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Dustin LindenSmith

father | musician | writer

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Just recovering now from a big drink tonight with some friends at home. Had a big feed too, which was fun but feels better now that it's over. Long cardio workout is what's scheduled for tomorrow, but it's damned late already so I expect I'll work out later in the day.

As usual, my thoughts of late are focused on our finances and on starting up my business. Things are progressing slowly but steadily with the business, and I'm moving a few critical items farther along their life cycles. Have had good conversations with two past business contacts in the past two weeks, at least one of which will likely move ahead with a project within the next 4-6 weeks. As soon as I make proper software licensing arrangements and Z goes on a daycare schedule of 4 days a week, I can ramp up my workload accordingly and get things moving. Still kinda wish I didn't have to do it at all, but I accept that it's my lot in life for the next little while and I'm ready to make the most of it.

Question: How do you obtain start-up financing when you have no cash? Is my understanding correct that banks, not considering themselves to be in the venture capital business, do not generally extend loans or credit to people who can't directly back up the amount borrowed with available cash or collateral? Can I get a parent to co-sign for a small business loan or a line of credit if I don't have enough collateral on hand?

Events churn along as they will. Not too much more to say about it, really.

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vyoma April 18th, 2003
This sounds about right on all counts. You can also try to get angel funding -- that is, get investment dollars from individual investors rather than institutional ones like banks. That can be a bit tricky, and you have to be careful about terms and understandings, and make sure that every detail is in writing. That's something that will be more incumbent upon you if you go that route.

When I started my business, I did everything with my own funds, so I never had any loans involved and it was all my own money across the boards. Outside the VC boom of California in the 90's, I've always wondered how people who don't have a lot to start with came up with the seed money to get a new business off the ground. Guess I'll learn more from your journal as you go.

chaizzilla April 18th, 2003
what's a big drink? you got plowed?

iamom April 23rd, 2003
Extremely plowed. Started with champagne, then moved on to wine, margaritas, rum and coke, and ended with a few scotches. It was a stellar night, all told. And I still got up with Z at 6:30 the next morning and even went for a run!

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