Recapping Legal Stuff Explained 2.1: Growing and Funding Your Business
Paul Rubell talked about different aspects of growing and funding start-ups at yesterday’s LSE 2.1 Event, here are some of the points he emphasized:
On raising capital…
- Make a 3 month budget by identifying work you need to get done, then assign these tasks $ value.
- Raising too little is a problem - that guarantees failure.
- Raising too much is a problem - you’re giving away too much of your company and investors won’t be happy to see their money dormant.
On your contribution…
- Sweat equity (investing all of your hard work) is mandatory.
- Investing all of your money is attractive to investors- put your savings, credit card advances, home equity loans etc. into your business.
- Investors want to see your sweat & your $ - they want to know that if you fail, you’ll be in financial trouble- this shows how much you believe in yourself.
On showing your work…
- “tense” is important to business- make sure to have accomplishments in your past that you can point to, instead of only saying “in the future, I will…”
- Identify milestones and accomplish them- use metrics to show your work (e.g. # of unique views, downloads).
- Use your unique strengths to show how your business model is different.
Did you attend this event? Let us know your thoughts in the comments!
Did you miss it? Come to the next one!