Startups Stack Exchange Archive

Getting Funding For Your Project

• posted by: Joseph Astrahan on 2015-12-28
• tagged: startup-costs, funding, investors, angel-investors, crowd-funding
• score: 3

I have a business idea that I believe will do really well. Instead of pitching the idea, I want to pitch the business side of it. This is what I think investors want to see. Let me know if I’m the right track.

• They want to see that I have customers already for my product (even if the product does not exist). For example, getting an AUTH on the credit cards of people interested in the idea ready to pay if I get the X amount of funding to finance said project.
• I have a proven strategy to get new customers for said product/service. The amount of money I spend on the advertising strategy + maintaining product/service is low enough that I take a significant profit margin. Lets say 30%+. This includes a financial projection based on these stats.
• The idea can scale and grow over time without my own time or effort through proper management techniques. For example, like how a franchise can expand through the concept of master franchisee’s which train your other franchisee’s in return for a percentage. This saves my time to focus on the business instead of the business day to day tasks.
• They want to see that I have put my own time and money into the idea to show commitment.

If I’m missing anything please let me know. If I were investing anyways I would want to see these factors… even more than the idea (whatever it may be).

Note: The advantage to traditional funding would be the expertise that could be provided by the investor and since my particular business idea is more targeted at business to business I’m not sure it would work in a crowd funded scenario, not sure what I could offer the average person. I have to think it out further. Traditional investors could also offer the capital I need then in this case to expand further, through advertising, hiring staff etc.

Answer 8389

• posted by: vpego on 2016-01-26
• score: 3

More than anything, they want to see the real product!

No need to be a fully completed and working version, but at least the MVP - Minimum Viable Product.

I can't stress this enough: NO ONE WILL EVER INVEST IN IDEAS ON POWER POINT.

No matter how good it is.

If you want more details on that subject, i.e.: How to get funding, please refer to other questions, like this one: Looking for true investors

So, what to do then if you have a really good idea?

I'd suggest you to do one of those two things:

1. Develop the product yourself (MVP)

2. Find a technical partner to develop it for you (you know: 50% equity, no salary)

Regardless of the option you choose, you'll have some homework to do.

P.S.: Don't put so much expectation on the quality of advise you would get from investors. Only a few percentage of them will really pay attention to your business (even if they have invested a huge amount of money on it).

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