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    Startups Fundraising Thursdays - A Forum to Ask About Fundraising, Investors, Accelerators, and Other Sources of Capital

    Startups Fundraising Thursdays - A Forum to Ask About Fundraising, Investors, Accelerators, and Other Sources of Capital


    Fundraising Thursdays - A Forum to Ask About Fundraising, Investors, Accelerators, and Other Sources of Capital

    Posted: 02 Jul 2020 06:05 AM PDT

    Welcome to this week's Fundraising Thursdays Thread.

    Ask about anything related to fundraising, investors, accelerators, grants, and other sources of capital.

    That includes how to find these sources, how to work with them, and how to negotiate with them.

    Don't be shy. The purpose of this is to learn and share ideas and methodologies with one another.

    Any question is a good question!

    If you are answering questions, remember to be kind and supportive. Many are just starting out and have no idea what they are doing. That's okay! We all knew nothing before we knew something.

    You can also find more support using instant chat on the /r/startups discord.

    submitted by /u/AutoModerator
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    How do I actually start out? Never done this before.

    Posted: 02 Jul 2020 02:35 PM PDT

    Hi guys,

    So I have an idea for a software that I really want to make into reality.

    Problem is, I'm 17 and I have 0 idea where to start financially or logistically.

    I know what I want and I've made flow charts and a slideshow for presentation and I have a friend who makes website mockups and graphic design for a living. But that's about it.

    Do you guys have any advice on starting out?

    submitted by /u/loremispum2
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    An investor wants half of my company. Is it worth it?

    Posted: 02 Jul 2020 11:50 PM PDT

    Hi guys. So I'm currently working on a start up. I met someone through networking who happens to be an institutional investor and has an extensive background in high finance. They have experience with building and scaling successful businesses.

    They like my business idea and want to invest in me... but not financially. They say they want to invest their guidance and experience... It's all very vague. And in exchange, they want a little under half of my company.

    So now I'm unsure. On one hand, I'm totally unexperienced - this is my first entrepreneurial venture and some guidance from someone who is so experienced will be beneficial, but I'm not sure if it's the kind of guidance I need. For several reasons:

    1. This business is not at a point where it's making a profit yet, but I already know what I need to do to get there. My main concern is marketing, and optimising my systems to create a consistent stream of business every month. This investor seems more focused on the formalisation aspect of things, where as I want to focus on making the business profitable as soon as possible. I'm worried our interests might clash.

    2. Lack of knowledge about the industry. This could probably be resolved by examining things, but this investor doesn't have experience in my industry as far as I'm aware, and my business is rather niche to begin with. They will be contributing their general business expertise, but I'm wondering if it will be enough?

    3. Vague terms. I'm not exactly sure what they are going to contribute, they haven't explained it in a way that makes me see any particular benefit, especially towards the goals I am trying to achieve at this stage. Again, they are not investing financially, yet they are requesting half of my company. That seems almost unproportional to what they say they will bring. Which leads me to the next point.

    4. I'm unexperienced, I'm naïve. I don't want to be taken advantage of or screwed over later down the line. I'm not sure if I completely trust this person... Not to say that I think they're dodgy. But, I don't think I know them well enough.

    5. And honestly, having an investor was never really in line with my vision. I wanted to create this business as a lifestyle business, so I can become financially free. I'm not trying to create a corporate mammoth where I have to be held accountable by shareholders. This is a lean start-up, so even if this investor was offering money, I don't think I'd really want it, because its such a low cost business. The only price is sweat equity, which I'm happy to put in over the next few months.

    Basically, I want to keep this business as lean and uncomplicated as possible, and I feel like thinking about having investors at this point would just be... Unnecessary bloat. Especially if they own half of my company.

    I've more or less talked myself out of it, but I wanted to see what some of the more experienced entrepreneurs on here think. Would having an investor who owns a more or less 50% stake for free be worth it, in exchange for their expertise and guidance? Somehow I feel like I'd be getting the short end of the stick in this...

    Thanks

    submitted by /u/Jim_Kardashian
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    Started a company that makes MVPs out of college, advice to find clients?

    Posted: 02 Jul 2020 01:19 PM PDT

    I recently graduated college and I've started a company that makes MVPs (minimum viable products) with a friend of mine. We specialize in creating them quickly and as serverless mobile and web apps in react native and react respectively.

