How to get $25k- $100k in 6 months
Pick 2 quarters to start your 6-month plan and then complete the following 3 steps.
- Prepare your funding material
- Youtube 1 minute pitch
- Pitch deck
- Media materials
- Web presence- website, social media, press, partners
- Update profile on crunchbase, gust and angel list
- Plan your need to determine your milestones
- Below $25k- Expected that you already had an MVP and tested market need for your product solution
- $25k-$100k to build a product, market and distribute to a userbase
- $100k-$500k to build a better product or enhance features, market and distribute to growing userbase
- $500k-$1M to grow and enhance product market fit
- above $1M- you now have a playbook and want to repeat the same cycle and scale quickly to either penetrate current markets or stretch to new geographic markets, customer target brackets etc
- Plan your funding rounds (calendar and target list)
- Pre Seed- Bootstrap funds (your savings, credit card, loans) + competitions
- Seed Crowd- competitions, crowdfunding campaign or monetization of your product from first users/customers or small angel investors (this requires having a heavy marketing strategy loop to get the crowd supporting you)
- Series A, B, C- Smart Capital investment from Angels, VC funds, corporate investments
Re-access your perception of startup funding. Your goal is not just to raise cash but value that can propel your startup forward. Goal
- Cash investment
- In kind services for free- marketing, legal etc
- Partnerships- validation
- Inkind services- Legal, venue, marketing (avoid paying for social media campaigns and ads)
5 Bucket Strategy
Bucket 1 Competitions- Prizes, Contests, Grants
- Go through F6s, Younoodle.com and extract at least 100 competitions that you qualify for and set them on a calendar date for the year. Make sure you have at least 20 due in 1 quarter with results showcased in the next quarter.
- Google Corporate Contests for Small Business: Fedex, UPS, Mastercard, American Express etc. All corporates have a contest arm for small business. Apply to them.
- Go through eventbrite.com and meetup.com and search not based on groups but based on your city calendar. Select all of the pitch competitions that offer cash prizes, in kind services or access to resource partners.
- Spend 1 weekend 48 hours applying to all 20 in bulk. Some do a draft week and then submit the next weekend after letting other members of the team review first.
At, Vendedy, we applied to over 90 competitions and was finalists for about 19 opportunities and won 5: $25k DEW, $15k Mastercard Pitch, $10k Chivas Venture.
Bucket 2 Family, Friends, and Supporters (Crowdfundng Campaign) w/ Email Blast Strategy
- Add thunderclap to any crowdfund campaign and do small increments
- Prosper.com- Peer Lending group
- Kiva.org- Microloans by a group
- Crowdrise- equity based funding
- Teespring- T shirt crowdfunding site
Bucket 3 Smart Capital Investments
- SBA Loans & grants
- Find the investors that fit your startup profile on Angelist.com + Gust.com
- Angel investors (individuals) or (syndicates) can invest from $10k to $500k to $1M In Boston the biggest is theCommon Angels. In the Bay Area it’s the Band of Angels. You can find groups near you through the Angel Capital Association.
- List out 100 angels and VC firms that fit your startup- your hit list draft- make an excel spreadsheet. List all of the people in your linked in network who knows them and can make a warm introduction- do this by adding all of them on linked in and following them on twitter. Close the gaps lets say only 20/100 are within your network reach but the other 80 aren’t…devise a plan to see how you can reach them warmly- are they going to be at an event, they do have an open pitch round, etc
Bucket 4 Incubators, Accelerators, Boot Camps, Corporate Programs
- According to the National Association of Business Incubators, there are about 800 incubators in the US.
- Apply to at least 12 that fit your niche. Even if you don’t get in, the interview process reveals a lot of wholes that you night of missed.
- Research Corporate Partnerships for Startups- IBM Global Enterpreneur, Microsoft Bizspark, Amazon, Hubspot program
Bucket 5 Get Creative
- Host events, workshops where you offer your solutions to customers…charge $5, $10 etc
- Google search consulting projects at major entrepreneurship centers- colleges and graduate schools are consistently looking for live cases to do work for
- Donations via social media. For example, the Tweetsgiving drive via Twitter pulled in over US$10K in just 48 hours, simply from donations of $5 or $10 dollars. This sort of approach works thanks to online payment processing services such as PayPal .
- Online ad revenue. This is an option that has only become available in the last few years. If you have the skills to build, promote and monetize a web site – which you can start for practically nothing – then you might profit either by selling it or using advertising or other revenue (premium content sales, subscription fees, consulting, etc.) to fund your startup.
- Air BNB raised $25k selling cheerios- We made 500 of each (Obama O’s and Cap’n McCains). They were a numbered edition on the top of each box, and sold for $40 each.
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