John Bonaccorso, founder of 9thX.com, discusses the different financing options they considered when founding the business. They chose to pursue financing from friends and family, one of the hardest things he had ever done.
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John Bonaccorso, founder of 9thX.com, has a long history raising money for ventures. Twelve years ago he raised $1 MM from Apple computer, and in 2000, he raised $4 MM in venture capital financing for another entity. However, for 9thX.com, he and his partners decided to go the friends and family route. He put up his house and asked his family members if they had any extra cash to invest, one of the hardest things he has ever done. He offers the following observations:
- As mentioned by Charlie Penner of SBTDC in a previous segment, you must put your own money in the business, so others will take you seriously.
- The main value in attending meetings of angel investor groups is to make contact with individual angels who might invest. The groups themselves do so much more rarely.
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