8 Funding

Question 1

Why need money

Answer 1

• capital: tool to operate & grow faster and better

Question 2

3 things investor look at when investing

Answer 2

1. return
2. payback period (when money back)
3. better return than other investment? (Net present value (NPV), internal rate of return (IRR))

Question 3

Obligation of investors

Answer 3

De-risk: e.g. portfolio

Question 4

Types of funding

Answer 4

1. FFF (family, friends, fools)
2. customer/partners
3. grants/competitions
4. seed/angel funding
5. 2nd time founders, accelerators
6. Venture capital, CVC (corporate venture capital)

Question 5

Will emotions or technology drive sale?

Answer 5

Emotions

Question 6

Misconception about evangelization

Answer 6

Some areas require lots of user education
-> easier to sell cure than dream

Question 7

What do you have to understand about ur business model e

Answer 7

Network effect driven?

Question 8

Escape velocity

Answer 8

Manage to self sustain

Question 9

What do you need to reach network effect

Answer 9

Minimum viable community (1,000 true fans)

Question 10

Is it important to analyze

Answer 10

Yesss, measure: feedback/data non stop

Question 11

Strong pitch

Answer 11

1. clear problem
2. unique solution
3. market opportunity, TAM (total addressable market, trends
4. team
5. business and revenue model
6. traction & milestone