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8 Comments

Raising capital without the actual app already built?

Hello, I was wondering lately if it is possible to raise capital from investors in a very early stage, without the app already built out completely. I don't talk about 10M+ fundings, but more like <1M funding to get things started fast.

Is a good pitch deck and business plan, as well as proof of profitability enough? What do I need? Where do I find such investors?

on March 24, 2020
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    Id say right now you're outta luck. There's very little money going in the investment space (assuming you wanna raise from the USA). Right now most successful term sheets are given to people that are growing and revenue positive imo.

    However, I think I would echo what @volkandkaya below, what is stopping you? With the amount of no-code options out there, you could easily set up a small MVP without too much time/financial investment. I would also recommend maybe using something like Figma/Sketch or any mockup tool to make mockups and put them on a landing page with the ability to have users sign up for your platform when it launches. Those are metrics you could take to a VC to help your case.

    Finally, I would also look at angels (although angel investing has overall gone downhill recently). Angels are usually those who fund ideas that are this early in the stage. However, they are betting on you as a founder usually rather than the idea (which is bound to change an pivot often).

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      I'm actually building a very lite version of the app (which will be released on the App Store also), the idea and possibilities behind it are much bigger tho. The app uses AR and Machine Learning, so making an MVP with No-Code is not a possible option (or is it?)
      Thanks for pointing me to Angel Investors, I'll look into that and research a bit!

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    Not trying to be harsh, but if you ask this question, the answer is a flat no.

    If you had a massively successful startup before, or even a massive growth, crash and burn maybe. But then you wouldn't ask that question here.

    If you have an ivy league degree, solid idea, pitch deck and team in silicon valley, maybe. But you wouldn't be asking here.

    For the 99% heavy funding in idea stage is not going to happen, though bootstrapping from idea to validation is far easier than ever now.

    If you can't validate your idea yet, how do you validate investment?

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    Do you have customers? Or pre revenue? Or customers ready to use the product, verbal or contract commitments? (Assuming b2b)

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    I wouldn't rely on venture capital with the markets as they are right now. I'd double down on bootstrapping.

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    What is stopping you from building an MVP app?

    If it is because you can't find a technical co-founder how do you plan on building a company that will scale to 100m+?

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      So if it‘s just an MVP that shouldn‘t pre a problem at all. But what does this MVP has to do? Should it have customers and/or revenue? If so, how much and is it okay if the MVP really is a very lite version of the actual idea?

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        MVP is usually the smallest thing that providers a lot value over existing solutions in one thing.

        Not sure on the numbers. Us indie hackers believe in bootstrapping :)