Has anyone here raised capital?

[MRiabov]

Sup.

Okay, who am I kidding, everyone knows I'm almost broke.

I have started doing a web design "business", to fund my invention.
I am in the process of designing a website for a client that I've found, but I know that even to get to 3-5k revenue which I need, it's going to take weeks of 16-hour days to get to that amount. Not that I am unused to 80-hour workweeks, but I could do something more impactful on the world, for god's sake!

Now some of you may have seen my attempts to "interact with the market" on this forum, and I've gotten a clear response again - until you build the real thing, no one is going to buy into it, not even give you their address. For those of you who haven't, I am building a complex machine for the kitchen that if done correctly may be a huge convenience and solve time issues for many people in the world. Even if I can solve it for at least 1% of relatively wealthy individuals, it wouldn't be a waste, but I don't exclude that it might be as widespread as IPhones - it solves a big problem and solves a big convenience. People will tell each other about it when they have it - I'll make sure to make such good experience that they will.

But I need to build it, and I don't have even my own runway to go. Right now I have less than 500$ in my bank account, and a 3d model of it. I can try to find angel investors, who I can demo that I will not fail, that I can go big, and ask for a small investment 5-20k - not giving up too much equity too, like 2-3% perhaps.

I don't view investments as "F*ck off" from my work. It will save me from some suffering that I have right now, of course, but... It is my life's mission to have an impact on the world and to create a mass production of service, but now I am literally cockblocked by having no capital.

How would you go about it? I have quit all social media long ago and have no presence, but I must find entrepreneurs who would like to see my business grow. I can cold email, or cold message on twitter, but there are little entrepreneurs which actually give good advice, and I am reluctant to go to those who give bad advice.

Or just option 3: shut the hell up and go do work while violating your dreams?

TL;DR:
I have no capital.
I believe that I have a power to change the world, and I found a way to materialize it.
I don't know if VCs are a good option
I think solo entrepreneurs are more suitable, but where do I find the good ones?

Where do I find people, who would want to see my business grow?

 

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[Plushy]

Quitting social media is a good idea, but it's also a great venue to advertise your business. Start marketing from there. Plus, if you have tons of likes and retweets on your product, investors will be more apt to think "wow, people really like this product" You can consider crowdfunding. Maybe presenting your item to manufacturers or people with similar products to yours for investment.

You could create YT videos, TikToks, and Tweets demo-ing the idea, even the 3D model; maybe even making short cheap ads and stuff showing the use case for it. Or if it's not ready to be demo'd yet, I'd work on saving up for the demo.

If you just need 5-20k, you can save that through a job within a year. During that time, you can be marketing your idea. If you are impatient but really believe in that product, you can always get a loan from the bank or your family right away. You either pay in risk or your own hard work, I don't think it's fair or possible to pay in other people's hard work. Everybody's dream is to risk someone else's money instead of their own.

 

[MRiabov]

Quitting social media is a good idea, but it's also a great venue to advertise your business. Start marketing from there. Plus, if you have tons of likes and retweets on your product, investors will be more apt to think "wow, people really like this product" You can consider crowdfunding. Maybe presenting your item to manufacturers or people with similar products to yours for investment.

You could create YT videos, TikToks, and Tweets demo-ing the idea, even the 3D model; maybe even making short cheap ads and stuff showing the use case for it. Or if it's not ready to be demo'd yet, I'd work on saving up for the demo.

If you just need 5-20k, you can save that through a job within a year. During that time, you can be marketing your idea. If you are impatient but really believe in that product, you can always get a loan from the bank or your family right away. You either pay in risk or your own hard work, I don't think it's fair or possible to pay in other people's hard work. Everybody's dream is to risk someone else's money instead of their own.

A YEAR? A year is beyond huge. Besides, from flat broke to filthy rich ladder is more profitable. I've recently earned more money washing windows for 3 weeks than I did on a job as a junior programmer for a year.

Life counts, and this is what is wrong in this equation. Years are too precious to be wasted. I have developed the entire product with almost all functions except the secondary (for now) features for what? Less than 2 weeks?

Investors know very well that likes don't mean jack. Seasoned entrepreneurs can rely on one thing - customers give you money, or they don't. Crowdfunding needs big advertisement budget upfront...
I aim for productocracy. Once one version can be built, the word will start getting around. And this is what I'm aiming for.

 

[Private Witt]

A YEAR? A year is beyond huge.

False. A year is small period of time in a real earth shaking business. Better dig in for 5 to 10 or you're not gonna make it.

 

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[Kevin88660]

Sup.

Okay, who am I kidding, everyone knows I'm almost broke.

I have started doing a web design "business", to fund my invention.
I am in the process of designing a website for a client that I've found, but I know that even to get to 3-5k revenue which I need, it's going to take weeks of 16-hour days to get to that amount. Not that I am unused to 80-hour workweeks, but I could do something more impactful on the world, for god's sake!

