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Ask HN: How Would You Fund-Raise for your Startup without vast personal network?
This issue comes up times and times again: brilliant founder comes up with revolutionary idea. Yet she doesn't know where to find financing to turn this idea into a business. What advice can you share?
- chrisco255 8y agoIdeas are only worth slightly more than zero. You need to prove out your hypothesis (that the market even values your idea, or the execution of your idea) first, before you go to investors...generally. The only way around that (usually) is that you have such a reputation of success that people are willing to take a chance on your unproven idea. But it doesn't take a runaway success of a product, to be able to raise money. You can build a prototype, get sign ups with a landing page, use crowdfunding to raise funds and pre-sell a physical product, etc. Or if it's a SaaS product, even as few as a dozen customers and a strong target market can be enough to go raise money through angels/accelerators in Silicon Valley or other tech hubs.
- hluska 8y agoI'm not trying to be argumentative, but I would work on building a vast personal network. As you go from idea to product to business, you'll reach many points where you need a network, or at least the skills to go out, meet someone and get them to help you. I'd start building those skills and a network while I'm fundraising.
- Kagerjay 8y agoFirst question I would ask is what kind of business is it, and whether fundraising is necessary. Many times, the answer it is not if you have technical proficiency and/or can gain it on your own, and what your timelines and visions are. Pick 2 of 3 - build it cheap, build it good, or build it expensive. I don't know which ones this "revolutionary idea" falls under, most ideas are worthless anyways including all the shitty ones I have had. Its all pure execution. I would seek out your local startup / tech incubator and tech meetups in your area as a starting point. Both for building a personal network of people you can rely on. I have lots of fantastic developers I talk to in my city's dev channel, some being among the best in the industry as well. I say hello to the owner of my city's biggest tech incubator, the mayor is a good friend of mine too from nonprofit work I've done. I had a nonexisting network about a few months ago, but show your face enough times people will remember who you are. You can build a prototype without any technical proficiency. There's lots of off the shelf tools you can just throw wordpress/airtable/zapier/kickstarter etc at it, and see how far you get.
- splatzone 8y agoGreat thoughts here, thanks for sharing. Shouldn’t it be pick two of: build it cheap, build it good or build it fast? Why would anyone choose good and expensive over good and cheap?
- nerdwaller 8y agoI think the gist is meant: > Fast + Cheap = Low Quality > Good + Fast = Expensive > Cheap + Good = Slow to market
- Kagerjay 8y agoyeah that's what I meant, got the wording mixed up
- mrShiningWizard 8y agoGreat advice, thank you
- dnautics 8y agoMy approach: Build a personal network. I went to work for a startup, and delivered engineering goals on time. Now the CEO thinks I'm the only competent developer on staff. Will let you know how it goes.
- EGreg 8y agoMy answer: Launch a company in a jurisdiction that allows issuing utility tokens (not USA) Then get them listed on an exchange or sell them Use the money to build the stuff Also pay people in the tokens themselves The latter thing can be done legally with equity in the USA. Look up the book “Slicing Pie” My #1 advice to first time entrepreneurs is DONT BE AFRAID TO DILUTE YOUR EQUITY ENOUGH TO GET THE BEST PEOPLE ON BOARD AND MOTIVATED TO TAKE INITIATIVE EVERY DAY/WEEK TO HELP YOU.
- danieltillett 8y agoIt is not a revolutionary idea unless you can fund it, it is just another worthless idea.