The formula for raising money is…

March 22, 2011 § 4 Comments

that there is no formula… If I have learned something about entrepreneurship in the last months, is that there are only opinions and points of view, not general rules or To-Dos.  Of course they are principles but this are always context related and at the end all depends on the execution capabilities of the entrepreneurs.  Thats how entrepreneurship works. Starting is hard, but once you are in and get to do an startup, raising money for other startups become much easier.

Yesterday we had the successful entrepreneur Jorge Mota(TwitterLinkedIn) in class as part of the IETECHSTARTUP sessions with Enrique Dans. Jorge shared with us his experience and some basic principles about raising money. I am just naming some few of them:

  • Scalability of the business and quality and commitment of management team is key.
  • Dont give much of your company at the beginning. Give 30-35% of company in angels round (1-3 mill) and for VC no more than 30% not less of 15%
  • Join a startup and learn if you can start your own (remember what we said about the hard that is to start a company?)
  • Have ego is good, but not necessarily from the beginning!
  • Revenues are not always necessary to raise money!
  • Focus on solving a real problem! Develop the process. Then learn to communicate to engineers and finally to customers

They were much interesting stuff Jorge told us, to see some quotes, just follow the twitter hashtag #IETECHSTARTUP.

Again, please note that there is not right or wrong approach for raising money if you are planing a startup. There is also no only one investor type. For you own sake, when raising money, find an investor that you can personaly deal with. Someone that share some kind of values and you will be good to go.

foodieSquare is actually in the raising money process, so, if you know of someone interested on supporting our goal of becoming the European marketplace for high quality artisan food, then let us know!


§ 4 Responses to The formula for raising money is…

  • Anthony Hess says:

    I’d be interested in hearing more how the fundraising for foodiesquare goes. Do you think it would have been a better idea to raise the funds a few months ago, or do you think you guys are right on with timing?

    • Guerson says:

      we already started but have to intensify the process. We have set a goal and hope to achieved it. The thing with startups is that you are creating…from scratch….so any plan you have 99.99% will not come true =)
      You just have left to keep on fighting and follow your vision.

  • Guilherme says:

    I wonder after having two very different perspectives from Julio Alonso and Jorge Malta how do you guys intend to obtain the funds for FoodieSquare. It would be interesting to have your view on it.

    • Guerson says:

      and we still have some speakers more to come! =)
      As I wrote, these are just points of view. There are so many paths to follow.
      In our position, because it is our first startup, we will try all paths! =) We will try to convince every one we meet willing to invest. Of course we aim to have an investor that share our values: Loves food, Supports small & Independent producers, Is in favor of ecological trends, etc.
      You can keep hearing more and more tips and hearing amazing quotes from successful people and actually never end taking notes…important is to start and learn in the process. There is no other way. These lectures are just meant to inspire. Learning you can only do when you try it for real. =)

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