Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

Is it a good timing to raise fund when the product is under development?

The developer team has been briefed. And they are about to kick off the work. We are considering funding for hiring and marketing so that the business could be launched quickly when the product is ready. What type of resources would you suggest? Any recommendations are welcomed.

13 Replies

Joe Albano, PhD
3
0
Joe Albano, PhD Advisor
Using the business of entrepreneurialism to turn ideas into products and products into sustainable businesses.
I'm going to assume that you have identified and tested the market before building the product and that your question is about raising funds to scale up.

This would be a good time to build some financial models based on different adoption/demand rates, price sensitivity, and competitive landscape/response. You might also include production, distribution, and other operating and capital costs

... this scenario planning should give you some indication of how much funding you need and when you will need it. Remember that it usually takes longer to secure funds than you anticipate (regardless of the "intent" signaled by prospective investors) and that your employees, suppliers, etc. will only work "on credit" for a VERY limited amount of time.

Bottom line: if your business is poised for growth you will need funds faster than you think you will. Have a fundraising/investment strategy and a spending plan.
Chaim Sajnovsky
0
0
Chaim Sajnovsky Entrepreneur
owner at b7dev.com
you will need some kind of prototype or such working in order to raise money..maybe need to wait a little more.
James Michels
0
0
James Michels Entrepreneur
Founder at Present Future, Inc.
You'll get better terms if you have an MVP with even a small number of real users. You can address some of the bigger development risks early, get a feedback loop going, and prove that at least *some* users value the product. Common mistake to go too far down the design / build path before confirming that the value prop is apparent to the market.

Agree with Joe's comments re modeling - indisputable value there. But,before you've got users,models should be taken with a big grain of salt.

Also, safe bet that the MVP (alpha, beta, whatever) will require more time and or money than your pre-development estimates. As the MVP becomes a real thing, the "must have" feature list tends to grow.


Sakthi Saravanan
0
0
Sakthi Saravanan Entrepreneur • Advisor
Marketing, Products & Business Development
Focus your energies in getting the product right and in getting the first few customers. Hit the road to raise funds after that..
Michael Meinberg
0
0
Michael Meinberg Entrepreneur
Teacher (iOS Development) at The Mobile Makers Academy (A Hack Reactor School)
Almost impossible to get funding for pre-MVP development. As James, Chaim, and Sakthi said, most investors want an MVP that in the hands of at a least a few customers before they will give you anything. Your best bet for funding now is the three FFF's: Friends, Family, and Fools...


Michael Brill
5
0
Michael Brill Entrepreneur
Technology startup exec focused on AI-driven products
A bit of a contrarian view, but I'd recommend going out and trying to raise money right now. You may not make much progress on money, but you'll get a ton of experience pitching investors, get valuable feedback and, importantly, be able to go back to them in a few months with the progress you've made since your initial visit. Maybe you find an advisor through the process... but you certainly get a lot smarter.

If you can get people to talk to you and you have the bandwidth, do it.
Elise Krentzel
5
0
Elise Krentzel Entrepreneur • Advisor
CEO & Chief Creative Officer at ek Consulting, Author
I agree with Michael. I have a startup right now and the product will have to be tested again and again. Some say to wait for seed capitol. I'm not going to since we know our market, segment and have testimonials from engineers who say our product is feasible. So the key here is market + manufacturing. If you have your marketing down and research to back it up and a process that is actually doable then go for funding now.
In a previous incarnation I raised over $1M for a product we hadn't yet developed. It's doable!
Joe Albano, PhD
2
1
Joe Albano, PhD Advisor
Using the business of entrepreneurialism to turn ideas into products and products into sustainable businesses.
Thanks to Michael and Elise for their comments. Although many investors will not be willing to invest in your product at this stage, getting a product to market is expensive. Different investors will invest in different markets at different times.

For example, consider the pharmaceutical industry. The whole concept of MVP doesn't really apply ... the value to investors is different. I suspect that you're not inpharmaceuticals, and that's not the point.

The point is that as a founder/CEO/leader, your job ... your primary responsibility is to make sure that all of the resources necessary to build your idea into a product and your product into a business. Yes, you can depend on the kindness of strangers and the 3Fs ... or you can hit the streets and find alignment with the right investors.
Jennifer Ernst
4
0
Jennifer Ernst Entrepreneur • Advisor
Marketing | Business Development for early-stage, high-growth tech
I tend to agree with Michael Brill. You may not get funding, but you get on the radar. Most investors I've seen like to see the company make progress, particularly if they don't know / know of the principals, even if only over a few months. When raising larger amounts 6 months of observation aren't unusual.
Aiborlang Andrew Chyne
0
1
Aiborlang Andrew Chyne Entrepreneur
Bass Guitarist at Klevoans
Funding is not a good sign at this stage. Develop first your product till it reaches a stage of revenue generation. If you feel that the revenue generated is sustainable, then you are on the right track for getting funding. Investors would be more glad to invest in a product that has shown result rather than an idea-stage product. The era of idea-stage funding is no longer present in today's world. It sounds rude but it is a fact.
Good luck.
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?