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November 29, 2016

[Video] What do you need to start approaching investors for seed capital? – Bobby’s Minute, ep. 66

Contrary to what some people think, you shouldn’t approach the investor only when you need money. Here’s what you should actually do.

Discover in another video how much seed capital your startup needs.

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Transcript:

What do you need to start approaching investors to get seed capital? You really need just an idea, you know? I would approach the potential investors as soon as possible. I would go to them and tell them: “Look, I have this interesting idea that I want to build.

Is it okay if I send you updates in the future (like once a month) with how the process works?” The thing is, most of the investors will say “yes”. After all, this is their business: to find good teams, good companies, good products, so they will probably say “yes”.

Once you have an MVP, maybe some users or clients, then you approach the same investors which already know about you, because you kept them updated while building the MVP, and you tell them: “Look this is the product that we have, these are the numbers that we have, so we might need some money to keep growing”.

And because the investors already know about you, because the investors followed your evolution, because they know that what you say will be done, they will be more open to the idea of financing your company. So, try and find potential investors as early as possible.

What you shouldn’t do is try to get money from them as early as possible; just keep them updated and bear in mind that no matter what books or the movies say, most of the investors don’t invest in an idea; they invest in a team, they invest in a product and they need time to know that specific team or the specific product.

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