Angel investor · Founders

How to show traction when you already invested into your MVP, your savings for you to live with no salary, etc.?

Julien Vicente

January 25th, 2017

Question mostly for all those who discussed with VCs interested in the tech (notably media app).

When you're a first time founder, everything is hard!

You gave life to an idea of yours while (usually) everybody told you that it was "already done" in best cases, or crazy in other cases.

You might have built an MVP after having worked with a designer, and a web agency. Which means you already spend a fair amount of money.

You're quite happy with the Bêta, and you decide to jump into the entrepreneurial world to find a cofounder, and to get your product in the hands of real users.

Question is: my background is in finance (mergers & acquisitions), and I know that we will need a seed investment of several hundreds of thousands of dollars to scale in our state (advertising, partnerships, team). And much more to scale in the US. How to convince VCs to invest in your Company and show "traction" with almost no money to spend in marketing?

We kind of have the feeling that VCs always ask for the next step prior to invest!

As for BAs, we fear that we would need 5-10 BAs who as a whole would ask for a lot of equity.

Thank you all for your time and advice.

Dane Madsen Organizational and Operational Strategy Consultant

January 25th, 2017

VCs are investors, not charities and therefore already manage risk. Yes, they want more than you have but that is human.

Traction without marketing budget is an excellent way to prove the market space and that you are smart and frugal. Without knowing what you are building, suggestions about how to get traction are guessing.