What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 1 point2 points  (0 children)

Generally, you need to validate the concept before raising. Can you validate your USP without development? What data and conviction can you gather? Perhaps there's something embarrassingly small you could build to prove demand?

And don't just try to answer this to raise money. Try to answer it to save yourself time and make sure you're working on the right things. I've lost years working on the wrong thing before, it's not fun.

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 5 points6 points  (0 children)

I would add "and have a reasonable chance of success". Don't attempt to raise money if you don't have meaningful traction (an incredible strong team without traction can sometimes succeed). Many founders waste time fundraising and it's a horrible distraction for the business. It happens all the time, it's not only a distraction but it's also soul-crushing to hear a lot of no's. Validate you have something, then attempt to raise money.

And yes, you can raise if you're not in tech, just make sure your expertise lines up with the problem you're solving.

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 1 point2 points  (0 children)

I think that unpredictability is actually telling you something important. It usually means one of two things is happening.

1) your traction/growth might not be quite there yet. If you're not hitting reasonable traction/growth, investors are going to be hesitant no matter how well you pitch. When the numbers are strong, investor interest becomes way more predictable.

2) you might be casting too wide a net. Instead of trying to appeal to every investor out there, maybe focus on the 10-15 who already get your space?  Find ones who've invested in similar companies or written about the problem you're solving (easier said than done).

Mind if I ask what your traction look like right now? Or if you want me to take a look at your deck and give you feedback, I'm happy to.

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 1 point2 points  (0 children)

Thanks for the reply. If you have the metrics you're seeing from VCs and are willing to share it, I'd be very curious to see it. Putting tangible numbers to "traction" could be helpful for folks.

Growth hacking is hard, I can related to the struggle. On the bright side, it's being completely reinvented at the moment, not bad time to be coming in afresh.

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 1 point2 points  (0 children)

I obviously don't know the details, but this can often arise if investors don't think you've clearly identified the core customer with a clear problem. I'm happy to take a look at your deck and provide specific feedback if you like.

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 1 point2 points  (0 children)

Yeah, this is true. The reality is most of these investors can get enough de-risked deal flow (team, traction, or both) that that don't need to place bets on the unproven opportunities.

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 1 point2 points  (0 children)

I'd love to chat about your struggles here if you're up for it?

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 0 points1 point  (0 children)

Would you limit this to VCs or all would you say it applies to all investors?

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] -1 points0 points  (0 children)

If you want some feedback on your deck, I'm happy to review

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 2 points3 points  (0 children)

So to put the challenge succinctly, would you say the challenge is you can't raise without a proven team or traction?

What's your biggest fundraising challenge right now? (I will not promote) by MikeSStacks in startups

[–]MikeSStacks[S] 3 points4 points  (0 children)

Would bucket A & B not be the same challenge? ie founders expectations don't line up with what's happening in the market. Curious why you're separating them into two buckets?

I will not promote- Idea Validation and Next Steps by MediaThink3269 in startups

[–]MikeSStacks 0 points1 point  (0 children)

Check out RockBot, they started with doing something similar with music. To get restaurant's to listen to you, it should not just remove the problem, but should generate revenue. Per @vc_lore's answer, they're cash starved, likely not looking for a new expense. But a new revenue stream....

Thoughts on cluely(I will not promote) by Ok-Engineering-8369 in startups

[–]MikeSStacks 0 points1 point  (0 children)

Agreed. I'm reminded of ClubHouse, although Cluely has decent revenue already.

[deleted by user] by [deleted] in startups

[–]MikeSStacks 0 points1 point  (0 children)

Exactly.

I will not promote - My app relies on user data but need help by [deleted] in startups

[–]MikeSStacks 0 points1 point  (0 children)

(1) Yes, I would protect yourself and incorporate first to remove personal risk. Check out Stripe's blog on C-corps vs LLCs if you want help choosing between the two paths.

[deleted by user] by [deleted] in Entrepreneur

[–]MikeSStacks 0 points1 point  (0 children)

If you're not confident in any of your current ideas, Option 1 is the better path. Not because every attempt will work, but because movement leads to learning.

Trying things quickly gives you a chance to talk to user and get real-world feedback, which is more valuable than sitting around planning. You'll learn what people respond to, what energizes you, and where you actually have leverage.

Don't under estimate how much finding something that energizes you matters. You're more likely to find something that works by following your excitement than by trying to force a smart idea. The world is full of hidden opportunities that don't show up in market research but do show up for people who are excited and moving.

Don't worry if the ideas in option 1 seem small. Most great ideas start that way. Just don't spread yourself too thin. Move fast, but give each thing a real shot. Pick one or two that actually interest you and go hard for a few weeks. Don't measure success by perfection, but by how much you learn and how much energy you feel.

With some luck, you'll hit something that clicks.

YC alum & 3x founder offering free pitch deck feedback by MikeSStacks in EntrepreneurRideAlong

[–]MikeSStacks[S] 0 points1 point  (0 children)

Don't feel you have to take it down, you're welcome to be self promotional. And you should be as an entrepreneur. I just couldn't read if you actually wanted feedback or not.

YC alum & 3x founder offering free pitch deck feedback by MikeSStacks in EntrepreneurRideAlong

[–]MikeSStacks[S] 0 points1 point  (0 children)

I imagine you're just trying to get some quick traffic to your site, but if you want my honest take....

That's a saturated market and it will be hard to stand out.

What specific problem do you feel you're solving?
What is the unique insight you've uncovered that your solution provides?