Will VCs Invest In Pornography?
 

Found this and thought I'd share it...


Our company has specialized in some rather taboo areas--particularly online gambling and adult entertainment. We've proved ourselves to be very successful in both areas, but many investors won't give us the time of day based on the content we deal with. How can we get investors to listen long enough so that we can prove our merits and get the money we need to expand?

It's not a matter of "proving your merits." You could have a P&L statement that's better than Microsoft's (nasdaq: MSFT - news - people ) and still be unappealing because of your market segments. Understand that many VCs' funds come from pension funds, government entities and schools. These entities do not want to invest, however indirectly, in gambling and pornography.

Source: http://www.forbes.com/columnists/200...fthestart.html

the Viet Cong don't go by that anymore, just say Vietnamese.

:thumbsup

rofl.. I doubt most venture capitalists are interested in porn. Hard to bring a porn company public and cash out.

lol. i need a venture capitalist to fund my "i need to buy a card" business..

Don't pay any attention to what Guy Kawasaki has to say. He's an idiot! There is more money looking for investment then investments looking for money. Investors know Sex Sells!

I run a small VC group and have done adult before online and offline

Great topic - I know that many VC's are unhappy that they can't participate in the largest biz on the web.

The fact is that adult biz's are highly cash generative and if you are looking to purchase an established adult online they trade at a fraction of the mutliples of other biz's (6 - 12 months profit for a small site).

It would be a great idea for a new VC - I'll kick in 50 bucks in start-up capital...

I had a VC who was basically begging to invest in me almost four years ago before I even had a paysite and was giving out free pics in Yahoo. The dude must have recognized my talent. I turned him down though. I don't like sharing the pie.

Yes they will fund an adult entertainment business as long as they see a well structured business plan, principals that have solid experience and a proven track record, a good investment opportunity on the table, and when they see a charismatic CEO with a a lot of enthusiasm for the venture.

I'm sure some will. Adult is profitable, and profits are good.

It depends on the fundamentals of the opportunity and on the firm.

If there are morals restrictions or image sensitive investors --such as pension funds or schools-- forget about it.

i would think smaller vc firms and angel funds would be more likely to invest in adult.

if you're looking for a vc firm hire a good private equity broker to find a good match.

Problem is not many good people that have ideas and talent, and then they have to listen to people who have been around the block and not talk shit they think.

I invest all the time, but 99% of th people will stay working for burger king because they are flat out stupid fucks.

Good luck

You're one of the smartest business minds here EB.

:thumbsup

Here's a few links might be of use:

http://www.click4loans.com/HTML/website.html

http://www.thefilmlaw.com/

Lewis Horwitz Organization
1840 Century Park East, Ste. 1000
Los Angeles, CA 90067
Phone: (310) 275-7171
Fax: (310) 275-8055


http://www.marklitwak.com/

EB--I have raised a lot of VC funds in the mainstream and was thinking of starting an angel fund for adult. Would you be open to chatting more about your experiences? I'd love to pick your brain...

thx Edge
173121828

where are you located hanging judge?

Los Angeles