When do you suggest startups begin fund raising?
Posted by David S. Rose on July 27th, 2014
If founding a startup was easy, there would be a lot more of them, and the percentage that are successful would be much higher.
Unfortunately, it isn’t.
The essence of entrepreneurship is creating a new venture where one does not already exist in the market as you find it. As such, the founding process is one in which the entrepreneur is competing with market forces.
While every entrepreneur would like to have ‘the market’ provide outside investments at low cost to fund the whole startup process, the reality is quite different. In the harsh, unforgiving world of the marketplace, investors who have a choice between Company A with an idea, and Company B with an MVP, will (all other things being equal) go with Company B 99% of the time.
As a result, while you are certainly entitled to begin fund-raising at any time in your process, the earlier you do so the harder it most assuredly will be.
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
Written by David S. Rose
David S. Rose
Founder and CEO,Gust
David has been described as "the Father of Angel Investing in New York" by Crain's New York Business, & a "world conquering entrepreneur" by BusinessWeek. He is a serial entrepreneur & Inc 500 CEO who chairs New York Angels, one of the most active angel investment groups. David is also CEO of Gust.
Gust is the world’s largest platform and community
for entrepreneurs and early stage investors.
Gust
Gust is the world’s largest
platform and community
for entrepreneurs and
early stage investors.
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