    Literally the day after we decided to start this, with no marketing or anything being done yet, I received two calls from people looking for MVPs. Now it's highly likely that we'll work with one of them and the other is still a rough maybe, but after these (or if they fall through) I'm not sure where to go. Without COVID my instinct would be to go to entrepreneurship networking events, but because COVID is the reality I figure I've got to find clients online. I've done some messaging on Linkedin, signed up for a couple online networking events (the first one I'll be attending is next week), but haven't had any success just yet.

    We know we should be looking for founders or product owners within larger businesses, what is your opinion on a good way to find these people, when they are in need of an MVP?

    submitted by /u/Naked_Jousting
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    Got everything set up for my handcraft business but not getting enough sales

    Posted: 02 Jul 2020 11:45 PM PDT

    I'm working now for years to set up my own business with handmade items, tweaked, tryed, optimised, etc, the full programm, got my shop set up, the legal stuff, marketing. I'm using social media for marketing; Facebook, pinterest, Instagram. Try to be visible without spamming. Don't do email marketing yet, try now paid advertising. In the next weeks I will get around for wholesale and see if I can bring the products closer to local people. I have "big" plans for homepage, online shop, new product line but I need to get sales. I have the feeling I tried now everything but it does not work, I can't get my business off the ground. Any ideas to this?

    submitted by /u/Iverni9981
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    Landing Page for Ides Evaluation before Building MVP?

    Posted: 02 Jul 2020 09:49 PM PDT

    Hello r/startups!

    Long time lurker and first time poster.

    I am in the process of building my first commercial product and need some advice as what to do next.

    Currently, I am basically at stage 0: only have the idea and wanting to make my next move.

    To give some context, my product can presumably be considered "eCommerce" although it is probably not exactly what you are assuming it is. Think of a site like an eBay etc.

    My goal is to eventually build an MVP and a fully functioning website with an implemented business model.

    I know a little bit about code but I currently do not have the skills to build a fully functioning MVP and website.

    My question is: should I build a landing page to gain some product evaluation before physically coding the MVP?

    Is that what is usually the recommended route to go? Or do startups generally build the MVP before/while building the landing page?

    Also, in the landing page, what exactly should I implement to gain product evaluation? I am not offering a software where users can beta test.

    Thanks

    Edit: Title should contain "ideas" not Ides

    submitted by /u/insatiableone2
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    Any good licensing services that we can use to license our software?

    Posted: 02 Jul 2020 08:39 PM PDT

    My team is looking for a product that integrates with our software and Stripe. The product's API should allow us to create and manage user licenses. We have found a few ones already, but I haven't seen any on Reddit or know anybody using them, so please share if you have!

    submitted by /u/greg_man8
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    What are the best resources for startup managers/team leaders?

    Posted: 02 Jul 2020 05:21 PM PDT

    There's a lot of focus on productivity tools and aside from their own guides: where are the best resources on how to apply mental models/different thinking in a leadership role?

    Something for managers to learn and apply instantly to their team.

    Hope this makes sense - Any feedback is appreciated 🙏

    submitted by /u/FLNI
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    How do I focus on one thing?

    Posted: 02 Jul 2020 07:18 AM PDT

    I find myself always jumping project to project. I'm a software developer and all the projects and ideas and problems I come up with are software based, it being a webapp or desktop software, etc...

    The thing is, I'm constantly changing projects because I found one that triggers me more. I started to think that maybe this happens because I haven't yet found that one thing that really gets me focused. I've made a project which ended up very successful and solving a problem, but I got tired of it and ended up making it open-source and closing all revenue from it. Now I'm scared that I've wasted the only problem that I'd solve.

    Right now I have 3 projects ongoing, all different from each other, and I just don't one which one to pursue or if I should even continue with them.

    submitted by /u/BernardoPiedade
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    I am not good at making SOP and keep everyone on track for my Start-up, shall I hire a COO or have someone to keep everything run smoothly internally?

    Posted: 02 Jul 2020 08:39 AM PDT

    Hi all, currently my start-up is getting traction from the market but I am not good at making procedures and keep everyone on track.

    I can either learn to improve my management skills or hire someone to structure the team better, and get everyone on their works (internally)

    In case you have been to a similar situation, what did you choose and how did things turn out to be? I would love to hear your experiences and thanks for helping me out :)

    submitted by /u/mok3yking
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    Help with advice on selling start up

    Posted: 02 Jul 2020 01:32 PM PDT

    I have developed an app fully and now don’t know what to do.

    Posted: 02 Jul 2020 12:07 PM PDT

    I have completely developed a mobile app, frontend and backend, with a team of engineers, and now don't know what to do. We haven't officially formed a company (and have no idea what legal steps we have to take to do so in order to generate revenue from the app). Please help.

    submitted by /u/bcftjbcfhncdyncg
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    How would your experience dictate strategy moving forward for my startup?

