Watch Out for Dodgy Seed Capital Raising Fees
As many of you know, I’m not really a fan of using money middle-men to raise seed capital or any capital for that matter. Capital raising should always be the responsibility of a senior team member who hopefully has connections. When you hand over this key function to outsiders the results are rarely good.
These days the lone “middle-man” is often replaced by a group such as an angel investor club. The problem here is that these groups tend to create overhead that then needs to be covered. Moreover some are for-profit. This can lead to a Ticketmaster-style cascade of fees. Some well-know entrepreneurs are now leading a charge against groups that overcharge cash-starved entrepreneurs for the simple opportunity to present. Continue reading
How to Quickly Raise Seed Capital
Entrepreneurship is like a 25-level computer game. If all that you can think of when it comes to startup financing is “write a business plan and shop it around to strangers,” you’re stuck at the bottom level. There are 24 more levels above you.
Savvy entrepreneurs know how to create startup funding using various tactics. One of the classics entails using what is called “mobilization capital” obtained from the startup’s own customers. In a nutshell, you get your prospective customers or clients to supply you with the capital required for you to then deliver your product or service.
Here’s a story of a how an educational startup funded its launch using this tactic: Continue reading