How to Raise funds - Daniel Plamier

Post on 23-Jan-2017

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Transcript of How to Raise funds - Daniel Plamier

Decide On Your Main Feature

What is one thing your product does really well? A lean team can usually build one feature fast without burning out.

Create a Prototype

Prototype just that one feature. Make 2-5 screens in Photoshop, Balsamiq on paper etc. anything that visually shows how the product works.

Test With 100-500 CustomersAsk people in coffee shops, run Google and Facebook Ads, make landing page, emails. If the prototype make the sense to them, Keep going, if not go back to last step.

Build A Functional PrototypeNow build the functionality. Still just one feature to minimize the cost. See you can do it in WordPress or AppBuilder.

Get Traction With 10000 PeoplesNow the Challenge. Get traction. Try Everything: Facebook, Twitter, Email, Bloggers, TV, Launch Party, partner with another startups etc.

Try Monetizing Monetizing is not necessary if your traction is high. But if it is not, you can monetize your chances with investors will be higher.

DevelopNow that you have tractions/Cash, develop the product to scalability on python, ruby, PHP, Java etc.

Create A PitchSimple pitch deck with product + Market Size + Team + Monetization Strategy.

Find InvestorVC invest $5 Million and Up: Angel average $345K per round. Use LinkedIn, Angel.co etc. to find them. Give demo in the events.

PitchHussle, but be human. Show you are sharp and trustworthy. Tell everyone what you are doing. Sooner or later you will be referred to the right person.

Increase Your ChancesWhile you are fundraising, keep improving your product. No investor wants to fund marketing of development. They prefer to invest in scaling.

Never Give UpThe Founder of Pandora.com was rejected by 300 investors before he got a yes. You are in it to win it. So keep going.