Now some of you may have seen my attempts to "interact with the market" on this forum, and I've gotten a clear response again - until you build the real thing, no one is going to buy into it, not even give you their address. For those of you who haven't, I am building a complex machine for the kitchen that if done correctly may be a huge convenience and solve time issues for many people in the world. Even if I can solve it for at least 1% of relatively wealthy individuals, it wouldn't be a waste, but I don't exclude that it might be as widespread as IPhones - it solves a big problem and solves a big convenience. People will tell each other about it when they have it - I'll make sure to make such good experience that they will.

But I need to build it, and I don't have even my own runway to go. Right now I have less than 500$ in my bank account, and a 3d model of it. I can try to find angel investors, who I can demo that I will not fail, that I can go big, and ask for a small investment 5-20k - not giving up too much equity too, like 2-3% perhaps.

I don't view investments as "F*ck off" from my work. It will save me from some suffering that I have right now, of course, but... It is my life's mission to have an impact on the world and to create a mass production of service, but now I am literally cockblocked by having no capital.

How would you go about it? I have quit all social media long ago and have no presence, but I must find entrepreneurs who would like to see my business grow. I can cold email, or cold message on twitter, but there are little entrepreneurs which actually give good advice, and I am reluctant to go to those who give bad advice.

Or just option 3: shut the hell up and go do work while violating your dreams?

TL;DR:
I have no capital.
I believe that I have a power to change the world, and I found a way to materialize it.
I don't know if VCs are a good option
I think solo entrepreneurs are more suitable, but where do I find the good ones?

Where do I find people, who would want to see my business grow?

To be honest you are building your plans are very shaky financial foundations.

You have less than $500 in bank account, and you are in a web design business to fund for your invention. It is in my opinion a terrible way to fund your business using another business. Business income are far from stable unless they are already on track.

It is like you are having a toddler and an infant, and you expect the milk money for your infant to be paid by the toddler when he grows up and find a job. It just won’t make it in time.

For something that needs 5-20k only it is best to bootstrap.

You should focus on web design until it provides stable cashflow. If it doesn’t work just find a job which at least can predictably offer you the money to start your invention after six month.

It is best to fix problems one by one, instead if tackling them all together where the success of one is contingent on others being successful as well. It lowers your probability of being successful.

 

[ZCP]

hit up @Rearden
get him your model / info / details and he'll see if there is a market / it could license
maybe even take his course

we should talk this week. might be time to reexamine your why and pick a path. too frantic, too jumping around, too silver bullet. let's get you focused.

 

[Kung Fu Steve]

There's a very technical (and secret) strategy for raising money to fund something like this called "friends and family"

You need to sell the idea. Just from what you've written here, you seem passionate about it. Start talking about it to all of your friends and family and ask them who they might know that would be willing to invest a couple thousand bucks to get you started.

Actual psychological strategy: ask who they know (don't ask them directly) because it leaves the door open for them to say "well, why not me!?" without coming off as a creepy person always asking friends and family for money.

How can you decrease the risk? Can you build a shitty prototype on your own? Can you get a facility to make them on demand (without major retooling)? Can you get away without purchasing a 30k mold before you know it's going to sell?

You don't need equity partners, you need a loan.

I wouldn't recommend getting a bunch of credit cards to anyone... but I know my stuff pretty good at this point and if I *knew* something was going to work (because there's pre-orders, sales, people willing to give money), it would be an easy solution.

Not to offend you, but you're talking like you have a billion-dollar idea and that you need venture (aka vulture) capital. I think you need to come back down to planet Earth.

 

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[Plushy]

A YEAR? A year is beyond huge. Besides, from flat broke to filthy rich ladder is more profitable. I've recently earned more money washing windows for 3 weeks than I did on a job as a junior programmer for a year.

Life counts, and this is what is wrong in this equation. Years are too precious to be wasted. I have developed the entire product with almost all functions except the secondary (for now) features for what? Less than 2 weeks?

Investors know very well that likes don't mean jack. Seasoned entrepreneurs can rely on one thing - customers give you money, or they don't. Crowdfunding needs big advertisement budget upfront...
I aim for productocracy. Once one version can be built, the word will start getting around. And this is what I'm aiming for.

Well, if washing windows is faster to get the funds what's stopping you from doing that to get 5-20k to build your prototype?

 

[MRiabov]

False. A year is small period of time in a real earth shaking business. Better dig in for 5 to 10 or you're not gonna make it.

Is it? With Kinetic Execution, when you invest in something only when that something proves to be, you can do a lot of stuff.
When you don't mess up the order of things, they seem to click in and compound...

 

[MRiabov]

There's a very technical (and secret) strategy for raising money to fund something like this called "friends and family"

You need to sell the idea. Just from what you've written here, you seem passionate about it. Start talking about it to all of your friends and family and ask them who they might know that would be willing to invest a couple thousand bucks to get you started.

Actual psychological strategy: ask who they know (don't ask them directly) because it leaves the door open for them to say "well, why not me!?" without coming off as a creepy person always asking friends and family for money.

