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My cofounder and I just quit our jobs to start working full-time on our product. We have no taken on any investments yet. We closed our first customer while bot
by sarora27 7y ago
My cofounder and I just quit our jobs to start working full-time on our product. We have no taken on any investments yet. We closed our first customer while both working full-time jobs and have been building enough pipeline to have a clear path to covering our expenses over the next 6 months.
We have been very deliberate about not courting investors yet because we want to ensure we have something people would want to actually invest in before we start the whole fundraising process.
We have gone down the route of trying to pitch the vision to investors while trying to find customers and found the whole experience to be distracting and a bit of a fools errand for first time founders.
My biggest takeaway from the experience was the growth trumps all. Investors want to invest in companies that have a very clear path to growth ($x in = $10x out) in markets that will grow into the future. They are also more enticed if it seems like their personal interactions will be the key differentiator in the success or failure of a business.
If your goal is go full-time on your product, I would recommend trying to close as many customers as you would need to ensure both you and your cofounder can cover your monthly expenses. Once you get to this point, thinking about how to raise money (and more importantly WHAT you will do with it after you have it) becomes more relevant.