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Great question. Someone asked me about funding last night at the HN Chicago meetup. In all honesty, I haven't thought a whole lot about it. I reached out to
by brandnewlow 17y ago
Great question. Someone asked me about funding last night at the HN Chicago meetup.
In all honesty, I haven't thought a whole lot about it. I reached out to alumni entrepreneurs from my university when I was starting Windy Citizen to get advice. One of them, a guy who works in VC in the energy field, pointed out that I had no clue what I was doing, so:
a) Evaluating a technical partner would be extremely difficult.
b) Evaluating potential angel investors would be just as hard.
He offered to give me a call every Sunday for a year for advice and moral support if I promised to go it alone for one year, build my own tech (tricky considering I'm a decent designer but not a backend guy), and not take any money from anyone.
That first year was miserable as I iterated through a few versions of the product and lived on about $10k that I earned from freelance writing and design gigs. The first idea was to build a big blog network for Chicago. I found about 20 writers, but ran into two big problems:
1. Drupal's content creation forms are not suitable for non-technical users or people without special training. They have some WYSIWYG add-ons, but they're frankly terrible compared to Wordpress/Squarespace/MT. This meant I had to post up most of the blog posts myself and my writers were always frustrated and demoralized. On my end, I lacked the skills to build a good writing UI or the funds to hire someone to do it for me.
2. With my time swallowed up by posting and editing stories, I had no time to even worry about ad sales or recruit new writers. I think a local blog network could work really well...if you had 2-3 guys. As a solo project, no dice.
So 9 months in, I switched to letting anyone join up and share links to their favorite local news, blogs, and events. We've been doing that for the last 14 months. Midway through that, I picked up someone to handle ad-sales on commission with some opportunity to earn equity in the business. Together we've reached a healthy "ramen profitablity" position and are having a lot of fun.
4 months ago, I scored a $35k grant from the Chicago Community Trust to invest in our tech. We've spent a bit of it on performance improvements and are looking to spend a bit more on FB/Twitter integration (if you're good at that stuff, drop me a line!).
So I've been pursuing the slow growth strategy. All bootstrap so far. I believe we're very close to "cracking the code" for doing this sort of thing which then could change things a bit, but in the meantime we're working on incremental improvements to our sales strategy and product.
- nkh 17y agoCould you elaborate more on the process of getting the grant? That is an avenue of funding I would love to hear more about. Please don't give away any information that might hurt you or that you would be uncomfortable sharing.
- brandnewlow 17y agoI wish there was some magic to it. I've only applied for stuff that was aimed at supporting new news-related ideas. So far I've applied for 7 grants and won one of them. I have two applications in the hopper right now but both are longshots. For this grant in particular, the Chicago Community Trust announced it had $500,000 and wanted to give it to Chicago-based, Chicago-focused, news-oriented projects. About 70 people applied and they gave money to 12 applicants. I received a little less than half of what I requested but am extremely grateful and excited to have some cash to play with. Considering the criteria, I probably would have done something drastic had I not made the cut for that one... :)
- tbrooks 17y agoHow do you hear about these grants? Are there any sites that specifically focus on available grants?
- deleted 17y ago[deleted]
- brandnewlow 17y agoHere's a great example of how our users feel about Windy Citizen: http://www.windycitizen.com/chicago/media/2010/02/25/windy-citizen-named-one-of-chicagos-40-new-essentials-by-time-out-chicago#comment-21317 http://www.windycitizen.com/chicago/media/2010/02/25/windy-c... <blockquote>The nice thing about Windy Citizen is that is embraces a diversity of views -- even allowing stray libertarians and organic conservatives on board -- along with the usual multitude of bloviating Chicago nanny state enthusiasts. I just wish that WC could get someone to work out all of the computer programming glitches.</blockquote>
- 17y ago