Escape the Startup Paradox 😬 MVP Without Venture Capital
ฝัง
- เผยแพร่เมื่อ 18 มิ.ย. 2024
- Escape the Startup Paradox 😬 MVP Without Venture Capital
Can’t Build Your Product Without Funding
But Can’t Get Funding Without a Product
In the newest episode of Feel the Boot, we're diving headfirst into the world of product development sans angel investment.
I provide strategies for startups to navigate the challenges of raising funding pre-MVP.
Consider the paradox that most startups face: they need money to build their product, but struggle to obtain funding without a product.
I lay out three strategies to overcome this challenge.
The first is to build a cheaper version of the product by using off-the-shelf tools and proving its success.
The second strategy is to validate the business by conducting interviews, surveys, and gathering evidence of customer interest.
The third strategy is to explore alternative funding sources beyond traditional equity investors like: friends and family, grants, partnerships, or bootstrapping.
By following one or more of these strategies, you can find alternative ways to build your minimum viable product (MVP), enabling you to progress towards your business objectives.
Read this as an article: ftb.bz/94B
Listen to the Podcast: ftb.bz/Podcast
Subscribe to Boot Prints: ftb.bz/Join
Get Advice for Your Startup: ftb.bz/Advising
0:00 Introduction
1:16 Strategies for Cutting through the Funding Paradox
2:11 Building Cheap
3:08 Frankenstein
4:29 Faking It
7:06 Compensating with Validation
14:36 Alternative Funding Sources
15:27 Friends and Family
16:13 Debt
17:13 Grants
18:13 Partnerships
21:03 Bootstrapping Your Business
Lance Cottrell has been an active startup advisor and startup mentor for over a decade.
He has helped countless startups navigate the key decisions of their journey, like when to take venture capital investment and negotiating term sheets.
He works with many companies in accelerators like Y Combinator and Founder Institute.
He provides help with startup funding including raising venture capital and angel investment.
He can help you achieve liquidity for your company at a high valuation.
Feel the Boot is a startup vlog of tips and advice for early-stage founders. - แนวปฏิบัติและการใช้ชีวิต
❓If you have resolved this paradox for your startup, how did you do it?
From this video I learned that it is better for me to bootstrap my way to success, before I look for Angel Investors. Thankyou Lance for the great videos.
SphereMotor, the future of electricity.
I almost always suggest that founders wait as long as possible before taking investment (if ever)!
I just scheduled my free 15 min meeting for Sept 21st.
Had zoom meeting with a start-up/funding advisor company yesterday, they value the package around 45k, but they'll give it to me for 10k. Seems well worth it but still undecided.
When I can afford to do so I will schedule a 1hr paid call with you.
Because you're on here giving free advice so its only right to pay for a call. Plus it's good to get other opinions.
I look forward to talking with you. There are a lot of shady folks offering to help with funding. Make sure you talk to the founders of other companies they have helped recently.
@FeeltheBoot ok yes that sounds like a good idea, thanks agian
Just watched the rest of this video, now I know what to ask for when I talk to these agencies or organizations so I am able to do consumer validation. And with 50k there will be plenty of money left over to do a decent size production run. Thank You, really appreciated.
Glad it was helpful!
Thanks for all the great insight!
My pleasure!
Fantastic information, really useful, thank you.
Glad it was helpful!
I'm in this boat right now, but I haven't tried to raise any money yet (working on the pitch deck). It's a SaaS solution... I'm bringing some developers on for equity only right now, but funding would sure speed it up.
How are you planning to navigate the paradox?
@@FeeltheBoot I have a technical co-founder who can do some of the development and we are bringing on 3 developers for equity only to get the product built. The frustrating thing is that with a small investment ($50-100k) we could get this built in a few months by utilizing some developers off shore (direct hire, not outsource).
You might look at debt options. In Northern California, I have seen a few companies get $50k from Working Solutions www.workingsolutions.org/ to get them over that hump. There are Community Development Financial Institutions (CDFI) in most areas of the US.
When you talk about Frankenstein prototypes... would you recommend cobbbling together parts from various different products to make prototypes to pitch a product idea to investors?
I would do whatever it takes, as long as it shows what your solution will do and that it is possible.
In many cases, that involves things like Google Forms, IFTTT, and the like. It just has to deliver the core value to the users.
What if your product requires initial (once and done) govt regulation/registration prior GTM and generating revenue? It's consumer good, so building waitlist/presales would be a HUGE factor in obtaining pre seed right, or at least is a positive contributing factor?
Exactly! If you can't get through the regulatory approvals without funding, then pre-sales or waitlists are a fantastic way of demonstrating demand in advance. Pre-sales would fully count as sales (maybe even more because they will have to wait for the benefit).
From this video I learned that it is better for me to bootstrap my way to success, before I look for Angel Investors. Thankyou Lance for the great videos.
SphereMotor, the future of electricity.