Home >> Stock Forums >> Investing in an invention or idea

Investing in an invention or idea

Livewire said: "Hey guys, I was wondering what you guys thought about investing in an invention or an Idea? More interested in the invention aspect. I guess I am wondering at what point do these become a serious option? because there are things out there that have serious potential and to get in at a ground level... the implications of it are astounding. Especially if it is something you understand and can see the need for or believe in?"

Airelon said: "Speculation of such venture capital is what scares off most people. The accuracy 'hit' rate, for a good idea is very low. It's just when a 'hit' is really made? The profits are beyond unbelievable. I wouldn't mind getting into it, if I had pockets deep enough. Which I don't. Successful Venture Capitalists can afford throw $8 million each, at multiple business startups."

Livewire said: "I see what you mean. There are 2 opportunities I am looking at right now and both look and sound great, one of them the research is thorough and from the people that have been consulted it looks very promising. (also this one is close to being complete from a patenting completion standpoint) The other is still in fairly early stages but again has huge potential, since it has a chance at turning into something that could be a government contract and be utilized in a military and civilian nature."

Livewire said: "anybody else ever done something like this before? or know someone who has?"

Heather said: "I can't say that I know anyone that has done this. I assume it has about the same risk in any investment might have. If it wins, you win big.. if not then you eat the loss. Have you made a decision?"

ratAphooey said: "Sounds way too risky unless you plan on managing the business full time. How can you trust the operations?"

Livewire said: "Yeah, I know what you mean... The first one looks very promising since it has already picked up investors, just a few spots left to fill. (its the one that is fairly close to being done from a patent standpoint.) The second one is still in the early stages from the same person, but looks to be huge from the concept stand point and looks like something you'll be seeing on TV someday on modern marvels... (bigger payout but requires a bigger investment and longer investment period) Still have a little time to think about it..."

ratAphooey said: "Keep in mind too even if the invention works it doesnt mean people buy it. The company still has to convince people the product is worth it."

Livewire said: "ok I got permission to post this info since the patent is close to being issued. the first one i mentioned is for a redesigned Cleats (baseball, football, soccer) pressure sensitive traction on demand and will reduce leg injuries through its design and functionality(torn acl, mcl, sprains fractures)... its amazingly simple and yet, there's nothing like it out on the market. what do you think?"

Betsy said: "modified cleats? sounds like something that could go either way. how much are they asking you to put in? have they talked to likely buyers to see if there is demand for it?"

Heather said: "How much is the investment? Do they have a marketing plan for them?"

Livewire said: "well they have a 3 stage plan: 1: production of prototype with 2 goals in mind (test the production costs and develop the different price points for different aspects of the shoe) 2: approach the major players in this industry including Nike, UnderArmour, Adidas/reebok 3: look into production of this shoe for the possibility of further investments groups to take this to market through the creation of a new shoe production company. as for a market for them, simply put, yes!!! anyone who plays high impact sports that utilizes cleats and Every single parent of a child who also participates in these sports, would be willing to spend up to 3 times of todays cleat prices for this new design simply because of the reduction in injuries and the added longevity this product provides as well. as for the incentives for this investment: all investors get profits for the lifetime of the shoe's licensing contracts. the figures for nike alone in 2004: sold 50,000,000 cleats world wide. And apparently this person also has plans for new basketball, crosstraining shoe that is also redesigned and proactively functional in increasing traction and reduction of injuries. (investors would automacially get an in for this shoe as well) as for the amount, They need 200,000.00 for the next 2 years at which point they would be ready to either sell the licensing rights or produce the shoe themselves directly. I have 1 spot reserved for me untill the end of april at which point I must decide if I want in or not..."

Heather said: "Sounds like an interesting product, Livewire. Let us know what you decide to do.."

Livewire said: "oh and let me clarify its 200,000 total investment not individual investment amount... so if 20 people jump in, it would be 10,000.00 each Initial offerings are 10,000= 1% of Net profits from licensing or sale of shoe..."

electronicsseller said: "sounds great ,i'm almost moved by the great profit .:laugh:"

pranith said: "Well according to me investing is an idea rather then an invention. Since, most of the people go for investing in order to make extra income."

Livewire said: "ahhh but heres the thing electronicseller, according to the numbers if it gets licensed for lets say just 1 dollar for each shoe sold at 50,000,000 shoes sold per year. that 1 percent of 50,000,000 = 500,000.00 not a bad return if it goes even slightly well, and that is a yearly possibility. And if it does what it looks like it will, chances are all cleats will go to this design because of the safety aspects. I decided to do it. 20 spots and 15 filled already. and its not even the end of april woot."