Statistically no one gets venture capital. The ratio of the number of companies started each year vs. the number of companies funded is minuscule. For most companies it’s just plain unrealistic. So, how do the 99.9 percent of startup businesses get funded?
The financing strategy is bootstrapping in stages based on iterative phases of success and only doing what must be done to get to the next phase with minimal capital. This is a resourceful and practical approach:
- Start with the customer
- Establish the critical path items for at least the first stage of the company or project
- Define what it takes to validate the market and prove the company’s ability
- Develop a list of where and from whom you can get the resources needed (i.e. who has a reason to care about my company’s success)?
- Assess – “Can we bridge the gap with friends and family and personal investment?”
To read the full, original article click on this link: A startup financing strategy that works | Analysis & Opinion |
Author: Kenneth H. Marks is the founder and managing partner of Raleigh, North Carolina-based High Rock Partners. He is also the lead author of the “Handbook of Financing Growth”. The views expressed are his own.
