Funding your startup…
I like the video above, because it shows two guys who have been at this format for a while. Kevin and Robert where both on a Canadian show called Dragon’s Den and have moved to the US version called Shark Tank.
I run across people who are looking to raise funds for their business and most of them don’t get a couple of things.
1. Lots of good ideas will never be successful products and therefor, should not be made.
2. Investors are not banks. They want a part of your company for the money. You probably are willing to give them a lot less than they want because you are over valuing your business.
3. Investors bring knowledge, experience and contacts with their money. Taking that smaller percentage of a much larger pie is often the better choice for the entrepreneur who would have to learn or network for years to get access to some of the things the right investor will bring to the table right away.
4. Your under capitalized and you have a couple of choices. You can take investment dollars and potentially give up some control, or you can try to bootstrap your project and watch your competitors pass you up. In most cases, if you think you have no competitors, it’s because you haven’t seen them yet.
My friend Shawn Carson laid some key validation points out over at his blog out of the garage. It’s a great read, check it out.
I want to know what you think.
