First-time startup founders must first prove their faith by investing their own money
Startup founders, especially those who do this for the first time, usually know little about how to raise money. So they turn to their friends, family and fools, the so-called 3F, that are willing to invest those ideas with their money. Aside from begining with solid actions, startup founders have to first invest their own money to convince those potential early investors.
It is a process rather than just one thing when it comes to funding
Aside from startup business, it is a constant routine for startup founders to raise money once in a period of time. Begin with raising money from the so-called 3F, then angel investors or crowd funding, and finally venture capital when startups expand.
Does that mean we can’t start our startups without having a great deal of money? Then how about Elon Musk, Mark Zuckerberg and those start from scratch? I’ve invested my startup capital in the financial market. With no money at hands therefore I have to postpone my plans. In the awkward and embarrassing days of having no money for my startup, I have been thinking about the following questions over and over again.
Is sufficient capital the most essential key factor in the early stage of startups?
- Timing, team, creativity, business model, capital, which among the following matters most?
- How do I raise capital?
- How do I recruit co-founders and core staff?
- What exact product or service should I work on?
Come up with a disruptive innovation product or service and prove it works
Among the key factors for becoming a successful startup, capital and team are factors that affect each other: with sufficient capital you are more capable of building a good team; with a good team it is a lot easier to attract more capital.
But, how do we find capital or a good team after all? Once in a meeting with Mask Wu, the founder of Eatgether, I finally found the answer that troubles me for a quite long time. Capital and a good team are essential factors for startups, but not the most important factor in the early process. A good and viable product or service can earn startup founders necessary capital and a decent team they need in their early startup process.