Raising Funds for the First Time
I was recently reading a great blog by Joel Gascoigne similar to the title above and it made me sit back and ponder how this process is going to work. We embarked on this ambitious goal to deliver an app, a product that solves a problem. Not sure if our app and/or product takes us from 0 to 1 or 1 to n (a reference to Peter Thiel’s book Zero to One). What I do know is that it is hard work raising money. You watch Shark tank and you read these blogs and stories on the internet about how it is possible to secure funding, however it never seems to work in your favor.
Now that we are in the process of having the app developed by a reputable company, we thought this would be a great time to go to investors with our beta in tow and hope that they saw the light like we did and be forever drawn to us and give us millions of dollars like: Yik-Yak, Twitter, Tango, and you get the idea. Wait for it…. You heard it hear first, it is not that easy! So now that we have a beta, we need to get traction! Traction is what will make the investors come and possibly give us more leverage, right?
I thought testing your concept was supposed to alleviate this and have investors banging down your door to give you money. How are entrepreneurs supposed to make the dream come true without any money? It’s great in theory to show that you have a 10,000 users in the first 60 days and that your product is in demand, but there is a risk for the founders as well because the service, app, product needs have cost too.
We are still on this journey to bring 5 For Friends to iOS and we fully expect to do so in January. The next part will be to get the necessary traction to catch the eyes of investors and other companies that will no doubt pay attention to what we are doing. All I can think about is traction, traction, traction, which equates to money, money, and more money.
Stay tuned this should be an adventurous ride!