When to start seeking funding from angel investors?


3

I'm currently bootstrapping my startup with about $25,000 of my own savings. We've validated the idea by talking to potential customers well before we even started developing the product.

We're close to completing the MVP and begin selling it to the customers that showed interest and want the solution.

My initial investment will only last for another 2-3 months at most. At what point should I start focusing on getting funding? Since it's a time consuming process, I've been putting 100% of my time and effort into the actual product till now.

Are there any general guidelines of when it's ideal to start fund raising?

Funding Venture Capital Seed Funding Fundraising Angel Investors

asked Jun 6 '14 at 01:41
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Helen Lawrence
17 points

1 Answer


2

I would base it on how must runway you have with your cash.

First, you don't want to be desperate when you start looking (i.e., so cash starved that you'll accept a bad deal just to keep things above water), and Keep in mind that a financing does not close overnight once you find an investor. It will probably take a few weeks (terms sheets, lawyers, document review, diligence, etc. all take time). My suggesting would be to start sooner rather than later.

answered Aug 4 '14 at 13:58
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David Wittmann
161 points

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Funding Venture Capital Seed Funding Fundraising Angel Investors