus?
thank you in advance,
the founder.
Anyone can apply.
Neil, I want to know more. I have a CMS, that powers some sites that i am sure you know of. The System is driving traffic on about 10,000 unique SEO terms per month off of less than 5 domains. You have my email.
Go to Founders Co-op and apply or contact them. That is the best way to learn more.
I am not 100% sure. I would consider applying first and if the Founders Co-op is interested, things can probably be worked out.
Yea, there is no harm in trying. If you don’t like what you see, you don’t have to go through with it.
This is an amazing opportunity, I like the fact that the fund is made of all entrepreneurs and not finance people, really gives the opportunity to have real support and not just money being provided.
Exactly! The main reason to get money from the Founders Co-op is because of the people.
A generous offer. Let me know if you ever offer if in Australia
You could move to Seattle.
Seattle is nice just stay away from the park by the water, west of the space needle, some guy cam up to me and asked if I was looking for some weed. I didn’t hear him the first time thought he said “looking for me” had him repeat it and holding back my laughter I said no. It was so funny because I was there for a PTK trip and was all dressed up.
Anyways, what kind of advice do they offer, is it like a chamber of commerce, small business association, or S.C.O.R.E.
The Founders Co-op is a group of people who fund other startups. So we more so hear pitches and fund companies we like. Once we fund companies then all the members help them out so that they succeed.
Neil, that is the most unexpected post that I have ever come across. For the moment, I am not in need, but hope to be soon enough when, you bet that I shall contact you.
I am always willing to help out.
Wow, to think that everyone believes there’s NO money anywhere?! I guess the books are right – when you think there’s no money, there’s no money; but when you believe there’s money, you will find it. Interesting indeed.
That’s right. If you want something really badly, you will figure out how to get money for it. Just like if you want to go to a club every Friday, you will find money to do so.
Why to believe such a nonsense? There’s a lot of money around. We just have to find the ways to find them and use them properly. And, perhaps, current financial situation in the world is very good for those who think outside the box.
Exactly. If there is a will there is a way.
Buddy u r such a stud….
Not only do you need to separate yourself, but also need to have a good value proposition. Why should someone come back to your website?
Hpe u apply it
Thanks! You should consider applying if you already have not.
Hello Neil,
I am currently residing in Poland and as you may know already Poland is an up and coming country and I actually have a few ideas
that I would like to implement into Poland.
Could you please send me your email address and I shall send you my business plan and you can see what you think.
Also at this point it would be a single shop but I would really appreciate if you look at the larger scope, I mean franchise possibilities.
Sincerely
Christopher Bradbury
You should first read http://www.quicksprout.com/2009/01/21/how-to-raise-venture-capital/ so you can get my perspective on business plans.
My email is neil@acsseo.com