I have had 13 versions of this conversation in the last 3 weeks with savvy startup founders in Phoenix, Dallas, and Austin.
I’m working on a cool new software startup with a team and we are almost finished with the product. We don’t have live customers or revenues yet, but we are trying to raise angel or seed funding.
I don’t know any experienced angel or seed fund investors who invest before some revenues or a sellable product. You’ll have to go to friends and family or your savings/day job to fund it before then.
We don’t have any friends or family who can invest. And I don’t have funds to invest from my day job or another business. Where can I find investors we can talk to?
As I said, I don’t know any experienced tech investors who invest before revenue traction unless you have some other amazing traction story. Stop wasting time on serious funding for now and spend your time on getting customers who will pay you. That can fund part of your expenses and it’s the main requirement to get savvy funding.
I’m still looking for investors who will invest pre-revenue (with an unproven MVP). I know this will be big!
Who is telling these passionate and committed startup founders to spend most of their time trying to get investors before some proof of customer traction and revenue?
When you get customers and revenue first, you can decide later if outside funding even makes sense for your business.
For most early software startups, serious outside funding doesn’t make sense, despite what “everyone says.”
+ Just heard this today from my friend and Trainual CEO Chris Ronzio on the AZ Tech Podcast— his best advice for startup founders: get customers, not investors!