🎯 Raising funds doesn't only get money but also growth to your company, choose the right investors too 😉 ( Don't be greedy and run behind any kind of Term-Sheet ).
We will talk about complete 0$ to Million$ fundraising.
💡 Why do you need funding ? Do you even need funding ? Ask few questions for yourself
- Can I build the MVP without funds ? ( Most of the MVP can be built without funds )
- Is money the only thing which is stopping you from starting ?
- Do I need funding to scale or do i need funding to start ?
💡 Suggestion : If you need a validation first, build a MVP and try to seek validation don't wait to raise funds. If you wanna run behind the market and scale it then start to raise funds with a proper product and USP.
There are different paths of funding for early stage.
- One y'all know is 👢 Bootstrapping, usually using your savings, fund from your family and start the operation and later using the revenue to scale.
- Next is 👼 Angel Investors, small investment or medium scale investment usually done by HNIs, Fellow startup founders. Usually at early stage and early revenue stage.
- Next is as usual VC funding 💰, usually high investments from venture capitalists.
- Debt funding ( Let's talk in upcoming post, it's not that preferred at the early stages )
- Crowdfunding ( Let's talk about it in upcom6 post, and same it is confusing and clustered not preferable )
( One more path is Grants, usually provided by goverment and few accelerator / incubators. Where at early stages it will be useful for many start-up )
Let us talk about the 3 common types of funding in more elaborated way.
- Bootstrapping 👢
- Angel Investors 👼