Getting started on a new startup requires initial capital. Sometimes there can be very high barriers to start a company in capital-intensive verticals. Most of the time, you must own at least $5k while founding your startup. After launching, you also need sufficient money to survive until your business generates money. (Generally, it takes around six months.)
Raising money from venture capital might be more complex when you are at the very beginning of your startup journey. Especially if it is your first entrepreneurship experience, venture capitals may want more substantial social proof, and your product might not be ready for that. Although second and third-time founders can find venture investments more quickly (even in the idea stage), most founders suffer from the process of raising money. Here are some solutions to deal with funding issues in the very early stages.
Getting into an accelerator or other entrepreneurship programs like incubators can reduce your initial costs significantly. Their offerings mean great value for your startup. Ranging from perks to mentorship sessions, participating in an accelerator program boosts your growth and helps you get over death valley. Accelerator perks include a bunch of invaluable tools for your business to be run. Amazon Web Services is one of the most popular ones among them. It reduces your cloud costs significantly and makes it a lot easier to start a company. Accelerator benefits are not just limited to perks; mentorship sessions and training also make outstanding contributions to your startups. Thus, you prepare and get ready to raise VC funding.
At first, it might be a bit harder to get money from those who have not met you before. Most venture capitalists do not prefer to invest in founders they have not known for at least six months. However, this habit is changing today because of the highly bullish environment in venture investments. Therefore, you can talk to your relatives and friends for initial funding. They have known you for many years, and they believe in you. They can invest in your startup much more quickly than venture capitalists do at the very beginning. This can be the lifeline support for your company to start and run healthily. With this first funding, you can create and improve your product and make it ready to raise money from established venture capitalists and other investment funds.