With this concept of airline operation with our own aircraft, our own maintainance and our own pilots will enable us to put up a very profitable low cost airlines. For the initial period of five years we will manage with leased out aircraft. During this time we will bring our aircraft industry to the level of producing the aircraft required by our airlines. These will be 30-50 seater aircraft required in the feeder lines in India. We will then look at the world market for our aircraft and expand our airline operation in India and over seas.

Initial investment spread over 10 years is $ one billion (USD).

Expected return spread over 20 years is $5 to $6 billion (USD).

We have only the idea and nothing else. We are a group of aeronautical engineers currently working in an aircraft project. We are looking for a venture capital association which can evaluate our idea, (if found suitable), help us convert to a business plan, provide the required finance and other ancilliary support to make it a success. 

 

Raghu

Or find a business that you can start without such a huge upfront cash need.  A start up airline/cargo carrier/airplane manufacturer/pilot school/plane maintenance business?  Look, I'm for channel integration as much as the next smart-alecky/anonymous/free/online advice giver...but c'mon!  You need to be introduced to reality. 

Unless you and your aeronautical engineer comrades have incredible backgrounds, proven track records of entrepreneurial success, and a killer design for this airplane, don't waste your time trying to find capital for this idea.  This is a massive undertaking.  A billion dollars!  OK, OK, you are "only" asking for $100 million per year, but that's still an enormous amount of cash.

Reading the last sentence of your query makes it sound as if you simply want a job, but with enormous upside potential of being a business owner.  After all, you are asking to VC to provide the capital, write the business plan, and provide all the other things that are needed to make a venture a successful business.  So what are you planning to do?  Sit back and count the pile of money that you made as a result of other people taking all the risk and doing the vast majority of the work?

I hate to be harsh, but I can't sugarcoat it.  You are being silly.

As far as I can tell, you simply want to design the plane.  Who's going to run the company?  Who will lead the sales & marketing efforts?  Who will handle logistics?  Ticketing?  Human resources?  Legal?  Accounting and finance?  Are you and your team the people to do these jobs (and many more), or are you expecting other, more experienced business leaders, to perform these tasks?

All you've carved out for yourself in this model is a relatively small job of product design.  You're going to be nothing more than an employee in this venture.  Other people will own the vast majority of stock. You'll be lucky to have a fraction of a percent of the equity in this deal.  Since you're looking at being little more than an employee, why waste your time putting a plan together and trying to convince investors to hire you?  Find a job, or if you're already employed, stay there! 

But if you truly want to be an entrepreneur, find a business you can enter with little or no upfront cash.  Find customers first.  Focus on sales first, raising capital second.  The fact that you are an engineer gives you a leg up on many wannabe entrepreneurs.  But instead of teaming up with other engineers -- this provides little more than a redundant skill set for your enterprise -- maybe you should find some partners who compliment your skillset.  Find a sales person, an accounting/finance person, a legal expert, etc.

But above all, find a business model that does not require such a huge outlay of other people's money. 

Dr. VC
_____________________________________________________________________________________
Cynicism is not an end, but a means to reach objectivity.

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ERIC STRAATSMA MS
MILI Group Inc.
Creating & Protecting Wealth
2033 Howe Ave Suite 160
Sacramento CA 95825
Office 916-286-7930
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