Following my post yesterday on ‘What Investors Really Want’ I have been speaking with a number of people about the issues around funding and the stages that a startup moves through.
I drew the diagram below as a means of crystallising my thinking (you will begin to notice that I like whiteboards) and thought you might be interested in having a look. It outlines the process that is advocated in Running Lean and was alluded to by Sandy McKinnon (the VC) on Tuesday night.
This seems to be the common approach in the startup scene reflected both in the literature and what investors are looking for, however in my short experience I have spoken to a lot of startups and a lot skip right over the 1st stage.
While I am nowhere near looking for funding this is the plan I intend to follow. However, I would love to hear from those who are more experienced and who have gone through it on both sides of the fence (investors and startups) as it throws up a number of questions. Is this too theoretical? Is this how it works in real-life? Is this the way it has to/should be? Do startups risk their potential for success looking for investment too early in the process i.e. before they have achieved Product/Market Fit?
Where in the process are you?
The learning continues….