How to get your startup funded

How to get your startup funded

There are three things that make your startup fundable:


  1. Team
  2. Product
  3. Market Fit

TEAM:
Investors are attracted to professional teams with good attitude that will execute and do everything within their means to make the business work. It is also essential that the team complements and works well with each other. A tam is usually composed of


  • Leader
  • Sales & Marketing
  • Developer or Product Specialist


PRODUCT:
The product is the presentation card for the business. It is the business card you use to show to potential funders.

MARKET FIT:
Should comply with this:

  • Scalable: Making hypergrowth possible
  • Validated: Customers are paying or are willing to pay for your product
  • Whether market is crowded or not
  • The total addressable market needs to be big enough (usually one billion) also must be accessible (what you can reach)

For funding startups use Venture Capital (VC) and Angels who usually want 20% of the business. VC's and angels will usually look for the hockey stick graph. In Finland the business angel network can be found here:

www.fiban.org

Angel investors hold the stock 5 to 11 years with the average being 8 years.
VC's have a shorter aim, holding the stock for 3 to 5 years with the average being 4 years. 

Traditional business use loans from banks. Loan money is always cheaper. 

Countries like Finland have state sponsored funds such as Tekes. Tekes tempo requires at least €35k worth of funding. If you pass the criteria and usually 60% of the companies are you can receive up to €50k. The company must be under 5 years old. More information can be found here:

www.tekes.fi/en/funding/startup

Additional resources:

You can google "Start-up Funding" by Nicolas Højer Nielsen and download the first 100 pages for free
Also:
Lean Startup by Eric Ries
Lean Service Creation
www.futurice.com



Location: Helsinki, Finland

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