May 23, 2017
The road from idea to IPO is full of pain, tears, joyful moments, and startup funding, if you are serious about building the next Facebook or Google.
But let’s take a step back before we talk about startup fundraising in detail.
So, you have a world-changing business idea. You also found your co-founder and started validating your educated guesses (often called hypothesis) by talking to potential customers and testing your MVPs with actual customers.
But then you realize that only 40 percent of small businesses are profitable (while 30 percent continuously lose money) and 82 percent of businesses that fail do so because they have problems generating enough cash.
Here’s the sad truth.
Most startups will – at some point – need external funding from investors such as business angels and venture capitalists, so they can improve their metrics (e.g. revenue, customer acquisition costs, customer lifetime value, profit margins) and turn their current loss-making business into a world-leading profit machine.
But how can you get investors (venture capital, corporate venture capital, angel investors, angel investment networks) to invest in your startup?
Let’s take a look at how startup funding really works by looking at insightful concepts and the real-life case study of Facebook.
Ready? Let’s get started.
To read the remainder of Martin’s guide, please click here.
Martin Luenendonk started two online businesses, worked in venture capital, and helped entrepreneurs raise millions in venture capital. He shares actionable startup fundraising strategies on roadtofunding.com