I am an experienced (yet not necessarily that successful ;)) entrepreneur, and I have an idea for a new startup. I've collected about 100 signups from potential end users and potential vendors (to show the potential product/market fit). Since I've been down that road before I know it might be easier to raise now, with a much lower valuation of course, than later, when the product's ready and then I'll be expected to show traction before raising. I need a bit of cash to help me pay developers and get things going. How far off am I? does that sound doable at this stage?

Probably not but not because it's impossible to raise on a deck. Raising based purely on a deck almost only happens by seed funds backing an established team. In this case, the raise is much larger (usually between 1 to 2 million).

Without a technical founder, and without you both having a track-record that inspires a lot of confidence, seed funds are unlikely to invest and they're certainly not likely to write such a small check.

That leaves your options as accelerators, friends and family or angels. Most good accelerators (those writing 20k and greater checks) need product in the market to accept so id say that accelerators are likely not an option but you could try.

Angels almost always want live product, at least a somewhat functional prototype, so unless you have a close relationship with someone who is also an angel investor, this is unlikely to be attractive at this stage to angels.

So your best option for outside money is friends and family at this stage. Happy to talk through this in a call with you.

Answered 6 years ago

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