    Posted: 02 Jul 2020 09:11 AM PDT

    I have an online service that targets a niche market that I believe I can easily target. I'm projecting worst case - not a complete failure - scenario, that annual revenue will initially peak at $775,000. This would equate to about 6,500 subscribers.

    At this amount the service can be comfortably maintained by myself and a customer support representative or two. I am confident that my software is solid and I only need to scrap together a bit of cash for marketing (website copy and advertising).

    Now, to my dilemma. I have additional features that pair well with my existing offerings, but I don't have the time or finances to develop those features at the moment. I also don't want to get burnt out developing these additional features and then never release my service. Should I launch as is and then consider fundraising for the new features once we hit that target? Or, should I pitch my MVP to investors now so that a full suite of features are available?

    Lastly, my product is close to being released, it's just a matter of building out marketing material. Should I release a pre-launch website to collect registrations or just take the sucker live?

    submitted by /u/jimofthestoneage
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    [Question] - Has any of you worked with influencers - what's the commercial model?

    Posted: 02 Jul 2020 07:54 AM PDT

    So we're launching a new fintech service for EU expats, and based on our research we see an opportunity whereby, we could leverage the traffic from influencers that manage relevant Facebook groups, blogs and news websites.

    Has any of you done this before, what's the usual dynamic for a deal?

    Ideally, what it'd be fair for us is to pay an affiliation fee €£$ based on the conversion that we receive, for example how many people register (or join our waiting list for now). Is this something that works out on both ends? Or what's the usual dynamics of such collaboration?

    Thanks.

    submitted by /u/BagosGiAr
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    An online community for discussing your startup and learn from each other

    Posted: 02 Jul 2020 07:41 AM PDT

    Hi everyone,

    I am in the process of starting my own startup, I literally can't wait to enter this world!

    In the last few weeks, while working on my idea, I was reading all the stories of people in this and other communities. They were really inspiring to me.

    I believe that startup people should be open and share each others, struggles, success, and lessons.

    So I was wondering, do you know of some online community of entrepreneurs in the startup world that periodically meet online and share each others experiences and advices? Does something like this already exists? Maybe a Slack channel or some other platform instead?

    Thanks

    submitted by /u/cmprogrammers
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    Website design and online stores

    Posted: 02 Jul 2020 06:43 AM PDT

    I need a website for my brand and team. I run an esports team that continues to grow in sponsorships. I currently have paid sponsorships from 3 legitimate businesses which is great! Our success and partnerships have garnered support and interest from professional teams in our sport which is great and at this point I just need a website.

    I really want to grow a brand around our team. I have a business model in mind and hoping to have a store (no I am not talking about selling T-shirts lol) and I legit need help.

    If you are in web design let me know and if you have any words of wisdom for me please let me know. I love criticism and I want people to make me think this out. I tend to drive into things like a horse with blinds on

    submitted by /u/DafttheKid
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    stripe custom accounts

    Posted: 02 Jul 2020 06:27 AM PDT

    Hi all, I'm looking into stripe to manage payments for my MVP marketplace. I'm a full stack developer myself so i'm building this out on my own. I noticed in the stripe docs for custom accounts that stripe is essentially hidden (which is good). THey also mention that the platform would be responsible for building the user dashboard, reporting functionality, and communication channels. Is this required by any type of compliance? I need to make absolutely sure I am checking all boxes on that front... The most I would include feature wise in my MVP is a ledger of transactions and obviously the onboarding flow. All I am trying to do is facilitate transactions between connected accounts. What else is there to consider with custom connected accounts?

    Edit: consisder from a business owner / compliance/ gotcha point of view. The docs have a lot of great info but just want to hear other's experiences.

    submitted by /u/TaGeuelePutain
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    Marketing to educators?

    Posted: 02 Jul 2020 04:02 AM PDT

    Hi all, I developed a software for use in law and philosophy classes and have found my first 2 customers via people I know. But to scale my sales i really need to start marketing this more broadly and reaching out to other prospective customers. My product is also rather immature and I'm unsure about investing a lot into ads when I'll probably need my initial customers help to provide feedback on my product 😅

    I'm pretty new to marketing, and even more so to the higher education market, so I'd like to know how I should get started on this, and what the best resources are for me to use.

    Any help would be very appreciated! 🙏🙏

    submitted by /u/gmkung
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