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What is the process for any startup to raise funds?

Asked by:
Jef LippiattCo-founder at Startup Chucktown
Ananda,Thanks for the question. It really depends on what type of funds and how much you are trying to raise.If you are trying to raise a small amount of capital (less than $50,000):Friends and family - Hopefully, they would see the potential in your idea or in you and want to help fund you.Credit Cards - This is a dangerous idea and should be avoided if at all possible.Crowdfunding - If you have an interesting idea, you can share your vision and see how other people react (this is a great way to see if you have a market for your idea)If you are looking for $50,000 to $100,000 you have a few options:Friends and family (see above)Crowdfunding (see above)Bank loans - These usually require a lot of detail to understand your cash flow, current equity, business plan, projections, etc.. The aren't usually easiest funding to get.Angel Investors - These investors typically aren't looking to make huge investments (typically between $10,000 to $100,000 (it can be more, but unless several are working together don't expect a windfall). The great thing about angel investors is that most times they aren't looking for an equity stake as big as a Venture Capitalist. They may want to be more involved in the day to day business or be a mentor or advisor for the business.If you are looking for $250,000 to $500,000. This is typically a seed round of fundraising:Bank loans - Are still an option (but for this kind of an amount they are typically looking for an established business). (See Above)Crowdfunding - This level of success on crowfunding platforms is possible, but isn't reliable. (See Above)Angel Investors - Typically this amount would require several Angels or a group of them (See Above).Venture Capitalists - This is typically a small amount for an established Venture Capitalist firm, however, if they really like the idea or your team, it isn't out of the question. If you can land a Venture Capitalist at this level they may invest more money in later rounds of fundraising (Series A or B). Keep in mind Venture Capitalists are going to want a much larger piece of your equity pie (typically between 25% and 50% depending on the amount of money they infuse).If you are looking for over $1 million dollars you should focus on:Angel Investors - They would probably only fund a portion of what you need (See Above).Venture Capitalists - Again this usually happens once a venture has already done some fundraising, but it isn't out of the question if you really catch the right person's attention or interest. (See Above)Crowdfunding - It is possible to raise over $1 million with crowdfunding, but it is a gamble when trying to raise that amount of funding.Keep in mind the more money you are trying to raise the more effort you will need to apply. Getting large infusions of money will mean you need to explain how the money will be spent and how that will grow the business. Don't get frustrated, at each of these levels people can and will say "no" to you. That doesn't mean they don't want to help or aren't interested, sometimes the timing isn't right. Stay focused and keep looking at ways to fund your business. If you are passionate about your venture, you will eventually find some funding. One last note, don't try raising more money than you currently need. If you only need $50,000 to grow your business to the next level, don't waste time trying to raise $1 million dollars.
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Application design and development

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Phil JoelDirector at SavvySME
I couldn't agree more John. Scope Creep is arguably the biggest risk to any IT project. When delivering a successful project, it always comes back to finding the right balance between Time, Cost and Quality.
Questions

Do you have any tips on building a mobile app?

I am looking at venturing into the world of mobile apps just wondering if anyone has any ideas,... read more

Asked by:
Shoaib KhanzadaDirector at Ingress Solutions
Hi Linda, Good to see your message, I have joined SavvySME today and I have 12 years programming experience and certified mobile application developer. I also run an offshore software development company and we do both web and mobile application development, with my local presence in Sydney, I can certainly help you to "transform your ideas into working solutions" and provide you very valuable suggestions on the product you are looking to develop in near future. Feel free, to reach me at [email protected] for further discussion. Thanks, Shoaib  
Michael Reid CADo All The Things! at Michael L Reid CA
Is it for your business ThoughtSpot PR or for another idea that you have?
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Application design and development

Enterprise IT has lost it's way and needs to learn from the successes of start up thinking

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Jonathan HatcherPrincipal Consultant at Oakton
Hi Seb, I need to turn on notifications, I didn't see this. It sounds like we agree. I'm not ignorant to the complexities of complex accounts, having worked on some very large ones indeed (250+ people, $200m+) in Europe. I just pickup on people's language and some IT professionals still seem stuck in their technical world, with a cursory mention or two of the business or customers or value. We still need techies, we still need technology, but it needs to be traceable to value creation. Regarding validation of the idea, I still maintain that IT should provide that service to the business. The CxO can and will still make those decisions but perhaps if a service exists whereby the investment can be smaller and scientific it might change behaviour. Appreciate your point that humans will be human though, I'm not sure I understand where you're going on the business vs IT problem. It is of course a business problem (most companies aren't in the IT business), but I feel that IT is letting them down. Through commoditisation they are becoming increasingly irrelevant, they need to step up. Jonathan
Sebastien TremblayManaging Director at EmpireOne Group
Oi! SavvySME... where's my markup gone!
Questions

Do you have any tips for creating a mobile app for a business?

Anyone created/made a mobile app for their business would love tip/ideas thanks Linda  read more

Asked by:
Andrew OsborneDirector at Appliquette
Definitely make sure your website is optimised for mobile before thinking about an App.  There are pro's and con's for having an app, but often it is an exercise in having an app for the sake of it. The major thing is ensuring there is indeed a purpose for the app that is useful for the customer as more often than not the cost per customer is not worthwhile. On the flip side - An app can offer your customers a useful & purposeful experience far beyond a website.
Phil KhorFounder at SavvySME
Hi Linda, I came across this Infographic this morning, and thought you may find it useful - especially with some "best practices" summarised at the bottom of the page [Infographic] Time to go mobile
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