Photo Courtesy: Co-founder, Executive Chairman, acting CEO and board member of Liquidity, Victor Hwang (L) and Commercial Director at Liquidity, Elliott Gansner win the TechCrunch Disrupt 2015 ‘Startup Battlefield’ during TechCrunch Disrupt NY 2015 – Day 3 at The Manhattan Center on May 4, 2015 in New York City.
Most of the startup founders think their startups’ success depends on the seed funding they might get from the events like Y Combinator, Techcrunch Disrupt, OR from any Venture Capital Firms. While this point in itself is debatable, here are a few ways in which you can encash chances to seed fund your startup.
Prepare For The Worst
This may be a very negative point to start, however, this is the best beginning possible. Why? Well amongst everyone who deal with startups, statistics like, ‘9 out of 10 startups fail,’ are commonly known. Now knowing this isn’t enough, what is important is to be of thick skin whenever a new move is been made. If the move works out well, then fantastic, if it doesn’t, then you must have enough power left to try again. Startups are all about trying, starting and failing.
Pick The Fairy Tale-Like Bubble
Most of the startup founders have an idea, think it perfect and start it up. This is not how it works. When you have an idea, and it’s brilliant that you do, just sit back and relax. Think about it. Think about the sort of business that can be run, based on the idea. Then pause once more. Once you are clear with the idea on your own, you will still be biased towards it as it is your own baby.
But when some market research is done on the basis of the plan made, the real scenario is expected to come forth. What does this field research involve? It involves anything from looking at the potential competitor’s products and how they work to whether there is any market for this product at all. This process involves everything from going to the market to google search to a survey and more.
This is when most people will need to be ready to accept the failure of the idea. However, if your idea turns out to be a good one given the market conditions, then you have a full proof business plan ready. Startup accelerators do always want proof of the claims people make regarding the product demand and more and this research will help you in proving your product worth regarding the same.
Make The First 10 Clients Before Visiting a VC Firm
Theoretically, everything may seem brilliant and great, but that does not mean that it is the same when things come to reality. To prove the worth of your theory, it is important to make sure it does work out when the time comes. So before visiting any incubators, accelerators of firms, you need to make an initial attempt to sell your product/service. Make an initial consumer base of about 10 people at least. If you can successfully do that then your startup seed funding is ready to be dispatched. And you have also made an early customer database.
While seed funding is not the only way to starting a startup, the process it makes you go through, can train you for the entire lifetime of your product/service. Three steps as mentioned above, that if adopted, can make the difference between the ‘Yes’ and the ‘No’ of the VC firms.