Getting Money to Fund Your Startup; It Is Easier than You Think

Do you really want money (funding)? Most will rush to yes too hastily.

I believe in a model of organic growth.  I am the first to admit that this will take longer to grow, but it will be solid growth.

Look around you at companies that got funded, how many made it? How many failed?  Research shows that even the best Venture capitalists have a 1 to 6 ratios of success with companies they fund.  So, the odds are not in your favor.

I cannot say that funding is the only cause of failure, but I believe getting funding can cause failure.  Sometimes an immature management structure with a big amount of money is a dangerous thing.  Money gets wasted, focus is lost, and organizations get fat.

Startup Funding

So what is the alternative? I believe a startup is better off proving a concept, designing a structure for growth, starting off on it without any funding, and then getting funding for a specific project or program, not for the whole organization.

Now if you decide to get money, and you have a good idea, it is much easier than you think.  All you need is:

  1. A good idea
  2. Clear communication of the idea
  3. People with the right level of tolerance to the risk associated with your organization

Money is out there.  Getting it is not an issue as long as you have the right idea, and you can communicate it well in a way that aligns with the goals of the venture capitalist.

Comments (4)

  1. This approach looks fine for the US and Western countries in general,but does not fit 3rd world countries ,where investors have different mentality.

  2. There is truth in what you are saying. I can correlate it with the lean concept of MVP ‘Minimum Viable Product so that money is spent efficiently once you know your product works and it is what your customer wants, and not when it is spent on what you ‘Think’ is a good idea, rather on a basic product that has been tested with the market.
    As for funding, I understand that some 200m will be allocated as part of Jordan’s agreement with the world bank to improve the environment for SMEs.

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