I have an app concept that I've discussed with enough friends, family and associates to feel confident that I'd be able to raise the 50-60K I believe I need for a decent MVP. My obstacle now is that I have no idea how to conduct a friends & family fundraising round from start to finish. Can anyone recommend a good book or other resource that walks me through it?
You don't need a good book. You need a good lawyer and a good advisor. Before you hire either make certain that you have a solid business plan and have an accurate idea what the MVP will cost.
The most important thing about a friends and family round is that they are not backing your idea...they may not even understand it. They are backing you. Show them why that belief is sound. Show them how you'll responsibly use their money, how you'll get and share the revenue. Make it clear to them that you know they are doing it because they cherish you and that they shouldn't suffer for doing so. One of the interesting "side-effects" of our Crowdfund Guarantee, which repays investors who back startups that fail, was how it helped entrepreneurs feel better about asking those they love for money. Knowing they had a way to ensure they couldn't lose helped them surmount the obstacle of getting the most important fund raising commitment you can get. If you don't have the support of people who know and care about you, what can you possibly expect from strangers?
Good for you. Get the lawyer asap.
Although I can't say much about the family fundraising process, what caught my attention is the estimated budget for the MVP around 50-60K. One piece of advice I can give is that maybe you can revisit your budget (30K) which will make the fundraising easier?
I'm an app developer myself and build most of my MVPs in a 15-25K budget. And for that you can get quite a lot (both iOS & Android support, native, custom UI, backend, etc). Not to mention that I'm not a low-cost developer, so could go cheaper , although with some extra risks.
I'm currently guiding few people on how to build their apps and I know they get quotes ranging from 5K - 60K for the same product. My observations are that the large price doesn't always guarantee the quality, but on the other hand low price almost always ends in pain :)
I love some of the responses... whatever the question, the answer is always "You need a good lawyer" ;-)
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The purpose of this message is to update you on the current state of Mealthy Inc. and how that effects you, as a Mealthy customer.
In 2020 Mealthy Inc has not only grown revenues 31% during the COVID19 Pandemic, a time when supply chains are a mess, raw material availability is hit and miss, shipping costs have gone up and consumers have less cash to spend but Mealthy Inc has also become profitable. While the acquisition by MVP Holdings Inc. brought with it a team that has decades of operational experience it also brought with it a team that understands how to create efficiencies in operations, cut unnecessary costs and negotiate better agreements on both the buying and selling ends of the business. That knowledge and know how has helped cut costs by over 20% thus in turn helping Mealthy Inc go from losing $1.9M in 2019 to becoming profitable in 2020. That is a huge and rare turn around!
In 2020 Mealthy started a relationship with Costco and has been selling the Mealthy CrispLid on Costco.com. This relationship has been very successful to date and it is leading up to putting the product in every Costco store in the Spring of 2021. When that happens the volume will more than quadruple the current volume being sold on Costco.com. Look for more updates on this coming soon.
In 2021 Mealthy has many projects on the to do list. First of all we will be launching up to 6 new product lines dependent on how COVID19 continues to effect the supply chains. The new product lines will put Mealthy in other kitchen/cooking/food industry segments that allow us to capitalize on not only our successes with the Mealthy Multipot Pressure Cookers but the Mealthy CrispLid as well. These new product lines will give us the ability to sell products to consumers on a daily or weekly basis and not just every couple years when they need to replace a Mealthy appliance. The new product lines when officially announced will enter Mealthy into an $683B annual market. We believe the new product lines will be a game changer for Mealthy.
In 2021 MVP also has plans to take Mealthy Inc public. While we cant yet go into details the plan is to take Mealthy public by the end of 2021. MVP Holdings Inc has the ability to take Mealthy public without the usual exorbitant costs and red tape that most companies would have to go thru to go public. To make that a reality Mealthy is first launching a 2nd round of CrowdSAFE funding thru a new platform WeFunder.com/Mealthy.
What is CrowdSAFE funding you ask? It's a platform that gives passionate customers like you the ability to invest in companies and brands that they believe in that they would not normally have the opportunity to do otherwise. For as little as $100 investment a passionate customer like yourself can also become an owner in the company and help build it bigger and stronger and give it the ability to create and launch new and updated products for you and your family to enjoy for years.
Why are we doing this? Mealthy wants to use the capital to launch new product lines, launch new updated products, expand international operations, launch new marketing campaigns and expand the current team in place.
You're probably asking how does this effect me as a Mealthy customer? It doesn't, but because you enjoy the Mealthy products we wanted to give you the opportunity to be a bigger part of Mealthy and to help continue to enjoy Mealthy products for years to come.
Mealthy Inc did an initial Crowdfund campaign in 2019 and raised the max allowable amount of $1.07M in just 90 days. It takes capital to grow any good company especially in the first few years. So now Mealthy has launched Round 2 of Crowdfunding. Mealthy Inc lost $3.6M in its first 2 years of operations. That is not uncommon for startups. What is uncommon for most startups is that they reach profitability by the end of year 3 like Mealthy has. Even though Mealthy has reached profitability that doesn't mean it has all the cash it needs to continue to grow and expand operations. That's where the 2nd round of crowdfunding comes in. With the new capital injection Mealthy can order more inventory to supply to the expanding sales channels both in the US and internationally. Inventory was tight in 2020 as Mealthy didn't have the capital to go out and buy the needed inventory levels such as companies like Ninja and InstantPot can. Without the inventory in the US most retailers and even Amazon wont buy from us as a vendor until we have actual product sitting in our US warehouse. So with more inventory, more marketing, new product lines and expanded operations we envision another double digit growth year and even greater profitability.
Once this round of crowdfunding is completed we will then begin the process of taking Mealthy Inc public. Once Mealthy is publicly traded every crowdfunding investor will be converted into an actual shareholder and will have publicly traded shares of Mealthy to do with as they please.
While we are not investment advisors and cannot give out investment advice, think about the publicity that would come with a profitable crowdfunded company actually going public. Very few to none ever get profitable much less go public from a crowdfunded launch. But that's where we are headed and it's happening sooner than later.
It is my firm belief that what we are building at Mealthy is more than products, it's more than recipes, it's more than a brand or a company...we are building a community of like minded people who love good food, good friends and good times spent with family around the kitchen table.
So please join us in continuing to build the Mealthy community.
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For more information on Rd 2 of CrowdFunding go to: WeFunder.com/Mealthy
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