Are you fundraising?

There is no fixed amount on how much funding is required to start a business. My golden rule is to raise the amount that will last long enough to get your business to the next stage which could be making revenue or being profitable, for example. Use the total amount, that you calculated, and add an extra 20-30% as buffer.

The fundraise can be split in several stages: Pre-Seed, Seed, Series A, Series B and so on. The first stage is the Pre-Seed round. This is the round where you typically raise a smaller amount of $50-$250k to build your business. Requirements for this funding round are: To have a validated startup idea with great potential and to have 1 or more founders with industry knowledge (referring to the industry in which you'll build your business).

For launching a tech product, I recommend allocating a budget of $150k or more. This amount enables you to build your MVP (Minimum Viable Product) and to roll out new features after launch. Improving your product based on real customer feedback and observing actual user behaviour will enable you to build an evolving product with high value, which ultimately enables you to increase your customer base and revenue.

If you are looking to raise Pre-Seed funding for your business, I recommend building at least a clickable prototype that demonstrates how your product is going to work. Not only will this increase your valuation but it will also speed up the fundraising process as more investors will take interest in your product, assuming that you have a validated startup idea. If you haven’t validated your startup idea yet, I can help you with that.

Startup Phases

Using the Lean Startup Approach to build successful products in the most cost-effective way.

  • Fundraise

    You want to fundraise for your startup. What’s needed?

    • Validated Startup Idea
    • Clickable Prototype
    • Costs: $15-$50K
    • Duration: 4-8 weeks
  • Launch

    You want to launch your product. What’s needed?

    • Development of MVP
    • Costs: $50-150k
    • Duration: 3-6 Months

    The Minimum Viable Product (MVP)has the must-have features in order for your customers to use your app, buy your product or service.

  • Growth

    You want to grow your business, increase your customer base and revenue. What’s needed?

    • Product Updates & New Features
    • Costs: Total cost control, depending on your budget
    • Duration: Depends

    In this phase we measure and learn from your actual customers to improve your product and release new features to achieve your business goals.