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Drgrafenbergmd's avatar

How should I fund my startup?

Asked by Drgrafenbergmd (387points) May 8th, 2010

I missed you Fluther, I was gone for a while because lately I have been studying many things online, and from all of this (self motivated & extracurricular) studying, I have decided that I want to start a learning2.0 website. The central function of the site is going to be helping students find curriculum quality online materials which they can then use to learn about whatever they are interested in. I would like to get teachers involved as guides for the students, and also as e-tutors. I personally am a education system defect (6 highschools a GED and on year 3 of my associates) so I feel that there is a need to empower students, by engaging them with education that they are interested in, if we are going to solve humanities problems, that is. There is a dire need for innovators in our world today. With the looming social and environmental issues, we need miracles in many forms, and I believe that this type of learning2.0 education is the key to inspiring and empowering the heros of tomorrow. Basically, this is my plan to save the world.

Now that you have an idea of my goal, how should I start turning my dream into a reality? I have a list of web2.0 tools, I have a good missions statement (save the world), now I need funding to scale this idea. What are some ways to fund this?

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5 Answers

YARNLADY's avatar

You might be able to find some answers in this ehow article

sferik's avatar

From Venture Hacks, a blog you should be reading: “First, build a minimum viable product, put it in front of customers, and learn something about product/market fit.”

This phase of development should cost you next to nothing. If you need some money for living expenses, borrow it from your friends and family (or a bank, if you must). Do some odd jobs on the side. Perhaps you have some savings?

Once you’ve found a market for your product, you’ll find that you won’t be able to do everything you should be doing by yourself. You’ll need to hire your first employee, which will require some capital. Unless your product is already profitable, you’ll need to pitch an angel investor or an early-stage venture capitalist (VC), but I would recommend waiting as long as you possibly can before raising money from an outside investor. This will allow you to raise more money on better terms.

Alternatively, you can start by pitching an idea investor or raising some seed money, however this is typically done more for the connections they bring than the actual capital they invest.

Drgrafenbergmd's avatar

@sferik Thanks a bunch, Im going to pick over this for a while
@YARNLADY I will check it out, thanks!

malcolm.knapp's avatar

Kickstarter is a website where you put up a proposal, and funding target, and a deadline and then people can support you from all over the internet. It would be a good way to get funding for an alpha site.

skadu's avatar

Get a partner who is good at what you are not, in areas that your business needs most. Then both of you go to work and get the business to the point that it has value – more than just an idea – maybe a few products and customers. Then ask for funding with some suggestions given in this thread. Don’t ask for funding too soon or you’ll end up risking too much or giving the whole business away.

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