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Direct Sales: Where do we look for venture capital for a debt-free direct sales/party plan business that is expected to do 1 million in its first year (2014)?
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Tom Williams, Clarity's top expert on all things startup answered:

I agree with Ian. This is the kind of business that is unlikely to appeal to a VC. Private equity investors might be attracted to this at a much later stage of the business, but at the early-stage, this is a difficult business to fund with outside investment.

Your challenge, and really the challenge of any small business entrepreneur is that investors are going to look for a *significant* ownership stake in your business for a relatively small amount of capital. For something like this, it wouldn't be a surprise to see an investor ask for 30-50% for $50,000 to $100,000. If you really are confident that you can generate $1,000,000 in your first year (although most businesses in any sector don't), then I'd encourage you to find personal loans from friends and family that will provide you the needed cash.

Happy to talk to you in a call to explore your options in more detail

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