From: bluefire@well.sf.ca.us (Bob Jacobson)
Subject: Re: INDUSTRY: Some thoughts on investing in VR
Date: 6 Apr 1993 04:36:16 GMT
Organization: WORLDESIGN, Seattle



From the WELL (192.132.30.2) vr conference, in response to my earlier
remarks about finding investors for VR companies....

 
Topic  52:  The VR Business
#181: Peter Rothman (avatarp)      Mon, Apr  5, '93  (08:01)       4 lines
 
 Thanks Bob.  My experiences with US investors have matched your description
 in the above posting.  They're looking for a "big play" in VR, but don't
 want to invest in core technologies OR applications.  Sound contradictory?
 Don't ask me to explain it...
 
Topic  52:  The VR Business
#182: Neil Haldar (neilh)      Mon, Apr  5, '93  (08:19)      15 lines
 
 
 This sounds similar to our own recent experiences.  There are several small
 local investors interested not only in "the quick profit" idea, but several
 others interested because they feel that they need technology like this to
 survive in their own backyard.
 
 And Bob, you put it right on the mark - investors want to see something
 working, something tangible.  We've speculated that it's iconic in nature;
 as seeing is believing and believing presupposes faith.  Faith in what the
 investment can do, faith in those you're investing in, etc.
 
 The only bright spot so far, interestingly enough, has been the Small
 Business Association. (SBA)  At least someone at the federal level is
 listening.
 
 
Topic  52:  The VR Business
#183: Andrea (rpi)      Mon, Apr  5, '93  (08:20)      25 lines
 
 At RPI Advanced Technology Group we are setting up final round financing,
 having completed development rounds over the years. Small private investors
 are, indeed, easy to come by but the VC and super-I's are all wanting to see
 QUANTIFIED market data. This will always be a catch 22 as this is not a
 market upgrade but an entirely NEW market. There is no quantified market
 data!

 We have had the most luck by joining with other project fundings that are
 based off of traditional routes but destined to move in a new direction in a
 short amount of time; ie: Location Based Entertainment (LBE's). We have had
 great success licensing our prototypes and intellectual property to existing
 projects with theme park starts but future migration to malls, arcades,
 airlines, etc.

 We know many people, some right here on the WELL, that are doing great by
 getting Government SBIR and Defense underwriting. Others here can write
 about that. There do not seem to be any wars to fight so the SBIR's and
 similar seem to be for fairly passive and PC types of things. If you take
 the time to write an SBIR there really is a LOT of start-up money there.
 (But you must have a good idea). We provide a copy of AI Expert and the
 Internet Numbers to every investor that contacts us so they can effectively
 evaluate the potentials. Most of our work with investors is in EDUCATING
 them about the difference between hype and technical posssibility AND real
 potential which THEY can bring to light if they want to finance the craft
 against contracted milestones of achievement. We always offer to return all
 their money if we don't do what we say we can. It has been a good offer.