I stumbled on this great documentary (available on YouTube) with great insights on the startup journey. I particularly related to the emotional side of impacting family while hustling, and maybe you will relate as well. Enjoy!
Topics Covered: venture capital, startup capital, seed capital, bootstrapping, idea generation, business model, pivoting, technical co-founders, scale, supply chain, cashflow
Full Description: The story of three of Australia’s fastest growing startups – SafetyCulture, Vinomofo, and Canva – as they scale from garage offices to millions of users and worldwide impact. The New Hustle follows the personal journeys of the founders as they develop and iterate on their idea, attempt to bring it to market, raise capital, and face countless challenges along the way.
Runtime is 53:56.
Despite all the media focus on Venture capitalists and super angels, the vast majority of seed and startup capital still comes from what we affectionately call the 3Fs. These are family, friends, and fools (aka dentists).
VCs only provide 0.05% of all startup funding while angels provide 0.91%.
The rest has to come from the 3Fs, personal assets, and creating financing.
How to Get Startup Capital?
Here are the top 10 tips for raising startups capital:
Startups are a Team Sport: Have a team of at least two people with complementary skills and talents show investors. For example, a great combination is where one has a strength in closing sales while other has a strength in ensuring that the product or service purchased is delivered as promised. A team of three is even better. An investment in a company with just the founder is too high risk for investors. What if the founder gets hit by a bus a few weeks after the money is invested? Chances are it’s a write-off.
Is Seed Capital Different From Startup Capital?
Another email came in over the weekend asking what the difference is between seed capital and startup capital.
To be honest, it’s a bit of a gray area where people tend to disagree over the definitions. Some claim that both terms point to the same stage of funding and are, therefore, interchangeable.
I prefer to make a distinction as follows:
How to create startup capital
Even in the new millennium with all the advantages that its offers such the Internet, crowdfunding, and social networking, it’s still extremely challenging to raise startup capital for most ventures. Allow me to explain why. It’s a catch-22 situation because the smart angel investors and venture capitalists want to see some proof first that you have what it takes to be the successful entrepreneur who makes them money instead of losing it. This is reasonable since most people lack the necessary acumen, knowledge, and mindset that one needs in order to get past all the obstacles entrepreneurs are normally always confronted with.
On the plus side, the traditional route to success for entrepreneurs has been to create their very own startup capital. There are a number of obvious ways to do this: