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How to secure funding for startup?

If you're an investor advising me here, please do ping me separately if you are interested in hearing my pitch.

All my career, I have been coming up with ideas with no funding to test it. I am not taking a credit for it, but I had Groupon idea few years before they came out. Groupon's founders did good and I am happy for them. I had more ideas similar to this which i kept passing because I wasn't passionate about them.

Since late 2014 I have been sitting on the idea that would simplify and standardizing the flow of financial information for the investor community. This product would improve planning and analysis for both startups and VC community. Imagine answers to your financial questions on tip of your finger. Simply priceless!!

I am passionate about this idea and the market is there. This product will be utilize by pre- and post-funded startups and investors.

How do I raise money for my startup before creating the product and securing 1st customer? Specially, when this is my 1st startup.

84 Replies

Lane Campbell
13
0
Lane Campbell Advisor
Lifelong Entrepreneur
If your idea is that strong but you don't have the network of investors to solicit then forget raising money. It's a waste of time to do that without a prototype or MVP of some kind. Instead of soliciting investment I'd recommend you go out and network to recruit a co-founder who can build the product. If the idea can stand on it's own then it should attract other great people around it. Once it's built you can try and raise money, or even better, you can just sell it and keep ownership in your pocket.
David Jaeger
4
0
David Jaeger Entrepreneur
✪ SEM/PPC Guru ✪ eCommerce Growth Hacker ✪ Online Business Consultant ✪ $25 Million/Yr Managed Ad Spend
The investment world is brutal. Investors don't just give away money. They are all over their money and the founders. No track record = bad or no deal.

Get a cofounder, go to hackathons, get an MVP as Lane said, before expecting to get funded.
Gabor Nagy
6
0
Gabor Nagy Entrepreneur
Founder / Chief architect at Skyline Robotics
Today's investors essentially won't fund you until you don't need funding. They'll consider investing in your company once you have a product, clients and revenue.
At which point, you don't need and should not want funding...

I wrote an article about this:
https://www.linkedin.com/pulse/investors-window-why-would-i-want-your-capital-once-gabor-nagy

Ema Chuku
4
0
Ema Chuku Entrepreneur
Designer. Product Developer. Founder @ NuPad
This is 2016, not 2011. You have a better chance at seeing a hen grow a teeth than seeing an investor give money to a startup with no MVP.... Find a way to develop an MVP and go live.

In between, could it be because you are so focused on investment funding with no product be the reason why you have so many undeveloped ideas?
Faisal Memon
5
0
Faisal Memon Entrepreneur
iOS Department Technical Lead at Citrix ShareFile Quick Edit
I'd like to make a remark on your presentation on the problem, but I hope you're not offended because I do so with a constructive intention.

Your presentation of the problem references "I" not "we". Its collaboration that is key to getting something off the ground because everyone in regular employment will have an extra amount of labour and some small money available to progress a speculative venture before income is available from it.

Also, by bringing in others, you are testing your basic entrepreneurial skills -- creating and sharing a vision and getting people bought into it. You should be able to raise 20k USD by yourself from friends and family easily.

Sharing is also a sanity check. Defending your idea enhances your understanding of the problem space, and is good grounding for when you face professional investors.

It's emotionally easy to go for investors first, not family because if it fails, there is no blowback to your inner circle. However, that would happen anyway as your focus on the business will mean less time and attention to friends/family.

My last point is it appears there is a contradiction in your presentation of the problem because if you knew the VC problem space dynamic, you'd also know about how to raise initial money. Since you're asking after that, it can't be that you understand the problem space. I don't mean that to be a harsh statement, but doesn't it follow logically?

Once you had you 20k USD from friends/family, you'd seek a co-working relationship with a cofounder to build a MVP, then talk to other entrepreneurs to ask for a recommendation from their angel investor for an introduction to their angel or others. That initial seed series money would also come with the angel's contacts in the VC industry where you could position for some Series A money.

I get the sense you do have good ideas, and I hope that your directing them properly will result in good success for you. Please report back on how you get on!

Steve Owens
11
0
Steve Owens Entrepreneur • Advisor
Finish Line - A Better Way for Small Companies to Develop Products
Navneet, many people have great ideas. There is no scarcity of ideas. What is in short supply is the ability to execute on these ideas. There are very few people in the world that can take an idea and turn it into a business.
Royce Gomez
2
3
Royce Gomez Entrepreneur
Executive Director at Peak Startup
Create a pitch deck and executive summary. Both have examples and explanations online if you are unfamiliar. Also, I write executive summaries if you need help.
Martin Omansky
11
0
Martin Omansky Entrepreneur
Independent Venture Capital & Private Equity Professional
I represent 4 groups of angel investors. We do many start-ups. Here are some observations: (1) many investors and many more ideas - therefore odds are not in your favor; (2) our groups are biased in favor of projects that cannot be easily reverse engineered; (3) best start-up advice: find one credit-worthy individual who trusts you and has a good grasp of your technology and/or industry. Assemble a small kitty - say $25K - and purchase legal and accounting services; (3) find an adviser who can help you devise a cogent business plan; (4) use the document to solicit equity contributions from people you know or can easily network with. General comment: there is a great deal of content and detail necessary - in terms of law, taxes, competition, strategy, fiduciary duty, etc. related to start-ups. This activity is not for the poor or the faint-hearted. Be aware that starting up a tech company is a profound intellectual challenge. I suggest you find an experienced mentor, pay him/her, and pay attention. Sent from my iPhone
Royce Gomez
0
2
Royce Gomez Entrepreneur
Executive Director at Peak Startup
Martin, very good and thorough advice to the young man.
Nofyah Shem Tov
3
0
Nofyah Shem Tov Entrepreneur
Founder BlogMyLunch
I really suggest looking up Lean startup models and working on that
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