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Ask HN: How to Pitch Startup that purchases land and builds

2 points by anm89 ↗ HN
I've got a startup that a friend and I are interested in pursuing in the international hospitality space. A core part of this idea involves purchasing land and doing physical building construction, In this case in Colombia.

We really believe in this idea and are willing to put a substantial chunk of our own savings behind it, about 750k, but we still need to raise another $1.5 million.

I feel like this does not check a lot of the boxes of what a VC firm would want. We believe that this is an awesome investment compared to let's say buying the S&P but in reality it's probably never going to be a billion dollar company.

Any thoughts on how to approach fund raising for something that involves a substantial investment in physical assets and a lower risk, lower reward profile than the moonshots VCs are looking for?

4 comments

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missedthecue
If you already have $750k and you're developing real estate, talk to a banker.
anm89
The international piece makes this a lot harder. Also rates on Colombia for this kind of stuff are 10% plus.
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trcarney
You may have to take the "field of dreams" approach to this. "If you build it they (the investors) will come." You might need to borrow the money, even at the high rate to build the place, then get investors on board after the property is built. I would think it would be easier to get someone to give you money if you can show them a physical property.

You could also build out part of the property, then get the investors to help you finish it.