Wondering where will the money come to fund your next venture? In this video, I want to share with you 8 different ways to overcome this challenge and fund your startup.
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When I started my SaaS (that stands for Software-as-a-Service) startup Flowtown my co-founder Ethan and I had a tough decision to make...
How do we fund the company?
Even though I had the capital to self fund the whole thing, as I had just sold my previous company Spheric, he was 23 and didn’t have a penny to his name.
So this is what I did...
It was Friday, and I said, if you can find a way to raise $15K, I would fund the rest.
On Monday he called and said he had the money!???
That’s when I learned how great of a person he was.
You can listen to how he did it in this week’s video, alongside the 8 other strategies you can use to raise money for your startup.
I go deep into all 8 strategies in the video…
But if you’re looking for a quick primer, here are my 2 favorites:
1) Crowdfunding: I like this one because it also has the side effect to help you validate the idea as well. If no one buys, then it might be an indication that the idea is bad, or that you packaged it wrong. I’d rather find out quickly before I invest a ton of time and money to fix things.
2) Venture capital: Even though most people think VC’s are horrible, I’ve learnt that there’s something powerful to having incredible investors. It’s a quick way to establish authority in a space, it provides a sense of confidence (if you get the right investors) that you know they’re in your corner, and you get the positive peer pressure to report your numbers to an external group of people.
You might of expected some kind of secret government program, or easy way to get banks to lend you money, but I’m a big fan of testing and validation...
And nothing works better to prove you have an idea worth pursuing than having others take their hard earned money and invest in your business.
My good friend Clay Hebert, a crowdfunding expert, once said “... the cost of failure will eventually go to $0 because of crowdfunding.” and I’m a big supporter of this.
So if you have big dreams, there’s a good chance you’ll need some money to fund them.
Be sure to study all 8 of these strategies and use them accordingly.
If you have any questions for me on how you should use them, be sure to leave a comment with your questions - that’s best way for me to help!
Dan “helping you raise money” Martell
Don't forget to share this entrepreneurial advice with your friends, so they can learn too: https://youtu.be/8-9176AxXVo
ABOUT DAN MARTELL
“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one... not two... but three tech businesses: Clarity.fm, Spheric and Flowtown.
You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.
An activator, a tech geek, an adrenaline junkie and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives - but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.
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