Thursday, June 24, 2010

Quick Tips on Raising Startup Funding

photo credit: cambodia4kidsorg

1.Communicate your Leverage Point

Let people know what you can do ‘differently’. Entrepreneurs should talk about their capital efficiency. Probably you are doing some work cheaper than others or you have access to a group of customers – think of any leverage point you have and flaunt it.

2.Communicate through a story

People find stories interesting and exciting. There was this problem and I thought this product would be perfect. Know more about the idea and your product and have a good story with it.

3.Accept that your Startup may have flaws

Every startup has one issue or the other in the early days and accept these issues. Don’t spend time convincing others why your startup is like this or like that. Spend that energy in explaining what your startup may grow up as.

4.Plan Small and Dream Big

In the early days you can’t be extravagant and you need to explain this to be funded properly.

We suggest you read this post at OnStartups for more insight to the topic  

Even though I know an idea is likely going to take more cash than the entrepreneur things, I prefer backing people that believe they can do it with little cash and try to do so.  As Josh said, learn to fail cheaper

Startup FundingFunding, Startups

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