Startups alternative funding options.
I know a lot of Indie Hackers are known for bootstrapping their startup projects. However, I have seen that there are other alternative funding options that is based on profit sharing. Here are some examples;
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I want to know if any person has taken this path before, and what the experience/result was?
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What is your thought about investing in a product for profit splitting?
I'm familiar with Indie.vc. I applied and never heard anything back. Which was especially weird since I've met and spoken with the guy who runs it a few times prior and we run in similar circles. Anyways - im glad it didn't work out. I probably wasn't ready at that time, but a response would have been nice (especially since they say they respond to everyone within 2 weeks).
What do you all think about starting a low-touch side business to keep the lights on and fund the startup? e.g. a run a small co-working space, etc. Ideally it works out.
But it may be another source of stress/worry and a huge distraction. Any thoughts?
I've run a co-working space.
It's now low-touch. Honestly.
Tenants have needs, they have problems, now they're your needs and problems...
How big was your co-working space?
About 8 tenants in total. You'd think that would be a small number to manage. It was harder than it looks.
If there were any truly low touch and easy to run side businesses, EVERYONE would be doing those, trust. Unfortunately, IMO, there is no such thing.
I have wondered this exact same thing, and considered turning my office into a co - working space because its 4x as big as I need. I just know how hard it is to make money when on business #1, and I worry business #2 would require the same attention when I don't even care about it.
I don't think running a co-working space is a low-touch side business. There is a lot involve which include providing and maintaining the space, internet provision, etc.
Are Upfront and Precursor in this category? Look like normal VC seed funds to me.
I think you're right. I will remove them from the list.
Besides these, there are equity free funding options for funding startups. We have put together a bunch of such programs here (https://yourfirstinvestor.com)
That looks nice but it would be more useful if there were indicators when the access is heavily restricted. eg: INCUBATE in Sydney is only open to alumni, staff or students of the Sydney university.
Thanks for the feedback @AndyDent. I will add it to the improvements list for the next release
Thanks for the list. Is it possible to indicate or categorize it based on equity and non-equity?
@stanwarri All the options mentioned in the above list (https://yourfirstinvestor.com) are equity free
Oh. That's is nice.