What’s wrong with this idea? My answer below. First, the idea, as posted at Startup Meme:
If you think your developer skills are waiting to be brought out to the world but funding stops their creation, worry no more. Consulting firm Herman Blackbook has initiated a mini fund for such developers. The funds that can sum up to $3,000 will be given to those developers who create apps on the Twitter, AppNexus, Trulia and iPhone platforms (others as well). The New Platform Fund investments will only be given to the ten most brilliant ideas. There are many other fund providers who invest in a range from thousands to millions of dollars, and another one joining the group would be an added benefit. If your app hasn’t been considered worth money, give The New Platform Fund a try too.
What’s wrong with the idea? I hope it’s obvious to you. Investors are partners and also bosses at times, extra voices, extra management. That might be well worth it when you need hundreds of thousands or millions of dollars, particularly if you hook up with good partners, who add value.
And, disclosure, for all I know, Herman Blackbook Consulting is such a good partner. But still, God bless the child that’s got it’s own.
Here’s what TechCrunch says about that:
Let’s be honest. There is very little reason for an entrepreneur/developer to apply for the New Platforms Fund. Incubator micro-funds like Y Combinator
, TechStars
Subscribe via RSS
{ 2 comments… read them below or add one }
Wow, I wanted to get into the iPhone App business by providing funding to small developers (10k-25k) per project.
But from the sound of your comments, you’d recommend an App builder not take the funding or partnering. Am I understanding your thoughts properly?
It is clear the future is iPhone Apps.
Doug, yes, you are understanding my thoughts pretty well, but there is an amount variable that makes a difference. I certainly would not recommend an app builder take on a partner for an amount as small as $10-$25K. The reason is that the amount in that case isn’t large enough to justify having a business partner. An investor should be a partner, and should be chosen as carefully as choosing a spouse.
For larger amounts, amounts that the app developer can’t raise and really needs, maybe the addition of a partner is necessary. Even then, it should be a decision to be weighed vary carefully. Compatibility is really important. As with a marriage, you have to live together — in a business sense — to make it work out.
For smaller amounts, like $10K or so, the app builder is better off to scrimp a bit, and keep full ownership. God bless the child that’s got its own.
Tim