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5 Comments

How do these companies get 1m+ funding ?

I have seen a lot of startups getting like 10 or 20 million-plus. How do I get funding like this?

  1. 2

    You generally get funding of 1 Million plus because :

    You are already well known in the startup world and perhaps had a previous exit. Investors can trust you regardless of your new idea.

    OR/AND

    You have already shown Product validation and Product Market Fit. Investors can see a path to your startup becoming a huge company and they are willing to gamble. You have a great team in place especially founder/co-founders.

    If you are not in one of the 2 above, it is almost impossible to get funding of such size.

  2. 1

    You have to differentiate. Small or seed rounds are easy and I'd say easier than sales and much easier than finding a proper job. But it's sales and hustle and being 24/7 on. I promise you, if you try to raise from now on, you will end up with some round in the next 12 to 24 months. There's more money out than founders. Bigger rounds are often not that big, they're pumped (buying out old/pesty investors) or they have strings attached like you get now 5m and if you achieve these impossible goals you get 15m more. Large rounds have huge signalling power, so people like you think, WOW that company must be good, let's try the product. I think everyone should once raise money and have a VC-backed company because then he knows that he never again wants this. Raising money is a fallacy.

  3. 1

    You get 10-20 million funding when you and/or the VC know your business is worth at least double that. It's as simple as that.

    There are hacks, but you got to be a great hacker, an achievement in itself. Generally, you go the long and hard route, folks I know personally who got this kind of funding or straight buy out worked for years on something that had huge potential of return and somewhat had executed well so far. Think minimum 100x potential, that's what VCs want since they don't only invest in one startup.

  4. 1

    Easy as pissing. Show your revenue, the ways of scaling your business, be clear and precise all your numbers- that’s it! Investors will come to get 50x with your help)

  5. 1

    With a lot of networking! This is usually not their first round of investment but more like Series A. It typically takes about 200-300 meetings with VCs and angels to get that of money unless you are a serial founder with 50M+ exit in the past, then it can easily take only a few phone calls (I show this once IRL). To be honest, you do not want that pressure unless you really believe and have some validation that you can reach 1B+ valuation in the next 7-10 years.

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