How can you decrease the risk? Can you build a shitty prototype on your own? Can you get a facility to make them on demand (without major retooling)? Can you get away without purchasing a 30k mold before you know it's going to sell?

You don't need equity partners, you need a loan.

I wouldn't recommend getting a bunch of credit cards to anyone... but I know my stuff pretty good at this point and if I *knew* something was going to work (because there's pre-orders, sales, people willing to give money), it would be an easy solution.

Not to offend you, but you're talking like you have a billion-dollar idea and that you need venture (aka vulture) capital. I think you need to come back down to planet Earth.

True. The thing is, all of my family is 100-200$/month broke, and 5/6 receive social welfare, plus father receives money from mother because he struggles to make money off doing what he loves... Yeah.

My mother is an entrepreneur, and she may have contacts, but back in Ukraine, 5k is quite a lot... For 5k you can buy a ticket out of it...

Not to offend you, but you're talking like you have a billion-dollar idea and that you need venture (aka vulture) capital

Ah, I had a good laugh just now, thank you.

That said... Who knows? I need to test that I do.


> Well, if washing windows is faster to get the funds what's stopping you from doing that to get 5-20k to build your prototype?

Well, isn't that better advice?

 

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[Kung Fu Steve]

Where are you?

 

[MRiabov]

Where are you?

Right now, in Ireland, but I will be moving out of here soon to country called Slovakia, because my university is there. Half of my family is here, with me in Ireland (grandparents who were pretty successful back in USSR and mother), and another part is back in Ukraine because don't want to move or can't drive out because men can't leave the country.

So in Ireland right now. I started a Web design business because I will no longer be able to wash windows in Slovakia (there is no "houses" in post-USSR countries), plus it is much more scalable after all.

The thing is, for me the Web design, as well as washing windows is, as MJ DeMarco put it, "debt-driven, not purpose-driven". It fits into a Planasy where a system with 7-15k revenue/month (preferably 7 out of a system), but it feels like almost a mindless work. And right now, for measly returns.

 

[Kung Fu Steve]

Right now, in Ireland, but I will be moving out of here soon to country called Slovakia, because my university is there.

Not every American is dumb... I mean... *I* am a dumb American... but I have heard of this magical land called Slovakia! (and maybe I've done a small bit of travels in my day)

Half of my family is here, with me in Ireland (grandparents who were pretty successful back in USSR and mother), and another part is back in Ukraine because don't want to move or can't drive out because men can't leave the country.

So in Ireland right now. I started a Web design business because I will no longer be able to wash windows in Slovakia (there is no "houses" in post-USSR countries), plus it is much more scalable after all.

Web design is a good way for you to make money if you get good at it. Whatever skill you decide, be the best.

The thing is, for me the Web design, as well as washing windows is, as MJ DeMarco put it, "debt-driven, not purpose-driven". It fits into a Planasy where a system with 7-15k revenue/month

Yeah, well, you ain't making 7-15k/month right now so how about you start there. Then you wouldn't need to borrow any money AND you would have a roof over your head and food in your belly while you build this new opportunity.

but it feels like almost a mindless work. And right now, for measly returns.

There was a point I worked 5 jobs and slept 2 hours a night... ALL those jobs were mindless and boring and for measly returns... but I had to start somewhere... and I did all of that work for a purpose: to start my own business.

I wrote a whole post about how SMMA was "fool's gold" ... but if you read through it there might be a few bits of advice you could take... if you wanted to.

 

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[Antifragile]

I’ve been raising capital for over a decade.

Key lesson: start from the bottom of your list. Think who’s the last person likely to say yes to you? You know them! And you know they are a long shot and 99/100 times will say “no”. Yes, start there. They’ll ask questions and you get to learn and perfect your pitch. By the time you work up to the top, most likely candidates - you’ll be prepared.


And like Steve said, it starts with the 3F:

1. Family
2. Friends
3. Fools

Later on you target investors .

 

[Kung Fu Steve]

I’ve been raising capital for over a decade.

Key lesson: start from the bottom of your list. Think who’s the last person likely to say yes to you? You know them! And you know they are a long shot and 99/100 times will say “no”. Yes, start there. They’ll ask questions and you get to learn and perfect your pitch. By the time you work up to the top, most likely candidates - you’ll be prepared.


And like Steve said, it starts with the 3F:

1. Family
2. Friends
3. Fools

Later on you target investors .

I love that

 

[MattR82]

Quitting social media is a good idea, but it's also a great venue to advertise your business. Start marketing from there. Plus, if you have tons of likes and retweets on your product, investors will be more apt to think "wow, people really like this product" You can consider crowdfunding. Maybe presenting your item to manufacturers or people with similar products to yours for investment.

Quitting traditional social media as a user is so different to using it as a tool to sell to users. I always find it so strange when people say they can't quit social media because they need it for their business.

 

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[Rearden]

with licensing I can usually get a deal for a product for less than $100 so capital is less important in this business model.