How do you get VC or angel funding for a startup idea?

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Research VC's and investors who funded ideas similar to yours.

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Make it more than an idea first

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Ask for it. Start hustling and asking your contacts.

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From a VC- hit up your network of angels and generally people earning well. Always will be easier to build a first iteration of a minimum viable product. Research your market and users well, listen to them and keep iterating. Then for the VCs you’ll have to share a bit more for me to help you here- is it b2c or b2b? Is it consumer tech vs deep tech? Depending on the level of sophistication your VC round metrics requirements will vary a lot as well as the pool of investors.

An incubator at idea stage or an accelerator at some minimal product (where you can onboard some users) can help you bridge the gap to investors.

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Don’t forget to cup the balls.

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As an Angel, most investment ideas come from other Angels I know, however a good portion is cold emails and LinkedIn requests from people. I don’t usually invest without some sort of warm lead (most ppl look for warm leads), but I can tell you what most Angels and seed fund VC’s are looking for.

First is to look for where you are with your idea. For instance you might already have an MVP and some anchor customer (assuming SaaS as the idea). This is a good start to get you your seed round some interest when pitching to an Angel or VC. If you are one of those people with just an idea look for $1 mill or more in cash to start your biz good luck, you will only get that money if you started a previous startup who had a successful exit.

After you have some sort of traction and the product or sales level then you can go on to raise your seed round and use the moment of the product development or sales to entice VC’s to the growth train.

To reach out to VC’s and Angel’s you will need follow what others have said and to use your network, even cold emails/calls if you have to, but make sure you have traction if you are looking to go the cold route.

So to summarize:
1. gain product or sales traction
2. network to build warm leads
3. cold call and cold email for secondary leads
- repeat steps 1 to 3 till you close your round, especially step 1.

Having a great mouthpiece with a deep network always helps. ABC - always be closing.

The process varies greatly depending on what your product is (eg. SaaS v. cannabis manufacturer), but I’d say the most important thing is something no one has mentioned: bring on a cofounder that believes in the idea, particularly one with pertinent accolades/experience.

Anyone can make wild claims about how great their idea is, but if you can’t even convince one other person it’s good enough to help you build it, you’re certainly not going to convince someone to give you $1MM to try.

Second: then prove it’s a good idea by making an actual sale. Too many people want investment without even trying to make a sale first. Nothing says this MAY be a viable business like convincing a stranger to pay for it, but not being able to convince a stranger to pay for it says a lot more.

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