What are the best ways to raise seed money?
I am working on a startup project in Europe. I have written the first draft of a business plan and I have a prototype ready. Now I just need to hire one or two people to get momentum and move into production. My main problem is that I have limited personal investment available and my family is a no-go area for money. For now, all the investments I find in seed money in France (where I currently reside) are "matching" investments, or 200k€+ investments of proven business models. I do not have any big possessions to secure a loan. What is the best way for me to find a loan or partial investment of up to 30-50k€? Thanks for the advice.
If you don't have possessions to secure a loan, you obviously need an investor. I am sure that you examine that question. My advice is about that you should look on the investors from my country (Ukraine). I know that many businessmen in Ukraine is looking the way to invest their money in EU business projects.
Also if your startup in IT sphere, you can start think about to launch it in eastern part of Europe, where costs are lower than in France. Ukraine, Poland, Romania, Belarus have strong IT specialists. The location is not so far from France so you can control the business remotely and time to time visit the office personally. The sales team can be located in France.
Thanks for clarifying Francois. I'm curious as to the need for a marketing assistant for a startup. Are you preparing to go for angel investing? Have you got an organizational chart and cash flow chart for the next six months? A question I often ask myself is 'how good is good enough?'. This has saved me and my clients alot of time and money. What are the best and worst case scenarios if you didn't get the money? What would they be if you did? Which of those two options are you most willing to bet on? If I was you and came to you with these scenarios what would you advise me to do?
I know...so many questions. It's hard to see the forest through the trees most days!
Please design video CD of your master plan and put it on social networks with request of investment,...
You are going to need a better business plan with full cash flow projection with worst, realistic, and best...Same with revenue and be sure you have a mission and vision statement with your research on how and why...Try local funding and crowd funding
In the Netherlands crowd funding for that type of figures is very successfull. Probabely in France also available. Otherwise there are in many countries a lot of private investors try to find French LinkedIn group entrepreneurs and investors.
You need to proof your business plan / model and your future income from it. I have a free guide book that is scientifically proven to help with this:
With scientific proofing, any venture capitalist will be happy to loan you the money.
A few points
Are you outsourcing production to a third party.
Is your market place viable
Have you fully tested the potential market
What is your immediate competition
Just a number of points a potential JV Partner would want to know, look for people with your JV opportunity may be two of three...
have you reached out to venture capitalists? The other option is to talk to industries that may be in similar businesses and would not mind risking a small amount to see if something came of it.
Francois, if people are the core of what you need money for, finding people who will work with you for a piece of the company or on a revenue sharing basis is another way to fund what you are doing. Loans are a very risky way to go, unless you have a solid business and a ready market for your product that will begin to churn cash out right away.
Crowd funding works for some folks. I don't know much about the French entrepreneurial community, but here in Tampa FL we have a number of business incubators that will take you in and help nurture the business through the start up phase.
I wish you luck!
CrowdFunding is a great idea - Remember though, Reward-based crowdfunding works in the B2C marketplace. Let us know if you need any additional information/guidance.