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Hey guys was wondering how people are funding, lets say gopro? when they first go out, I highly doubt they received a million dollar loan to advertise and manufacture all those cameras. Same thing with other smaller brands. like drones...lets call it drone X. noticed theres a new drone that flys above you, avoids obstacles, and follows you base don a gear you are wearing. Was wondering how things like this are funded
Hey guys was wondering how people are funding, lets say gopro? when they first go out, I highly doubt they received a million dollar loan to advertise and manufacture all those cameras. Same thing with other smaller brands. like drones...lets call it drone X. noticed theres a new drone that flys above you, avoids obstacles, and follows you base don a gear you are wearing. Was wondering how things like this are funded
There are any number of venture capital firms out there willing to take a risk- after they check you out, guess as to how worthwhile the idea is and get a piece of the action.
Mitt Romney's Bain Capital is probably the most famous.
Most individuals boot strap, ask friends & families for loans etc.. when starting out. Also keep in mind that some of these global brands have been in the works for many years before they gain their market leader positions.
You mentioned GoPro. Did you know that GoPro was started in 2002?
"The company was founded by Nick Woodman in 2002. Woodman started the company following a 2002 surf trip to Australia in which he was hoping to capture quality action photos of his surfing, but could not because amateur photographers could not get close enough, or obtain quality equipment at reasonable prices. His desire for a camera system that could capture the professional angles inspired the 'GoPro' name.
Woodman initially raised a portion of the money for his company by selling bead and shell belts for under US $20 out of his VW van and later, fashionable camera straps. He also received over $230,000 in investment from his parents"
On another note, some entrepreneurs make it look easy to the public eye but keep in mind that most have failed a few times before reaching success.
The people providing funds would have the capability to do so. And if we see then this is also necessary as many startups or event are started because of people funding in that respective firm.
Most individuals boot strap, ask friends & families for loans etc.. when starting out. Also keep in mind that some of these global brands have been in the works for many years before they gain their market leader positions.
You mentioned GoPro. Did you know that GoPro was started in 2002?
"The company was founded by Nick Woodman in 2002. Woodman started the company following a 2002 surf trip to Australia in which he was hoping to capture quality action photos of his surfing, but could not because amateur photographers could not get close enough, or obtain quality equipment at reasonable prices. His desire for a camera system that could capture the professional angles inspired the 'GoPro' name.
Woodman initially raised a portion of the money for his company by selling bead and shell belts for under US $20 out of his VW van and later, fashionable camera straps. He also received over $230,000 in investment from his parents"
On another note, some entrepreneurs make it look easy to the public eye but keep in mind that most have failed a few times before reaching success.
Bootstrapping is a good way to fail for any company larger than your boutique business. For every company such as GoPro you can name, there are dozens upon dozens of companies that simply run out of gas because they lack the ability to market or grow. The more likely answer is that the bootstrapping entrepreneur enjoys a little modest success until they're noticed by a larger, well-funded company who swipes their idea and runs with it.
Here's the thing. If you aren't capitalized to market yourself well from the outset, chances are you never will. That's because many startups think of the marketing budget as a luxury to spend money on down the road, like the corporate car or the swank offices. They fail to see that marketing is the fundamental need early on in the startup's history, for you have to convince potential buyers to depart from their usual buying patterns to purchase something completely new. I advise a lot of entrepreneurs, and I can't even begin to count the ones who kick themselves for lacking the balls to ask for VC capital when the iron was hot.
I'm consulting with three startups right now. Maybe one of those three will make it. But we're doing it with strategy such as a Kickstarter campaign and VC. If any one of them tries to do this on the cheap, I'm out of there. Because I've seen way too many startups make the same damned mistakes over and over again. It's a waste of my time and a waste of their energy. I don't have to be a party to it any more.
What i meant by bootstrapping was funding the startup during the initial phases. The way i look at it is that i would rather approach a VC/angel investors with at least a prototype to show them that im serious and have some skin in the game rather then approaching them with just an idea.
I think this approach not only shows potential investors that im serious about the venture but also some other aspects of entrepreneurship traits. Example perseverance, forming a team, sacrifice etc...
From your experiences with startups should i change course?
also, ok so how about example of this. I bought this pressure water cleaner. Noticed the design was quite different than the others. water pressure washers have already been invented, so how is this guy able to manufacture his own brand name pressure washer? its not like he has a manufacturer line in his back yard ha ha
after research it seems to be a small family owned business - but how are people manufacturing new ideas, but already invented?
so after reviewing, seems like you need to grab your own money to invest. I remember reading from chipolte, his father gave him 40k - 100k? just to start up the chain.
What i meant by bootstrapping was funding the startup during the initial phases. The way i look at it is that i would rather approach a VC/angel investors with at least a prototype to show them that im serious and have some skin in the game rather then approaching them with just an idea.
I think this approach not only shows potential investors that im serious about the venture but also some other aspects of entrepreneurship traits. Example perseverance, forming a team, sacrifice etc...
From your experiences with startups should i change course?
That makes sense. My interpretation of the term bootstrapping refers more to the guy who mortgages his house to get rolling and winds up selling whatever out of the trunk of his car.
I think you do indeed need a working prototype to get angel investors. At the same time, if you're short of capital at this crucial first stage, you might not even make it that far. But you need more than just a prototype. You'll need some kind of genesis of a brand along with some clear ideas on how it gets to market.
With that in mind, you might want to consider something crowdsourced like Kickstarter to get your initial round of funding. One of my clients is about to go that route.
also, ok so how about example of this. I bought this pressure water cleaner. Noticed the design was quite different than the others. water pressure washers have already been invented, so how is this guy able to manufacture his own brand name pressure washer? its not like he has a manufacturer line in his back yard ha ha
after research it seems to be a small family owned business - but how are people manufacturing new ideas, but already invented?
so after reviewing, seems like you need to grab your own money to invest. I remember reading from chipolte, his father gave him 40k - 100k? just to start up the chain.
Yes, but remember those success stories are like 1 in 100. Maybe a 1000. Fred Smith filched liberally from his family's trust fund accounts to start Federal Express. But if he had failed, he'd be in prison.
If you have a different, better mousetrap, then your first move needs to be to find a good patent attorney. Because unless you have a patent filing to protect your intellectual property, no VC guy will touch you with a ten-foot pole. I learned that to my sorrow a few years back when a client of mine had a great idea and we ran around in circles rounding up VC, only to learn that this guy had not bothered to move ahead with patent filings as I suggested.
The VC people dropped him like a hot potato. As in they wouldn't even return his phone calls. Because if this guy was too stupid to do the basics such as get intellectual property protection, then they felt their time was being seriously wasted.
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