Fundraising · Crowdfunding

Have an idea - How can I fund it?

Anonymous

July 11th, 2016

I have a unique business idea and an investor who I need to meet in the middle with budget. Unfortunately, I do not have the $10k to put in at the moment, am reluctant to ask family, and cannot take a loan. I'm looking for ideas of how I can raise my part of the funds to get this developed and moving forward.

How would you come up with the funds? Thanks.

A great idea is 1% of the work. Execution is the other 99%. In this course, we’ll teach you how to conduct market analysis, create an MVP and pivot (if needed), launch your business, survey customers, iterate your product/service based on feedback, and gain traction quickly.

Victoria Cabrera Marketing Coordinator at Patxi's Pizza

July 11th, 2016

Have you tested the idea and it's assumptions in any way? This screams Lean Startup methodology. In other words don't need to build the full product to test your idea http://members.founderdating.com/discuss/topic/Lean-startup

Andrew Gassen Senior Product Manager at Pivotal Labs

July 11th, 2016

1) I think being able to answer the question about why you need funding is important.  Why is that?

2) Why are you hesitant to ask friends/family?  That's usually the starting point.

3) Can you pre-sell to customers to raise funds?  $10k isn't a heck of a lot to need to raise, you should be able to do that IF you've got a viable business.

4) Try to verify that you have a viable business.  I second Victoria's comment.

John OHanlon Owner of Banks Printers

July 11th, 2016

Why do you need funding?

Roman Semenov Web development, Mobile development, Outsourcing

July 11th, 2016

And taking in attention all said behind, you could think about co-founder who able to move your project forward.

Daniel Turner Interaction Designer, Xerox PARC

July 11th, 2016

I hear you, original poster. My family and friends don't have money (certainly not any to lose), nor do I, so don't let people who have that luxury pressure you into thinking that's an option. Even a $1k loss could be serious and leave someone in debt or without things like health care.

But! Hit the library and look for books like Gothelf's Lean UX, Alvarez on customer development, Klein on UX for Lean Startups. Especially since you don't have the privilege of money (losing your own, or someone else's), you need to do what you can to make sure you don't end up like 94% of startups -- which is to say losing it all. Work hard to challenge your assumptions that your "idea" is really not being done elsewhere. Challenge your assumption that people will want it AND WANT TO PAY FOR IT; just because you or friends like it has almost no correlation to that. Don't ask people "this is my idea, do you like it?" Research what problems people can't deal with, and see if your idea might relieve their pains. Build paper or human-run prototype (cost? almost nothing but time), test them with real, unprompted people with the goal of breaking, not confirming your assumption.

That will give you a stronger, more likely product, and something you can take to investors beyond "I have an idea".


Martin Omansky Independent Venture Capital & Private Equity Professional

July 14th, 2016

There is no hard and fast rule for this. Even people with substantial resources sometimes need early financial help because their projects require large gobs of cash - like many ventures in the life sciences. However, investors are less confident about smaller deals that do not feature a significant investment by the founder. This is not a reflection on the quality of the idea, but the perception by the investor that the founder should have something significant to lose if the venture doesn't succeed. Of course, there are many investors that have their own reasons for investing or not investing, so I would say that the lack of a founder's investment is not always governing. To be safe, however, you should have your own funds invested in the venture AND funds in reserve (perhaps 2 yrs. of salary equivalent) before you go into business. Please be advised that business is about money, and that not everyone with a "good idea" can develop a going concern. Sent from my iPhone

ajay rajani Entrepreneur & investor. Aspiring merchant of progress.

July 11th, 2016

Take a look at Nextt (www.nex.tt). Could be the right approach for you.

Elena Ginebreda-Frendel Associate Manager of Communications

July 11th, 2016

Could you tell us a bit more about your idea? Crowdfunding (Indiegogo, for example) could be a great option!

Meghan Uhl CEO, Focal Point Security | Eliances Member | ASIS Phoenix Chapter Membership Chair

July 11th, 2016

Sell everything that isn't nailed down!  That's what we've done & we managed to come up with over $100k to self fund.  Downsize, downgrade, Craigslist or OfferUp everything you can - $10k should be easy to come by.

Martin Omansky Independent Venture Capital & Private Equity Professional

July 11th, 2016

Don't go into business without your own funds. It is a disaster waiting to happen. I would suggest you find a corporation in your industry that would be willing to finance your development costs in exchange for a distribution agreement or license arrangement. Take your share of the license revenue and go on to the next venture.