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In my experience, investors love backing: - B2C startups with a large # of users (100k minimum with strong growth, ideally 500k-1M) if it's a digital product.
by skadamat 5y ago
In my experience, investors love backing:
- B2C startups with a large # of users (100k minimum with strong growth, ideally 500k-1M) if it's a digital product. Physical products are a different beast
- B2B startups with a small # of customers (200 sounds great!)
But if you're in the middle, it can be a challenge. For example, a to-do list tool with 200 users paying $10 a month isn't usually that interesting to VC's
Some options to consider!
- A startup incubator! Incubators like YC or MassChallenge or TechStars love taking on small teams of builders with initial traction. They take 5-10%, sure, but a good incubator can help coach and prepare you for the VC's
- Bootstrapping. There's an awesome thriving community of people over at https://www.indiehackers.com/ https://www.indiehackers.com/ (as well as other sites) building profitable businesses. If it's just the 2-3 of you, is there a path to profitability within a year?
- Can you pivot to B2B? B2C is fun but can be really really challenging (I spent 5 years building B2C software) because consumers rarely know what they want, have low budgets, and are incredibly fickle. Businesses are the opposite of all 3 (usually)