Video Venture Capital in Detroit, Among Other Places (Video) 36
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If you have a startup idea kicking around in your head, you don't necessarily need to head for California, New York or Massachusetts to find venture capital. In today's video, Timothy Lord visits a venture capital firm called Detroit Venture Partners. (Yes, it's in Detroit.) This not an intimidating company, even though it has some big bucks and big names (including Magic Johnson) behind it. But this doesn't mean you need to rush to Detroit to fund your million-dollar idea. There are lots of local venture capital companies in the U.S. -- and chances are, wherever you are, there's one near you that's panting to invest in your can't-miss business opportunity.
Be careful (Score:5, Interesting)
My experience is that a lot of supposed venture capital firms (particularly those that deal with economic development zones and distressed areas) are little more than scammers who live on government funding and/or ponzi-scheme style investments and use most of it to pay very high salaries to their staff. So if you're actually looking for venture capital be careful who you deal with. If their senior staff are all driving new Mercedes, while the portfolio of ventures they've funded is surprisingly slim, you might want to look elsewhere.
Not saying that is the case with the specific firm mentioned in this story. I'm just saying be careful who you deal with. The same also goes for non-profits, and anyone who wants to "pay cash for your inventions." There are plenty of reputable investors out there, but plenty of scammers too. And when you're desperate for funding for your big idea, it can be tempting to fall for the latter. Don't let your dream turn you into a mark.