Andrew Gluck, GP with irrvrntVC, a next-gen commerce investment fund, drops by Pitstop to let Lucas in on some of the secrets to raisin that ever important starting capital
It doesn't matter how innovative a business idea, industry perspective or consumer product may be, if you don't have that crucial first pile of cash to invest in getting a brand off the ground, it all amounts to nothing.
Since someone usually starts a business to sell an item to make more money that they currently have, paying for the initial start-up can seem like a constant cycle of catch-22s.
Thankfully, angel investor expert Andrew Gluck is here to keep your wheels from spinning any longer, and get you off on the road to success with these tips for raising that initial capital.
- Friends and Family First. The most forgivable loans with the lowest interest rtes you can ever find may come from those closest to you. While not everyone has a crazy-rich relation they can beg for money, friends and family often want to see you succeed, and might at least contribute to getting you closer to your goal.
- Lift Yourself By Your Bootstraps. You don't necessarily need every cent of that initial capital to get going at full speed, just enough to get a little momentum forward. If possible, invest in yourself first, and spend whatever you can from your personal funds to get your business off the ground. If you can afford it, build a promotional site, order a prototype and start taking pre-orders to raise the rest, until you can afford to enter full-production.
- Sign Up For An Accelerator. Join a growing community of young developers and interested entrepreneurs to mutually help each other move forward with accelerator services like Y Combinator, Techstars, XRC, financiers like Clearco, Shopify Capital or even smaller, more populist sites like AngelList and crowdfunders like Kickstarter and IndieGoGo
- Fortune Favours The Bold. Chances are you already know some of the movers and shakers in your niche market, and are familiar with who are some of the bigger investors in them. Find out who is pumping cash into your competition, no matter what size, and approach them with your own proposal. If what you bring to the table is innovative or engaging enough, you may find them very interested.
"When can I get involved with venture capital?"
Maybe you just want to skip to the end and find someone with deep pockets who will offer up all the security your brand needs, with a healthy cut. There is little if no turning back from this route, says Andrew, so be very sure that this is the direction you want to follow, and be certain that your business is capable of reaching the kinds of heights, millions & billions of dollars heights that is, that will be expected of you.
BE WARE: Raising capital can have strict limits and laws based on where your business is located, what industry it's in, and if there is cross-state or even international-trade. Carefully research the rules before you raise a single cent, you don't want to wind up in trouble before you've even had a chance to make a single sale
- Tags: starting capital