More Fundraising

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Transcript

And one of the misconceptions of scaling and at this point in your startup is that you no longer need to raise money. Because you say you just raised $500,000. Okay? You just raised 500,000 hours, you're growing, you have a partnership, and you think that you're good to go wrong. You have to keep fundraising, for example, snap, okay? They raised roughly $500,000 in 2012.

Look at how much soon after, they raised $12.5 million. And just a handful of months later, they raised 80 million, and then another 20, and then 50. And then, you know, another year later, 485 million another year later to not even six months, not even three months. I can't do my math right now. Because there's just so much money being thrown around, making me go nuts. And then, you know, in May of 2016 1.8 billion, I mean, they just consistently raised money every couple of months.

And that's what you have to do and I'm going to tell you why. Because, let's say You raised this $500,000. In 2012, you're going to be burning through that money immediately hiring people paying for resources, marketing money developers. So if you don't start raising money right away, you're going to run out of money, and you're not going to have enough to pay for your employees and your company is going to be bankrupt. So by raising 12.5 million a year later, not even they were able to continue growing and continue growing and continue every single time they raise money, they were able to hire more people, you know, be able to handle more bandwidth become more scalable, advertise that, you know, marketing to the, to the advertisers and whatnot. So, this is a misconception, you have to continuously fundraise which means in your PowerPoint presentation, all your documents, everything that you show investors, you have to change the numbers of what you're raising.

So say you're raising 500,000 in one presentation. Next one should say 12 million or whatever you're raising. And all your documents have to be changed now to show your growth. So you're growing Both charts have to be different. You know, your presentation has to be different because now you say now we've, you know, a year ago, we had this now we have, you know, 10 developers instead of two developers and we have, you know, a marketing team that we were in the press on USA TODAY AND TechCrunch and whatnot. So you need to kind of show your progress over the past year and show you know that you're valuable and that you are worth getting more funding.

So you have to keep evolving your presentation and your documents and keep raising money consistently.

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