This was a common business model during the first dotcom boom. And it led to a lot of people losing their shirts.
If and when I decide to raise money for an Australian dotcom, I will actually go to Perth first. The city is flush with mining money and has a large pool of investors used to investing in mining exploration -- probably the business most like tech startups in life cycle.
Mining money isn't a good fit for dotcoms, I've seen it first hand, as an employee of a startup with investors there (WA). These guys get edgy in businesses they don't understand, and IT is a long way from digging shit up and selling it to the Chinese. You want savvy investors who move in the right circles, not just ones with fat bank accounts and no clue how to turn a PC on.
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This was a common business model during the first dotcom boom. And it led to a lot of people losing their shirts.
If and when I decide to raise money for an Australian dotcom, I will actually go to Perth first. The city is flush with mining money and has a large pool of investors used to investing in mining exploration -- probably the business most like tech startups in life cycle.
Mining money isn't a good fit for dotcoms, I've seen it first hand, as an employee of a startup with investors there (WA). These guys get edgy in businesses they don't understand, and IT is a long way from digging shit up and selling it to the Chinese. You want savvy investors who move in the right circles, not just ones with fat bank accounts and no clue how to turn a PC on.
Maybe I need to rethink it then. It just struck me as a similar risk profile and lifecycle.