Startup Funding Espresso – Pre-Sell Your Product To Raise Funding

Pre-Sell Your Product To Raise Funding

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startups raise funding outside of family and friends after they have a product with some revenue.

Founders who have a track record of building and selling startups can raise on an idea.

Everyone else must validate the business before investors will consider funding it.

Pre-selling the product is one path to funding a startup.

This is commonly used in the crowdfunding space, where a founder raises funding to build and sell a product.

The same concept can be applied to venture-level businesses.

One can sign up customers with a $1K prepayment to be part of the product-building process.

This works well for funding software startups.

This creates a list of interested customers who paid something to engage with the process.

In addition to a small investment, the founder could also ask for a half day each week to build the product specification and gain feedback on the results.

Just as in crowdfunding, where the average investment ranges from $15 to $100, so in the tech space, one can sign up customers with a nominal amount of $1k to $5K.

Consider pre-selling your next product to engage a customer base.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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