Should I raise angel funding or launch first?


2
When building a company in financial services, trust is important. It's tough to launch a half-baked product. Is it best to wait until you have users, or raise prior to launch. In my case I have a strong team and have gotten a lot of interest from investors so far.

Venture Capital

asked Mar 5 '14 at 22:56
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User33826
11 points

1 Answer


3

You should always try to launch first. Several reasons for having some traction before approaching investors:

  • You've validated your business with paying customers.
  • Reduced risk for investors so you're more likely to get funding.
  • Better terms. You get to keep more equity / control of your business if you don't raise money too early.
  • More time spent building the business early on -- raising a round is a time consuming process.
answered Mar 6 '14 at 00:09
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Nishank Khanna
4,253 points

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