Business Development · Business Strategy

How much should I capitalize my business with at the beginning?

Nishant Dogra UI/UX Designer at Blog Sparks Network, Inc

September 15th, 2016

Any thoughts on how to do this for a SaaS platform would be appreciate it. I am thinking as options crowdfunding, bootstrapping, and friends and family. I wonder what is the best option given the timing. The stage is currently idea.
65% of startups fail due to co-founder conflict, according to Harvard professor Noam Wasserman. To help you avoid conflict, we’ll give you the tools you need to determine the right equity split, including the framework to measure contributions, case studies and more.

Rod Abbamonte Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute

September 16th, 2016

Validate idea / traction / monetization investing your own money. 

Sebastien Mirolo CEO DjaoDjin inc.

September 15th, 2016

I would always recommend to sell the idea first. If you can get customers to commit to pay "3 months in advance money back if we don't deliver the product 3 months from now", you are solving a real problem and won't have an issue bootstrapping development and growth through customers.

Otherwise I would also do a back of the envelope financial model. We published DjaoDjin's financial model for boutique SaaS a couple weeks ago (http://djaodjin.com/blog/breaking-the-curse-of-negative-cashflow-in-saas.blog.html) but you can find other models as well. Google "SaaS financial models". Plug in some numbers in any model that seems appropriate for your business will give you an idea of when you break even and how much runaway you need to get there.

Martin Omansky Independent Venture Capital & Private Equity Professional

September 16th, 2016

Use your own money first, and try to continue to do that until your product is at the MVT stage. All other options have negative consequences. Contact me at crucibleadvisorsatgmaildotcom to get details. Sent from my iPhone

Nishant Dogra UI/UX Designer at Blog Sparks Network, Inc

September 18th, 2016

Sebastien Mirolo idea is cool. Sharing the idea first and making the funds in like this way is best. Thanks for the comments.