Questions

I have recently decided to shift a focus (product/market fit) for our startup based on feedback we received while selling a previous product we built. At what point is it appropriate to begin a campaign to get in touch with early seed investors?

It largely depends on the amount and the business type.
Investors will like maximum returns for as little risk possible so the earlier you go for funding in your launch plan, the harder it is unless your business plan is so strong that any investors will want to take the punt.

Investors typically will want to see how much you invested yourself and how far you tried to go prior to raising funds.

The best time to approach early stage seed investors in my opinion is when you are market ready and are just starting to show case the proof of concept with early market feedback.
Of course this depends on your business plan; how much growth/ market potential there is, the ROI on offer, the exit and timings around the exit and any risk mitigations you can offer to investors (for instance in the UK, you can get small enterprise investment scheme approved, which provides 75% investment protection).

There are many non equity routes you should look to explore ahead of considering equity; obviously the earlier you offer equity, the more you give away early.


Answered 8 years ago

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