How To Pay the Bills While Launching a Startup
Launching a startup is hard work. It takes time to build up the revenue to pay a living wage to the founders. So how does a founder pay the bills while launching a startup? Here’s one solution: Provide consulting and training services in the domain of the startup you are...
The Value of Regular Investor Updates
Founders who have raised funding should give their investors regular updates. Here’s the value of regular updates to the investor: It reminds the investor what you do and what progress you have made. This becomes useful later when the founder goes to raise the next round. It maintains the relationship...
Pre-Sell Your Product To Raise Funding
Startups raise funding outside of family and friends after they have a product with some revenue. Founders who have a track record of building and selling startups can raise on an idea. Everyone else must validate the business before investors will consider funding it. Pre-selling the product is one path...
Revenue First, Salaries Second
In launching a startup, the first goal is to generate revenue. Salaries come later and in some cases much later. Some founders look to the startup as a source of income. Fundraising from investors is not the answer to the salary question. Investors will not fund a startup that can’t...
Drawing Fundraising Skills From Other Areas
Fundraising requires a set of skills. Those skills can be found in other areas. Here’s a list of skills and where to find them: Sales. Fundraising is fundamentally a sales process. One can transfer selling skills to fundraising. Marketing. Fundraising requires the ability to reach out to the investors to...
Valid Reasons for Raising Funding
There are many valid reasons for raising funding. Here’s a list of reasons to consider for your fundraiser: The business is growing and is now ready to scale. It can be hard to bootstrap a scaling effort. There’s a clear need for a minimum viable product to establish the product...
Why Do Some Startups Raise Funding Quickly?
Some startups seem to raise funding quickly and with great ease. The press coverage of startups often leads the reader to believe that the round closed in a short amount of time. In most cases, the startup spent substantial time planning and then campaigning to raise the funding. It appeared...
Raising Funding To Be a Unicorn
Raising funding for a unicorn seems like a mystical art. The funding rounds are outsized compared to the norm. Here are the key components to raising funding to be a unicorn: The team has exits. If your team doesn’t have a history of successful startups, then build out your team...
Key Components of a Fundraising Strategy
Before launching a fundraiser, the founder should first develop a fundraising strategy. This is the plan for how to prepare and then launch a fundraiser campaign. Here are the key components of a fundraising strategy: Identify the problem to solve and ensure it is a substantial problem that will attract...
How To Raise Funding for an Idea
Startup investors look for revenue traction and momentum in the deal. Those with an idea only can struggle to raise funding, but it can be done. Here are some key points to consider: Focus on the team, the problem, and the size of the market. Show the strength of the...
