Ask @Jason: How can my startup develop without revenue when that is what angels & VCs look for?

TL;DR

Startups need to demonstrate performance, execution, and customer engagement to secure funding, and relying solely on monthly recurring revenue is not always necessary.

Transcript

okay here's a great question from Pat how does the startup continue to develop without revenues when all angels and VCs are now asking for em or our monthly reoccurring revenue as the measure it's not true that everybody is looking for mr r as the measure some b2c companies would be judged on growth right snapchat Instagram Facebook know these peop... Read More

Key Insights

• 🧑‍🏭 Monthly recurring revenue is not always the sole factor for securing startup funding.
• 🎨 Growth, customer engagement, innovation, and exceptional design can also influence investors' decisions.
• 🤑 Startups without a track record can still raise money by showcasing their execution, team, and potential for future success.

Questions & Answers

Q: Do all startups need to show monthly recurring revenue to raise funds?

No, it is not always necessary for startups to have monthly recurring revenue. Factors such as growth, customer engagement, and the track record of the founders can also play a role in securing funding.

Q: How can startups without a track record raise money?

Startups without a track record can still raise funds by demonstrating exceptional design, a clever business model, or engagement from early customers. These factors can help investors see the potential for future success.

Q: What are some alternative ways to fund a startup without angel investors or venture capitalists?

Startups can consider doing contract work, creating a white label product, or working at a larger company while pursuing their startup project on the side. Developers can also work as freelancers and invest their earnings into their startup.

Q: Is it unfair that some startups with little track record can raise large amounts of money?

While it may seem unfair, funding decisions are based on the promise of the idea and the execution of the startup. Sometimes, less experienced founders may secure funding based on exceptional pitching skills or luck, but this does not guarantee long-term success.

Summary & Key Takeaways

• Not all investors require startups to show monthly recurring revenue before providing funding - growth and customer engagement can also be factors.

• Startups can raise money based on the track record, execution, and innovation of the founders.

• It is possible to fund a startup without angel investors or venture capitalists by doing contract work or creating a side project while working for a larger company.