Questions

How can I obtain seed funding to build MVP and prove a concept?

Have seen that crowdfunding is a challenge because you still have to pay lots of $$ to send traffic to the page to even be seen. Also, concept is an online service so not much to give as gifts for contributions.

5answers

Ask your parents.

I know that sounds glib, but honestly in today's rich technology access landscape you should be able to build a prototype of anything for free or at least under $50. In many cases you don't even need to know how to code.

Here are some examples:
SiteGround - Wordpress hosting plan: $3.95/mo
Install Wordpress: Free
Web template: Free (or spend a few bucks at Elegant Themes - I love them)
Add WP tools: Free mostly, some cost a tiny bit
Need a DB for CRM, planning, scheduling, other? You don't even need to know how to create one or connect it. Airtable.

I could go on and on. Chatbots, marketing tools, selling/ecom, webinar tools, etc.

Nobody but your mother will pay you to do what anyone else with a spoonful of hustle will do on their own.

That said, once you do have a prototype THEN you have something that could be interesting to angel or seed level VC investors. And we can really get into how to succeed at that.

If you have more questions, let's setup a call. I've built a LOT of prototypes. I've built and run 3 startups. I mentor founders almost every day of the week. I can help.


Answered 3 years ago

There are platforms that allow crowd funding for websites. However, you touched on a very specific point, that even I myself am currently facing. It costs money to get awareness to raise money. So, the best thing to do is narrow your focus for the MVP. Focus, on the most critical problem-solving aspect of your product for the consumer, from there build that, you should significantly reduce your build out costs by doing that. And for the answer the easiest way to get funding is either pay for it yourself (i'm currently doing it, so I understand the pain), or ask friends and family. Also, a huge take away, remember to be mindful of what you are asking for in terms of money. You aren't asking for investment, per say, but more for money to develop the platform. The reason I bring this up, despite what we may feel and think, as the platform does not have clear market fit, we do not have a true way of returning that investment money as of yet.

For more help, call me buddy!


Answered 3 years ago

You will be surprised to search out that, in fact, an MVP isn’t just unnecessary, it may also be hindering some when pitching investors.

First off, let’s see what the core difference is between pitching with an MVP, and without it, in terms of the expectations it sets for investors, and what it means for you.

When approaching investors, you ought to bear in mind that there are several risks they consider:
Team risk: Is your team competent enough to create and run the business?
Market risk: is that the market large enough or growing fast enough to be considered promising?
Timing risk: Is it the correct time to enter the market?
But there’s an excellent more important issue – product risk: are you able to convert your business idea into a product vision?

This includes the product’s ability to come up with revenue, to resonate with a particular audience, and its usability and value.

For you, there are two ways to eliminate product risk:
Sell the business idea and merchandise vision – demonstrate that you simply know exactly what you wish, a way to build it and the way it's visiting generates revenue.
Sell the results – demonstrate that your product works and is ready to get revenue.


Answered 4 months ago

Just like one plant a seed and nurture it from a sprout to a plant, a startup also requires proper nurturing, and that's where seed funding comes into the picture. The timing of raising seed money can have a huge impact on the outcome and before deciding on the appropriate timing, founders and entrepreneurs need to be prepared with a meticulous business plan, market research and roadmap for product development.
You can read more here: https://inc42.com/fundraising-101/how-to-raise-seed-funding-and-angel-funding-for-startups-india/
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 4 months ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2021 Startups.com LLC. All rights reserved.